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Can I accept payments online without violating payment processing laws in Nebraska? What are the requirements?

To accept payments online in Nebraska, you must comply with the state’s payment processing laws. Here are the requirements:

Acceptable Payment Methods

Any state official or state agency may accept credit cards, charge cards, or debit cards, whether presented in person or electronically, or electronic funds transfers as a method of cash payment of any tax, levy, excise, duty, custom, toll, interest, penalty, fine, license, fee, or assessment of whatever kind or nature, whether general or special [1.2]. A licensee may pay the proceeds from a delayed deposit transaction or rebate to the maker in the form of check, money order, cash, stored value card, Internet transfer, or authorized automated clearinghouse transaction. A licensee may also utilize electronic payment through transfer or withdrawal of funds from the maker’s account only, but only with the written authorization of the maker [1.7].

Authorization and Fees

For each transaction, the state official or state agency shall obtain authorization for use of any credit card, charge card, or debit card used pursuant to this section from the financial institution, vending service company, credit card or charge card company, or third-party merchant bank providing such service [1.2]. A licensee may not charge the maker an additional finance charge or fee for cashing the licensee’s check or for negotiating forms of transaction proceeds or rebates other than cash [1.7].

Prohibited Acts

A person shall not engage in money transmission without a license issued pursuant to the Nebraska Money Transmitters Act [1.3]. It is unlawful for a seller to procure the services of any third-party delivery, courier, or other pickup service to obtain a consumer’s payment for goods, unless the goods are delivered and can be inspected [1.12]. A seller may not obtain or submit for payment a check, draft, or other form of negotiable paper drawn on a consumer’s checking, savings, share, or similar account, without that consumer’s express verifiable authorization [1.6].

Penalty

A violation of the payment card receipt printing law is a Class III misdemeanor for the first offense and a Class I misdemeanor for a second or subsequent offense [1.9].

In summary, you can accept payments online in Nebraska by complying with the acceptable payment methods, obtaining authorization for each transaction, and not engaging in prohibited acts. A licensee may pay the proceeds from a delayed deposit transaction or rebate to the maker in the form of check, money order, cash, stored value card, Internet transfer, or authorized automated clearinghouse transaction. A licensee may also utilize electronic payment through transfer or withdrawal of funds from the maker’s account only, but only with the written authorization of the maker.

Source(s):
Jurisdiction

Nebraska