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

Accepting Payments Online in New Mexico

To accept payments online in New Mexico, you must comply with the state’s payment processing laws. The Uniform Commercial Code (UCC) governs payment processing in New Mexico [1.1][1.4].

According to Section 55-4A-202 of the UCC [1.3], a payment order received by the receiving bank is the authorized order of the person identified as sender if that person authorized the order or is otherwise bound by it under the law of agency. If a bank and its customer have agreed that the authenticity of payment orders issued to the bank in the name of the customer as sender will be verified pursuant to a security procedure, a payment order received by the receiving bank is effective as the order of the customer, whether or not authorized, if the security procedure is a commercially reasonable method of providing security against unauthorized payment orders, and the bank proves that it accepted the payment order in good faith and in compliance with the security procedure and any written agreement or instruction of the customer restricting acceptance of payment orders issued in the name of the customer [1.3].

Therefore, to accept payments online, you must ensure that your payment processing system complies with the requirements of Section 55-4A-202 of the UCC, including verifying the authenticity of payment orders issued to the bank in the name of the customer as sender pursuant to a commercially reasonable security procedure. Additionally, you must comply with any agreements or rules governing payment processing that you have entered into with your bank or payment processor [1.4].

Requirements for Accepting Payments Online

To comply with New Mexico’s payment processing laws, you must ensure that your payment processing system meets the following requirements:

  • Verifies the authenticity of payment orders issued to the bank in the name of the customer as sender pursuant to a commercially reasonable security procedure
  • Complies with any agreements or rules governing payment processing that you have entered into with your bank or payment processor

Additionally, you may need to comply with other state and federal laws and regulations governing payment processing, such as data privacy and security laws [1.1].

It is recommended that you consult with a legal professional to ensure that your payment processing system complies with all applicable laws and regulations.

Conclusion

To accept payments online in New Mexico, you must comply with the state’s payment processing laws, including verifying the authenticity of payment orders issued to the bank in the name of the customer as sender pursuant to a commercially reasonable security procedure. Additionally, you must comply with any agreements or rules governing payment processing that you have entered into with your bank or payment processor. It is recommended that you consult with a legal professional to ensure that your payment processing system complies with all applicable laws and regulations.

Source(s):
Jurisdiction

New Mexico