Ga. Comp. R. & Regs. R. 80-12-4-.01 - Scope of Merchant Acquiring Activities
(1) Unless otherwise limited by the terms of
a conditional approval, an MALPB is authorized to carry out the following
merchant acquiring functions: obtaining and maintaining membership in one or
more payment card networks; signing up and underwriting merchants to accept
payment card network branded payment cards; providing the means to authorize
valid card transactions at client merchant locations; facilitating the clearing
and settlement of the transactions through a payment card network; engaging in
settlement activities which is the processing of payment card transactions to
send to a payment card network for processing, to make payments to a merchant
and, ultimately, for card holder billing; providing access to one or more
payment card networks to the MALPB's affiliates, customers, or customers of
affiliates; sponsoring the participation of the MALPB affiliates, customers, or
customers of its affiliates in one or more payment card networks; statement
generation and other information reporting for client merchants; training and
technical assistance for merchants; terminal support; encryption servicing;
authorization and capture; and dispute processing.
(2) If an MALPB seeks to engage in incidental
activities, then the MALPB must seek authorization from the Department to
engage in the incidental activity. Such request for authorization shall set out
the incidental activity desired, the reason for it, the safeguards or
protections which will be employed to ensure the continuing sound operation of
the MALPB, the need or convenience to customers which this activity would
serve, any legal justification required under state law, and the financial
ability of the MALPB to support the incidental activity. In order to evaluate
the requested authorization, the Department may request additional information
to aid in its review of the overall economic and managerial condition of the
MALPB, the complexity and risks involved in the proposed activity, the factors
set out in this Paragraph, and any other information deemed pertinent to the
request. The Department shall request additional information, approve,
conditionally or otherwise, or deny a request for authorization to engage in
incidental activities within sixty (60) days after receipt of the request. In
the event the Department does not take any of the above actions within sixty
(60) days after receipt, then the request will be deemed approved. The
timeframe for the Department to act on a request by an MALPB applicant to
engage in incidental activities shall be when the Department is required to act
on the application as set forth in Rule
80-12-2-.04.
(3) An MALPB shall only engage in merchant
acquiring activities originating in the United States and authorized by this
rule with a merchant having a physical location in the United States.
Similarly, for transactions over the internet or other similar electronic
medium, an MALPB shall only engage in merchant acquiring activities authorized
by this rule with a merchant who has a fixed place of business located in the
United States where the economic activity is completed. For purposes of this
rule, United States means any state of the United States, the District of
Columbia, any territory of the United States, Puerto Rico, Guam, America Samoa,
the Trust Territories of the Pacific Islands, the Virgin Islands, and the
Northern Mariana Islands.
(4) An
MALPB is precluded from performing functions not expressly authorized by rule
or by the Department, which includes, but is not limited to: the business of
banking; deposit taking other than as expressly authorized by O.C.G.A. §
7-9-12; money transmission as
defined in O.C.G.A. §
7-1-680; acting as a fiduciary as
defined in O.C.G.A. §
7-1-242(b);
sponsoring ATMs or cash dispensing machines; issuing payment card network
branded payment cards; merchant receivables factoring; merchant receivables
financing; advance funding activities; and soliciting, processing, or making
loans pursuant to payment cards or otherwise.
Notes
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