Ga. Comp. R. & Regs. R. 80-12-7-.02 - Safeguarding Requirements

(1) All merchant funds shall be deposited immediately by the MALPB and shall remain in an account at a financial institution that is federally insured and authorized to do business in this State until paid over to the individual merchant; provided, however, that nothing herein shall preclude an MALPB from making appropriate deductions for chargebacks, fees, reserves, and other costs related to providing authorized merchant acquiring services owed by the individual merchant prior to remitting the net amount to the individual merchant. At the time of deposit into the account, the funds of the individual merchant in the account shall be deemed to be the property of the individual merchant. The MALPB shall maintain in good faith and in the ordinary course of business records with respect to the account that shall identify individual merchants in order that the total amount held in the account for each individual merchant can be readily ascertained.

(2) The agreement and related records for the account required to be maintained by Paragraph 1 of this Rule shall expressly provide that the account is maintained for the benefit of the MALPB's individual merchants.

(3) An MALPB and its officers shall have a fiduciary duty to preserve and account for proceeds ultimately payable to a merchant and shall be liable for all such proceeds.

(4) An MALPB shall not pledge or otherwise grant a security interest in funds that are ultimately payable to a merchant.

Notes

Ga. Comp. R. & Regs. R. 80-12-7-.02

O.C.G.A. §§ 7-9-3, 7-9-13.

Original Rule entitled "Safeguarding Requirements" adopted. F. Dec. 3, 2013; eff. Dec. 23, 2013. Amended: F. July 12, 2024; eff. Aug. 1, 2024.