Compilation of Rules and Regulations of the State of Georgia › Department 80 - RULES OF DEPARTMENT OF BANKING AND FINANCE › Chapter 80-12 - MERCHANT ACQUIRER LIMITED PURPOSE BANKS › Subject 80-12-4 - OPERATIONS OF MALPB › Rule 80-12-4-.01 - Scope of Merchant Acquiring Activities

Current through Rules and Regulations filed through June 27, 2024
(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.
O.C.G.A. §§
										7-9-2, 7-9-3, 7-9-13.