What are the laws and regulations regarding online payment processing?

In Arizona, businesses that accept payments online must ensure that their payment processing system is compliant with the law. All Arizona businesses must adhere to the Electronic Funds Transfer Act (EFTA) which outlines the standard for electronic payments and the responsibilities of both the consumer and the business. The EFTA requires businesses to provide customers with disclosures and fees associated with their purchase. The Payment Card Industry Data Security Standards (PCI DSS) outlines specific requirements for businesses that process, store, and transmit credit card data. This includes security measures such as encryption, access control, and testing of security systems. Businesses are required to remain compliant with the PCI DSS and are subject to audits and fines for noncompliance. The Arizona Department of Financial Institutions is the primary regulator of online payment processing in the state. Businesses must register with the department and follow procedures outlined in Arizona’s Payment Processing Act. This act outlines the requirements for safeguards, recordkeeping, customer notification, and dispute resolution. In addition to state regulations, businesses must follow the rules set forth by payment processing networks such as Visa, MasterCard, and American Express. These networks may require businesses to be PCI DSS compliant and to follow additional guidelines. Overall, businesses that accept online payments in Arizona must comply with a variety of laws and regulations. It is important for businesses to understand their obligations to remain compliant and secure.

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What are the laws and regulations regarding online payment processing?

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