Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) For purposes of this section:
(1) "Automated Clearing House (ACH)
Receivables" are amounts debited from a customer's depository account or ACH
credits initiated by the customer through the ACH, which are for the purchase
or payment of money transmission products and services.
(2) "Credit Card Receivables" are amounts
owed by a licensee's merchant acquirer and arising from the licensee's
submission of credit card transactions for settlement by the merchant acquirer
for the purchase or payment of money transmission products and
services.
(3) "Debit Card
Receivables" are amounts owed by a licensee's merchant acquirer and arising
from the licensee's submission of debit or prepaid card transactions for
settlement by the merchant acquirer for the purchase or payment of money
transmission products and services.
(4) "Merchant acquirer" means an acquiring
bank or its designated processor who forwards the transaction information to
the respective credit card associations for authorization, clearing, and
settlement. The acquiring bank must remain fully liable for payment to the
licensee if the designated processor fails to settle with the
licensee.
(b) In
computing for purposes of Section
2082 of the
Financial Code the aggregate value of ACH Receivables, Credit Card Receivables,
and Debit Card Receivables owned by a licensee, the following shall be
excluded:
(1) That portion of the aggregate
value of ACH Receivables, Credit Card Receivables, and Debit Card Receivables
that have been outstanding for more than 10 business days.
(c) ACH Receivables must be
(1) due from U.S. national or state-chartered
depository institutions, and
(2)
current and not past due or otherwise doubtful of
collection;
(d) Credit
Card Receivables must be current and not past due or otherwise doubtful of
collection;
(e) Debit Card
Receivables must be current and not past due or otherwise doubtful of
collection; and
(f) Receivables may
be reported by the licensee as
(1) cash, cash
items, or cash in transit or
(2) as
ACH, Credit Card, or Debit Card Receivables or due from banks on the licensee's
balance sheet, or in any other manner approved by the
Commissioner.
1. New
section filed 8-11-2015; operative 10-1-2015 (Register 2015, No.
33).
Note: Authority cited: Sections
321,
334 and
2083,
Financial Code. Reference: Sections
2082 and
2083,
Financial Code.
