Certain conduct relating to timing of money transmission gets regulated

A new law aims to help to protect consumers from fraud.

Sponsored by Rep. Carlie Kotyza-Witthuhn (DFL-Eden Prairie) and Senator Mark Koran (R-North Branch), the law, effective Aug. 1, 2020, will require a money transmitter, such as PayPal, to transmit money received within five business days unless specified circumstances exist.

It also requires a money transmitter to state in an agreement with a merchant that the transmitter has authority to place a hold on transmission if fraud is suspected.

Additionally, a transmitter must refund the customer’s money within 10 days of a request unless the money has already been delivered, instructions have been given committing an equivalent amount of money prior to the refund request or the licensee is otherwise barred from providing a refund.

HF3904/SF3800*/CH107

SF3800* / HF3904 / CH107