Georgias Newly Minted Merchant Acquirer Limited Purpose Bank Charter Presents Potential Opportunities...and Risks
May 24, 2012
BY CHRIS DANIEL, KEVIN PETRASIC, ERICA BRENNAN AND MICHAEL HERTZBERG
Recently, Georgia Governor Nathan Deal signed into law, a law that authorizes a new limited purpose state bank charter for payment card merchant processors. The Georgia law allows entities to be chartered as merchant acquirer limited purpose banks, effectively allowing them to participate in payment card networks without having to engage in Bank Identification Number (BIN) rental arrangements or to be classified as a bank."