OCC Opinions and Letters on Permissible Electronic Banking Activities: Electronic Commerce
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OCC publishes letters associated with charter approvals and other licensing activities, including interpretive letters. Some of these letters provide interpretations of existing laws and regulations. This section includes significant approval letters and interpretations associated with Internet banking activities. The following is a listing of topics in this section that also serve as quick links to the referenced materials:
- Website Hosting Services
- Links between Bank Websites and Third Party Sites
- Virtual Malls
- Sale of Financial Services and Products over the Internet
- Electronic Marketplace for Non-Financial Products over the Internet
- Electronic Facility To Support Collaborative Efforts Among Businesses
Website Hosting Services
| Description | Opinions & Letters |
|---|---|
| Interpretive Letter No. 1036 (August, 2005). A remote check scanning terminal at a customer's location, which permits the customer to deposit checks electronically is not a branch. | Interpretive Letter No. 1036 (PDF) |
| MB Financial Bank, N.A., Corporate Decision # 2002-13 (July 31, 2002). A national bank operating subsidiary engaged in leasing computer equipment under 12 U.S.C. 24(10) may, incidental to that leasing activity, offer website development services to leasing customers in order to compete in the computer equipment leasing business. | Corporate Decision No. 2002-13 (PDF) |
| Business First National Bank, Corporate Decision No. 2001-18 (July 3, 2001). A national bank may enable small business merchants to acquire a package electronic services that allows the merchants to create web stores and process electronic payments for purchases made over the Internet. The national bank, as finder, refers of the merchants to another unaffiliated company that provides website building software and web hosting services. The bank provides authorization and processing services necessary for the merchants to accept on-line credit and debit card payments in a secure environment. The bank also provides the merchants with reports on the activity of their web stores and answers to "frequently asked questions" on the use of the web design software based upon answers prepared and supplied by the software company. The bank helps other financial institutions to market as finders this package electronic commerce services to their own merchant customers. | Corporate Decision No. 2001-18 (PDF) |
| Anexsys, Conditional Approval No. 361 (March 3, 2000). A national bank, under its finder authority, can develop and host a website for a government agency that will allow the public, consumers, and other agencies to access or purchase services, information, forms, and products from that agency. | Conditional Approval No. 361 (PDF) |
| EFS National Bank, Corporate Decision No. 2000-01 (January 29, 2000). A national bank can acquire a software company that owns software that enables users to make changes to their websites where the bank will sell the software only as part of a bundle of Internet web hosting services provided to its merchant customers. | Corporate Decision No. 2000-01 (PDF) |
| SPC, Inc., Corporate Decision No. 99-50 (Dec. 23, 1999). A national bank, as finder, may refer its merchant customers to a third party that will provide website development and hosting services. | Corporate Decision No. 99-50 (PDF) |
| Key (Econex Letter), Interpretive Letter No. 875 (October 31, 1999). A national bank may, incidental to its offering of commercially engaged website hosting, provide web design services to its merchant customers. | Interpretive Letter No. 875 (PDF) |
| Fleet, Interpretive Letter No. 856 (March 5, 1999). This OCC legal opinion found that a national bank can host commercially enabled website for small retailers. This service will enable a retailer to operate a website that can receive and process credit card orders for its merchandise over the Internet. The bank will establish, register, and host the website in the name of the retailer. It will also store the data representing the retailer's online catalog and provide periodic reports the retailer of site related activities. Finally, the bank will also provide associated payments and deposit services resulting from web-based transactions. The OCC found that the website hosting activity is a form of electronic "finder" activity. | Interpretive Letter No. 856 (PDF) |
| Southwest Bank, N.A., Interpretive Letter No. 928 (December 24, 2001). For merchants, government agencies, and non-profit service organizations that are Bank customers (the "Merchant Customers") with previously established websites, a national bank may design and host a website and provide software enabling an "electronic wallet" function" that will permit: 1) the Merchant Customers to process various forms of payments electronically from their end clients; 2) Merchant Customers' end clients to electronically schedule and pay for events offered by a Customer organization; and 3) the Merchant Customer to acquire and compile information from their end clients in connection with the above described transactions to be used for authentication purposes and to facilitate future interactions between the Customer and its end client. Also, in connection with its Internet-related web-services, the Bank will consult with and advise its Merchant Customers on how the website should be designed and operated so the website hosted by the Bank and the related information is secure from unauthorized access while on the Bank's premises, while in transit to and from the Bank, and while in the Customer's possession. | Interpretive Letter No. 928 (PDF) |
Links between Bank Websites and Third Party Sites
| Description | Opinions & Letters |
|---|---|
| AeroBank.Com, N.A.,Conditional Approval No. 347 (January 29, 2000). National banks, under their finder authority, can obtain commitments in web linking agreements with third parties to provide preferential pricing or other terms to bank customers referred to the third party though the bank site. | Conditional Approval No.347 (PDF) |
| Integrion I, Conditional Approval No. 221 (December 4, 1996). National banks, in the exercise of their finder authority, may establish hyperlinks between their home pages and the Internet pages of third party providers so that bank customers will be able to access those non-bank websites from the bank site. | Conditional Approval No. 221 (PDF) |
Virtual Malls
| Description | Opinions & Letters |
|---|---|
| UMB, Conditional Approval No. 369 (February 25, 2000). A national bank may, incidental to its hosting of a virtual mall, provide at that site access to a limited amount of non-financial information (e.g., information on current events and weather) that is necessary to attract persons to the virtual mall site. | Conditional Approval No. 369 (PDF) |
| Key/Econex, Interpretive Letter No. 875 (October 31, 1999). National banks may operate a "virtual mall," i.e., a bank-hosted set of web pages with a collection of links to third party websites organized as to product type and available to bank customers so that bank customers can shop for a range of financial and non-financial products and services via links to sites of third party vendors and merchants can electronically confirm payment authorization before shipping goods. | Interpretive Letter No. 875 (PDF) |
Sale of Financial Services and Products over the Internet
| Description | Opinions & Letters |
|---|---|
| BNS, Interpretive Letter No. 889 (April 24, 2000). A national bank may make a minority investment in a firm that, as a registered broker, will use the Internet to provide retail brokerage services, lending, and insurance-related services to clients who are customers of financial institutions that have agreements with the firm. | Interpretive Letter No. 889 (PDF) |
Electronic Marketplace for Non-Financial Products over the Internet
| Description | Opinions & Letters |
|---|---|
| Barnett, Corporate Decision No. 97-60 (July 1, 1997). National bank may operate a website providing consumers and dealers with detailed information on used cars for sale that meet purchaser preferences—a virtual used car lot. Upon purchaser authorization, transmitting a purchase request to the seller with the consumer information so the seller can contact the purchaser. Site can also conduct electronic auctions for dealers. In connection with resulting sales and referrals, the bank could also offer a range of financial products related to vehicle purchases such as loan and lease arrangements. | Corporate Decision No. 97-60 (PDF) |
Electronic Facility To Support Collaborative Efforts Among Businesses
| Description | Opinions & Letters |
|---|---|
| Hemisphere National Bank, Conditional Approval No. 436 (December 19, 2000). The OCC granted conditional approval for this national bank in Miami, Florida to acquire a non-controlling investment in ImportCard.com. Through its website, ImportCard.com will facilitate trade financing between U.S. exporters and Latin American importers by arranging financing, obtaining credit insurance, and acting as escrow and paying agent. Approval was granted subject to OCC's standard conditions for non-controlling investments. | Conditional Approval No.436 (PDF) |
| UMB, Conditional Approval No. 369 (February 25, 2000). As a finder, a national bank may establish an Internet site that will function as an electronic central facility enabling businesses to negotiate and organize among themselves aggregate buying, selling, or financing efforts and for other collaborative efforts. | Conditional Approval No. 369 (PDF) |