CAL.Regulation
California requires electronic funds transfer for alcohol wholesale payments
AB 2375 (Chapter 396), signed September 20, requires licensed retailers' payments to licensed wholesalers for beer, wine, or distilled spirits to be made by wholesaler-initiated electronic funds transfer, received no later than 30 days after delivery. Cash, check, or money order is allowed only in specified cases such as failed transfers or temporary permits. Each party pays its own processing costs, and retailers may not accept rebates or incentives from the wholesaler's chosen processor.
Enrolled text (California Legislative Information) → · Governor of California
Key points
- Payments must be by EFT initiated by the wholesaler presenting an invoice, received within 30 days after delivery.California Legislative Information
- Cash, check, or money order is allowed only for failed EFTs, interim or temporary permits, or processor service interruptions.California Legislative Information
- Each party pays its own electronic payment service costs; neither may pay the other's fees.California Legislative Information
- The wholesaler selects the third-party payment processor, with defaults if the parties cannot agree.California Legislative Information
- Wholesalers may accept credit card payments, with the retailer bearing the transaction cost.California Legislative Information
- Retailers may not accept a rebate, incentive, or other thing of value from the wholesaler's chosen processor.California Legislative Information
Sources2 articles across 2 outlets
California Legislative Information
Governor of California