Summary of the Rules Visa's rules define location for the purpose of an e-commerce or MOTO merchant (also known as a "merchant outlet") as the country in which all of the following criteria have been met:
ﾘPermanent Establishment: A fixed place of business through which a merchant completes an economic activity (i.e. relevant Visa transaction) regardless of where web sites or servers are located.
ﾘIf a merchant sells digital goods only, the country where the principals work must be used in lieu of a permanent establishment.
ﾘMerchant Address: Local address of the merchant for correspondence and the judicial process. A post office or mail forwarding service does NOT meet this requirement.
ﾘMerchant Business License: Location where the merchant holds a valid business license for the merchant outlet.
ﾘTaxes: Location where the merchant outlet pays taxes related to sales activity.
How the Rules Impact Your Business ------------- As you can see, the rules require at a minimum that a merchant wishing to process through a US acquirer have a legal entity plus a physical presence in the United States.
