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FPPC debates new rules for online payment processors and prepaid cards; commissioners ask for more outreach
Summary
Staff proposed regulations to require verification by payment processors (address verification, IP checks) and to limit use of prepaid debit/gift cards for contributions and committee expenditures over $100; commissioners and stakeholders asked staff to pause and solicit vendor, treasurer and enforcement feedback before final rules.
Regulators at the Fair Political Practices Commission on Aug. 21 discussed a proposed regulatory package aimed at tightening verification for online campaign contributions and restricting the use of certain prepaid cards for campaign contributions and expenditures.
Senior Commission Counsel Zachary Norton said enforcement investigators found cases where multiple online contributions tied to one card indicated weak verification by contract vendors. Norton recommended verification steps such as address verification service (AVS) checks and examination of IP addresses to flag potential foreign or prohibited sources, while…
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