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Retailer Electronic Funds Transfer (EFT) Payments for Alcoholic Liquor Products

Retailer Electronic Funds Transfer (EFT) Payments for Alcoholic Liquor Products

Electronic Funds Transfer (EFT) for Spirits Purchases from Commission

Electronic Funds Transfer for Spirits Purchases

  • Administrative Order 2021-11 requires retailer licensees to pay for spirits purchases from the Commission through electronic funds transfer (EFT).

Contact the Commission's Financial Management Division for questions on submitting the EFT Authorization form at 517-284-6260 or lara-mlcc-finance-information@michigan.gov.

 

Dishonored EFT Payments to Commission for Spirits Purchases

  • The amount of the dishonored payment for the purchase of spirits must be repaid in full, plus a $40.00 bank service charge before a licensee may make another spirits purchase.  This repayment may only be made by cash, certified check, cashier's check, bank money order, or postal money order.
  • Subject to Administrative Rule R 436.1059(1), a retailer licensee that makes an EFT payment for spirits to the Commission that is subsequently dishonored for lack of sufficient funds or any other reason (account closed, account frozen, etc.) will be subject to a violation under the Michigan Liquor Control Code and Administrative Rules.  Fines may be as high as $300.00 per violation charge and the Commission may also suspend or revoke a license.
  • Administrative Rule R 436.1059(2)-(3) requires a retailer that makes 5 or more dishonored payments to the Commission in a 24-month period to pay for spirits purchases by cash, certified check, cashier's check, bank money order, or postal money order for 6 or more months.  Repeated dishonored payments may result in additional time that the licensee may not be able to pay using EFT.

Electronic Funds Transfer (EFT) for Purchases from Wholesaler Licensees

Electronic Funds Transfer for Beer, Wine, & Mixed Spirit Drink Purchases from Wholesaler Licensees

  • Administrative Order 2023-01 requires retailer licensees to pay for beer, wine, and mixed spirit drink purchases from Wholesaler licensees through electronic funds transfer (EFT), subject to the following:
  • The Wholesaler licensee must initiate the EFT payment transmittal by initiating the withdrawal of the funds from the retailer’s account.
  • The EFT payment transmittal to the banking institution must occur no later than the next banking business day from the date of the delivery of the beer, wine, or mixed spirit drink order to the retailer licensee.
  • A single EFT payment may be made to a Wholesaler licensee making deliveries to multiple locations of a chain retailer on the same business day.  Retailer and wholesaler must maintain a store-by-store detailed record to ensure that individual delivery invoices may be traced to the EFT payment.
  • A Wholesaler licensee may only accept cash, check, or money order in the following instances:
  • When accepting payment for a dishonored EFT payment.
  • During temporary service interruptions of the third-party payment processing company.
  • For sales to the holder of a Special License.
  • For thirty (30) days following the issuance of a license to a retailer.

 

Dishonored EFT Payments to Wholesaler Licensees for Beer, Wine, & Mixed Spirit Drink Purchases

  • The amount of the dishonored payment for the purchase must be repaid in full to the Wholesaler licensee.
  • As required by the Michigan Liquor Control Code, MCL 436.1903b(2), a Wholesaler licensee shall require a retailer that has made a payment to the Wholesaler that has been dishonored by a financial institution to pay the Wholesaler an administrative fee as follows:
  1. For the first dishonored payment, $50.00.
  2. For a second dishonored payment within 12 months of the first dishonored payment, $100.00.
  3. For a third dishonored payment within 12 months of the first dishonored payment, $150.00.
  4. For a fourth dishonored payment within 12 months of the first dishonored payment, $200.00.
  5. For a fifth or any subsequent dishonored payment within 12 months of the first dishonored payment, $250.00.
  • Subject to the Michigan Liquor Control Code, MCL 436.1903b(1), a retailer licensee that makes an EFT payment for beer, wine, or mixed spirit drink that is subsequently dishonored for any other reason (lack of sufficient funds, account closed, account frozen, etc.) will be subject to a violation under the Michigan Liquor Control Code and Administrative Rules.  Fines may be as high as $300.00 per violation charge and the Commission may also suspend or revoke a license.
  • As required by the Michigan Liquor Control Code, MCL 436.1804, the Commission shall suspend a retailer licensee for 14 days if the retailer licensee has made 6 or more payments to a Wholesaler licensee that have been dishonored by a financial institution in violation of section 903b on different dates in 12 consecutive months.