(a) Commencing January 1, 2026, and except as provided in subdivision (b) and paragraph (3) of subdivision (c), payment from a retailer licensee to a wholesaler licensee for delivery of beer, wine, or distilled spirits shall be made by electronic funds transfer in accordance with the following requirements:

1. (1) The wholesaler licensee shall initiate the electronic funds transfer by initiating the withdrawal of funds from the retailer licensee’s bank account.
2. (2) The electronic funds transfer shall occur by the expiration of the 30th day from the date of delivery of the beer, wine, or distilled spirits.

3. (3) Any costs related to electronic payment services shall be paid by the party that incurred those costs.

   1. (A) Any service fees related to electronic payment transactions shall be applied in an equitable manner to each subscribing wholesaler and retailer and shall justifiably match the services they receive from the electronic payment service provider.
   2. (B) The wholesaler shall not pay, directly or indirectly, for electronic payment service fees incurred by a retailer.
   3. (C) The retailer shall not pay, directly or indirectly, for electronic payment service fees incurred by a wholesaler.

(b) A payment may be made using cash, check, or money order only in the following instances:

1. (1) If accepting payment following an electronic funds transfer of insufficient funds.
2. (2) If the retailer licensee holds an interim operating permit pursuant to Section 24044.5 or a temporary permit pursuant to Section 24045.5.
3. (3) During temporary service interruption of the third-party payment processor.
4. (4) During the first 30 days following the issuance of a license to the retailer licensee.

(c)

1. (1) To maintain control of its ability to receive payment for delivery, a wholesaler licensee shall be responsible for selecting the third-party payment processor used to facilitate an electronic funds transfer pursuant to this section. The wholesaler and retailer may agree on the third-party payment processor. If the parties are unable to agree, the parties shall use the third-party payment processor used by the retailer as of July 1, 2025, to pay for wholesale alcohol purchases. If by July 1, 2025, the retailer does not use a third-party payment processor, the parties shall use the third-party payment processor selected by the wholesaler.
2. (2) A wholesaler licensee shall not select a third-party payment processor that does not meet the requirements of this section or that requires more than 30 days’ notice from the wholesaler licensee to terminate the processor’s agreement with the wholesaler licensee.
3. (3) Notwithstanding subdivision (a), a wholesaler may choose to accept credit card payments. If payment is made using a credit card, the retailer shall bear the cost of the transaction, so as to mitigate the value of secondary benefits realized by the retailer using the credit card.