On January 1, 2026, California Senate Bill 362 (SB 362) will officially go into effect, expanding commercial financing disclosure requirements across the state.
CFGMS has proactively implemented compliance-ready systems designed to preserve fast, frictionless funding for its ISO partners without disrupting sales velocity for California based deals.
SB 362 Considerations for ISO Partners
SB 362 requires that the Annual Percentage Rate (APR) be disclosed on funding contracts and prohibits the misleading use of “interest” and “rate” terminology.
Under the new law:
– ISO Partners should use APR terminology whenever stating cost or rate
– Avoid the misleading use of “interest” or “rate” during the sales process.
– Stay current with DFPI guidance and enforcement policies. Please ask your CFGMS representative for any additional information or reach out directly to our compliance department at compliance@cfgms.com
CFG Merchant Solutions® Is Fully SB 362 Compliant
– We have trained our sales, underwriting, and operations teams to follow SB 362 requirements consistently and accurately.
– We are fully prepared to provide merchants and partners with all required disclosures and supporting documentation.
CFG Merchant Solutions® Commitment to Clarity and Compliance
If you have questions about SB 362, APR disclosures, or compliance expectations, please reach out to your CFG Merchant Solutions® representative or reach out directly to our compliance department at compliance@cfgms.com.
More guidance will follow as implementation continues. Thank you for your continued support and cooperation.
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