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Merchant Acquiring Services, Equipment and Payment Gateway Services

Contract ID: RM3702

Start Date: 01/03/2016

End Date: 01/03/2018

Description

This framework agreement gives you access to the services and equipment that will enable your organisation to accept payments by debit card, credit card and other payment methods to receive the funds directly into a designated bank account.

The Payment Gateway facilitates payments to be made online or by telephone. It is the equivalent of a physical point of sale terminal.

An illustration of how the merchant acquiring process works is contained within the document tab as annex G.

Suppliers will ensure that you receive an uninterrupted service 24 hours a day, 7 days a week, 365 days of the year.

The service is divided into three lots:

Lot 1: Merchant Acquiring Services and Equipment

A settlement service which allows the funds to pass from the end user's (cardholder) card account into your organisation's (merchant/retailer) bank account for payment of goods and services quickly and securely in line with UK market transaction offerings in other sectors. In addition, the provision of physical payment terminals, telephone order facilities and Internet solutions to enable the card payment data to reach the acquirer.

You can continue to use your existing Payment Gateway provider or source this service elsewhere.

Lot 2: Merchant Acquiring Services and Payment Gateway Services

A settlement service which allows the funds to pass from the end user's (cardholder) card account into your organisation's (merchant/retailer) bank account for payment of goods and services quickly and securely in line with UK market transaction offerings in other sectors. In addition, the provision of Payment Gateway services to facilitate the acceptance online of debit and credit cards, e-wallets and alternative payment solutions.

Lot 3: Merchant Acquiring Services, Equipment and Payment Gateway Services

A settlement service which allows the funds to pass from the end user's (cardholder) card account into your organisation's (merchant/retailer) bank account for payment of goods and services quickly and securely in line with UK market transaction offerings in other sectors.

In addition, the provision of physical payment terminals, telephone order facilities and Internet solutions to enable the card payment data to reach the acquirer and the provision of Payment Gateway services to facilitate the acceptance online of debit and credit cards, e-wallets and alternative payment solutions

You do not have to take all 3 elements of the service if you wish to use a lot 3 supplier, for example you could take Merchant Acquiring Services and Equipment but not Payment Gateway Services, with a view to purchasing the latter element at a point in the future.

Under EU rules all suppliers in lot 3 are capable of providing the services in lots 1 and 2 so when doing further competitions in lots 1 and 2 you must invite suppliers from lot 3 who offer the same service.

NOTE: Due to ongoing issues with the functionality of the website the details contained on the 'lot details' tab below are incorrect so please see annex E on the documents tab for the information you need.  

 

Benefits

  • receive payment quickly and securely
  • competitive rates to help you reduce the cost of receiving card payments
  • no management charges
  • reduced terminal hire fees
  • pence per transaction payment gateway fees
  • volume discounts from combining all customers transaction volumes across the agreement
  • uninterrupted service 24/7/365
  • detailed management information including improved cash flow visibility
  • opportunity to make operational efficiencies and enhance business process savings
  • pricing across each of the services including additional price reduction opportunities, driven by aggregated transaction volumes and the benefits of increased leverage on the market
  • a CCS managed agreement providing ‘hands on’ supplier management and contract reviews
  • simple to use and expert procurement advice from CCS, if required
  • substantially reduce the cost and timescales involved in procuring services to meet your needs
  • excellent choice of suppliers
  • significant process benefits/operational cost management can be realised by either moving away from accepting cash or cheques or through the expansion of an existing Merchant Acquiring programme in a modern and electronic environment 
  • easy access to secure payment methods via the telephone, online or face to face
  • suppliers are required to keep us informed of payment innovations and methods as they arise and make these available, if required
  • suppliers are pre-qualified as to their general suitability, this means that when you buy their services they can meet the required standards in the provision of the services that you need

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Access

Under EU rules all suppliers in lot 3 are capable of providing the services in lots 1 and 2 so when doing further competitions in lots 1 and 2 you must invite suppliers from lot 3 who offer the same service.

The customer guide explains how to get the best from the agreement and call-off contracts.

The agreement has an initial duration of 2 years with the option to extend the agreement for any period or periods up to a maximum of 2 years in total from the expiry of the initial duration.

The maximum possible duration is 4 years, with call-off contracts permitted to be awarded for up to 6 years but not permitted to last more than 2 years beyond the expiry of the agreement. For example, the longest permissible duration of a call-off awarded with 1 year of the agreement remaining is 3 years.

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Savings

We anticipate you will achieve cost savings over and above current charges.

We have negotiated a transparent pricing structure and created opportunities for all organisations to benefit from reduced pricing based on aggregated transaction volumes.

A pricing guide is available on request - email info[at]crowncommercial.gov[dot]uk

The pricing schedules have been constructed in a matrix format with numerous permutations on pricing subject to:

Card type i.e. credit or debit card – based on the 20 most common cards in use. Alternative payment methods are also catered for e.g.  e wallet

Secure and non-secure payments i.e. chip and pin, secure payments, with or without the Payment Gateway

Average transaction values – this is to reflect stakeholders average payments processed and these are banded by payment ranges and derive the best fit for customers E.g.

£0-30                                                                     £30-£100                                                           £100-£225                                                            >£225

Suppliers may provide a discount or an improvement on pricing, on a sliding scale for those contracting authorities who wish to pay their invoice within specified periods ranging between 1 to 28 days. This element should be specified in your requirements.

Additionally a further discount or price improvement may also be achieved subject to when you decide to receive settlement of funds from your chosen supplier. The pricing frameworks are fixed on settlement periods of 2, 7 or 14 days

A good understanding of an organisation's payment methodologies, transaction numbers and average payment ranges will be required to ensure that contracting authorities derive the best fit and value from the pricing available or if there is a need for further competition.

The pricing for this agreement is considered to be commercially sensitive and may prejudice the suppliers involved if made publically available. The pricing schedule and a pricing guide will be made available to you on request - e mail info[at]crowncommercial.gov[dot]uk

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Background

The agreement replaces the previous DVLA and GBS Merchant Acquiring contracts and aims to formalise the use of debit card, credit card and alternative payment methods, which many organisations already use and which are already secured by the financial institutions.

Based on stakeholder requirements and the technological developments within the market we derived a strategy to merge the UK public sector’s requirements under one central framework agreement.

The agreement provides the opportunity to:

  • Refresh the existing requirement for key customers, whilst also taking advantage of market changes and new innovation.
  • Introduce and attract new and/or additional potential Suppliers to increase competition.
  • Increase savings opportunities both in terms of process efficiencies and a reduction in fees with much greater focus on secure transactions, delivering significant savings from reduced Interchange fees.
  • Address Office for Government Senior Information Risk Owner (OGSIRO) request to deliver data security to the very latest standard.
  • Standardise the service delivery i.e. security compliance, management information, KPIs, response times etc.
  • Compliment and support future growth of the CCS Merchant Acquiring Services offering to meet changing business needs.

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Lot details

Lot Number Lot Name Lot Category Number of Suppliers Contract Expiry
All suppliers 4 - click here to view suppliers
1 Merchant Acquiring Services and Equipment eCommerce 2 - click here to view suppliers 01/03/2018
2 Merchant Acquiring and Payment Gateway Services eCommerce 1 - click here to view suppliers 01/03/2018
3 Merchant Acquiring Services, Equipment and Payment Gateway Services eCommerce 3 - click here to view suppliers 01/03/2018

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Framework Manager Contact Details

CCS Help Desk

info@crowncommercial.gov.uk

0345 410 2222

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