This policy applies to all political subdivisions and municipally owned utilities that accept or may accept debit or credit cards for payment of city goods or services. IC § 36-1-8-11 provides that political subdivisions or municipally owned utilities are authorized to accept various types of electronic payments. Credit card or debit card customer information is not subject to the Access to Public Records Act. Credit card or debit card customer information will not be subject for use for commercial purposes. This section allows political subdivisions and municipally owned utilities to accept payments in an electronic format.
(A) The Clerk Treasurer authorizes and opens all credit and debit card accounts.
(B) Credit and debit card transactions subject to convenience fee. No city department or agency will accept payment by credit card or debit card without charging a convenience fee to the customer to do so, and shall not exceed $3 per transaction.
(C) Definitions.
(1) "CONVENIENCE FEE." A fee that is charged to a customer for the convenience of making an electronic payment. A convenience fee charged to a customer, typically covers all or a portion of a payment vendor's transaction costs (see "transaction fees" below), as well as any other additional fees that are charged by an agency to recover direct costs associated with an electronic payment (e.g., agency costs for expedited processing; or agency costs for receiving a copy of a particular form). Such convenience fee shall not exceed $3 per transaction.
(2) "CREDIT CARD." A card indicating that the holder named on the card has obtained a revolving line of credit from the financial institution issuing the card up to a certain dollar amount valid to a specified date shown on the card. A “credit card” may be used to pay for goods and services from merchants or organizations participating in the corresponding credit card program. "Credit Card" means a credit card, debit card, charge card, or stored value card.
(3) "CUSTOMER." A person who is purchasing city goods/services/paying fees/fines or taxes with an electronic payment, such as a credit card, debit card or electronic check.
(4) "DEBIT CARD." A card indicating that the holder named on the card has an open account in a financial institution shown on the card that the holder named on the card is authorized to pay for purchases of goods and services from participating merchants so long as the account is valid and has adequate funds to cover the cost of either goods or services, or both, at the time of the transaction.
(5) "ELECTRONIC CHECK" or "E-CHECK." An ACH debit that is initiated by the customer or agency on the Internet against an open account in a financial institution that is authorized for use to pay for purchases of goods and services from participating merchants so long as the account is valid and has adequate funds to cover the cost of either goods or services, or both, at the time of the transaction. This is also known as an Internet check.
(6) "ELECTRONIC PAYMENT PROCESSING PROTOCOL." The standard, citywide processes used by an agency when accepting electronic payments from customers, including, but not limited to, contracts with financial services providers and business procedures.
(7) "ELECTRONIC PAYMENT SERVICES." Any service provided by a vendor who acts as an intermediary in processing an electronic payment, including, but not limited to: merchant banking services, credit card payment processing, ACH debit processing, and Internet payment gateway services. Depending on how contracts with third party vendors are established by the City of Beech Grove, electronic payment services may be coordinated by a single vendor or multiple vendors.
(8) "ELECTRONIC PAYMENTS." Any financial transaction by which funds are transferred to the city through any type of electronic payment option or method. The electronic payment options include, but are not limited to; Internet payment processing, point-of-sale payment processing, and interactive voice response (telephone payments). The methods of payment include, but are not limited to: automated clearing house (ACH), credit cards, debit cards, ACH debit processing and wire transfers.
(9) "INTERACTIVE VOICE RESPONSE SYSTEM (IVR).” A system that allows users to pay for services over the telephone or other audio-signal earner using a credit card.
(10) "INTERNET PAYMENT GATEWAY SERVICE." A service provided by a vendor that directs an Internet payment transaction to the appropriate third party payment processor who facilitates the transfer of funds from a specific financial institution.
(11) "MERCHANT BANKING SERVICE." Refers to the designated bank or banking service that processes an electronic payment.
(12) "MUNICIPAL CORPORATION." Unit, school corporation, library district, local housing authority, fire protection district, public transportation corporation, local building authority, local hospital authority or corporation, local airport authority, special service district, or other separate local governmental entity that may sue and be sued.
(13) "PAYMENT VENDOR." A service provider who is involved with the electronic payment transaction, including, but not limited to; merchant bank, credit card issuer, credit card association, Internet payment gateway, ACH or credit card payment processor.
(14) "PERSONAL FINANCIAL INFORMATION." The information provided by the customer in the course of completing a payment transaction with the city through an electronic transfer of funds, including, but not limited to; credit card number, debit card number and bank account number.
(15) "POINT-OF-SALE" or “POS.” A payment option that performs a real-time payment authorization of a customer's account when the customer presents their credit card (or other payment method) in-person at the time of sale.
(16) "POLITICAL SUBDIVISION." Municipal corporation or special taxing district.
(17) "SPECIAL TAXING DISTRICT." A geographic area within which a special tax may be levied and collected on an ad valorem basis on property for the purpose of financing local public improvements that are: (a) Not political or governmental in nature; and (b) Of special benefit to the residents and property of the area.
(18) "TRANSACTION FEE." The same as "transaction cost" and refers to the cost incurred by a payment vendor for executing an electronic payment. If an agency passes all or a portion of this transaction cost on to the customer, then the resulting fee to the customer is typically called a "convenience fee" (see definition above).
(D) Policies. City Departments may accept electronic payments for any business service or purchase of goods or payment of fines, fees or taxes pursuant to this section and IC § 36-1-8-11. An agency that accepts electronic payments must comply with the electronic payment processing protocol and procedural steps as set forth in these administrative policies and procedures.
(1) Electronic payment processing protocol and privacy.
(a) The Clerk Treasurer, with technical assistance and equipment if necessary from the city's Information Systems "IS", shall establish and maintain the protocol for electronic payment processing, including, but not limited to, contracts for electronic payments, convenience fees, and standard business processes and procedures.
(b) No agency shall store a customer's personal financial information in a database accessible to the public. If an agency has a legal and justifiable business need to store personal financial information obtained from customers during an electronic payment transaction, the agency is required to provide written procedures and policies for the safekeeping of such personal financial information. Such written procedures and policies shall include the names of city employees who will have access to such personal financial information. Such procedures and policies shall be forwarded to the Clerk Treasurer for written approval before storing personal financial information in a database accessible to city employees.
(2) Contracts.
(a) The Clerk Treasurer shall establish and administer contracts with vendors for the acceptance and processing of electronic payments, including, but not necessarily limited to: merchant banking services, Internet payment gateway services, and third party electronic payment processors.
(b) No city agency may enter into any vendor agreements for any electronic payment service without the written consent of the Clerk Treasurer.
(c) The Clerk Treasurer, through its establishment of contracts with payment vendors and banking partners, shall assist agencies in understanding contract requirements and the pricing structure of transaction fees.
(3) Convenience and transaction fees.
(a) Pursuant to IC 36-1-8-11(f), the political subdivision or municipally owned utility may collect from the person using the credit card cither or both of the following:
1. An official fee that may not exceed the transaction charge or discount fee charged to the political subdivision or municipally owned utility by bank or credit card vendors.
2. A reasonable convenience fee that may not exceed $3 and must be uniform regardless of the bank card or credit card used.
(E) Procedures.
(1) City agencies will obtain information from the Clerk Treasurer on its electronic payment processing protocol, contracts for electronic payments, transaction fee structure, and standard business processes and procedures.
(2) City agencies will prepare and send to the Clerk Treasurer a written request for electronic payment services.
(a) Written requests will include information on agency policy and procedures for acceptance of electronic payments.
(b) If applicable, provides legal and justifiable business reasons to store personal financial information obtained from customers during an electronic payment transaction. This should include safekeeping procedures for storage of person financial information and the names of city employees having access to the information.
(3) The Clerk Treasurer will review to provide approval or denial of written requests for electronic payment services. The city agency will provide required information to the Clerk Treasurer to set up accounts which may include, but is not limited to, the following:
(a) Checking account for electronic payment deposits.
(b) Merchant bank account and credit card issuer accounts for credit card payment processing.
(c) Internet payment processing and third-party payment processor accounts.
(Res. 6, 2020, passed 8-3-20)