Content

10.1

The Finance and Performance Policy Committee
received a report of the Director of Finance and Commercial
Services which requested the commissioning of a new 5-year contract
for merchant acquiring services. It was stated that the primary
goal of the commission would be to obtain more competitive
transaction fees, which was expected to significantly reduce the
costs associated with processing card payments.

 

 

10.2

RESOLVED UNANIMOUSLY: That the
Finance and Performance Policy Committee: -
 
-      
Approve the commissioning of a 5-year contract, with an estimated
value of £4,125,000 (£825k per annum), for merchant
acquiring services for Sheffield City Council.

 

 

10.3

Reasons for
Decision

 

 

10.3.1

The recommendation to commission a new
merchant acquiring service is aimed at securing more competitive
transaction fees. By re-contracting for merchant acquiring service,
it is anticipated that the Council can significantly reduce the
costs associated with processing card payments. These financial
savings can be reallocated to other essential services and
projects, enhancing the overall fiscal health of Sheffield City
Council.

 

 

10.4

Alternative Options
Considered

 

 

10.4.1

As this is third party spend at a level that
triggers a procurement under the Public Contracts Regulations 2015
and the Standing Orders of the Council there is no opportunity to
consider options other than the route to market.

 

 

10.4.2

There is an option to do nothing, however, it
would lead to increased costs for our merchant acquiring services
with the current provider. Given the rising transaction volume and
value, there is an opportunity for cost savings. This would also
not be compliant with the Public Contracts Regulations 2015.