The Cabinet Member Signing meeting was scheduled to discuss the re-procurement of merchant acquirer services. This is a critical function for the council, enabling it to process card payments for various services.

Merchant Acquirer Re-procurement and Direct Award of Contract

The meeting was scheduled to consider the re-procurement of the council's merchant acquirer services. These services are essential for processing debit and credit card payments across all council services, handling approximately £86 million of annual card income. The current arrangements are reported to be financially unsustainable, with projected costs significantly exceeding the available budget, creating a material revenue pressure and a value-for-money issue.

The report pack indicated that the objective of the re-procurement is to secure a financially sustainable and compliant merchant acquiring arrangement. This involves maintaining integration with existing payment gateways and line-of-business systems while ensuring compliance with Payment Card Industry Data Security Standards (PCI DSS) and public procurement regulations. The aim is to reduce revenue pressure, improve value for money, and provide greater cost certainty without disrupting income collection processes.

It was recommended that the Cabinet Member for Finance and Corporate Services, Councillor Dana Carlin, approve the commencement of the re-procurement exercise. Furthermore, it was recommended to approve the award of a contract to Global Pay for a term of two years at a value of £980,000. This would be achieved through a direct award under an approved Framework, specifically the Crown Commercial Service (CCS) Framework RM6325, Lot 1. The report highlighted that this approach is expected to reduce annual costs from approximately £1.02 million to £490,000, delivering savings of around £530,000 per annum and addressing the current budget gap.

The report also noted that continuing under the existing terms would result in an ongoing budget overspend of over £500,000 per annum, making it financially unsustainable. An alternative of a full open procurement exercise was considered but deemed to require significant officer time, specialist resources, and could introduce implementation and transition risks, potentially disrupting income collection. The recommended option of using the CCS Framework with the incumbent provider, Global Pay, was presented as balancing cost reduction, compliance, deliverability, and risk.

The proposal was stated to align with the council's corporate priorities, including ensuring value for money, financial sustainability, and delivering efficient, resident-focused services. It was also noted to be consistent with the principles of the Haringey Deal, particularly regarding transparency about financial pressures and working collaboratively with partners. The report indicated that the re-procurement is a financial and commercial decision with no direct impact on carbon emissions, though maintaining digital payment channels can indirectly support reduced reliance on more carbon-intensive in-person processes.

Statutory officers, including the Director of Finance, Head of Legal and Governance, and the Equalities team, provided comments. The Finance department confirmed the estimated cost would be funded from existing provision within the bank charges budget and that the re-procurement resolves an existing budget pressure. The Procurement team confirmed the CCS Framework route is compliant with the Public Contracts Regulations 2015 and the council's Contract Standing Orders. The Legal department confirmed the proposed actions align with the council's Contract Standing Orders and that the Monitoring Officer saw no legal reasons preventing the approval of the recommendations. The Equalities screening identified no direct adverse impacts on protected groups, as the proposal maintains secure and reliable card payment facilities, supporting continued accessibility for residents.