The Cabinet Member for Finance and Corporate Services, Councillor Dana Carlin, is scheduled to consider a report concerning the re-procurement of merchant acquirer services. This meeting will also address the direct award of a contract related to these services.

Merchant Acquirer Re-Procurement and Direct Award of Contract

A key item scheduled for discussion is the re-procurement of merchant acquirer services, which are essential for the council to process debit and credit card payments. These services are critical for collecting income from residents, businesses, and partners, handling approximately £86 million in annual card income. The report indicates that current arrangements are no longer financially sustainable, with projected costs significantly exceeding the available budget, creating an ongoing revenue pressure and a value-for-money issue.

The report outlines that the current merchant acquiring arrangements support multiple payment channels, including online, telephone, and face-to-face transactions. Any changes must maintain integration with existing payment gateways and line-of-business systems, while also ensuring compliance with Payment Card Industry Data Security Standards (PCI DSS) and public procurement regulations. This is described as a commercially focused re-procurement exercise aimed at securing improved pricing and contractual terms, with the objective of reducing revenue pressure, improving value for money, and providing greater cost certainty without disrupting income collection processes.

The recommendations within the report include approving the commencement of a procurement exercise for a merchant acquirer service and proceeding with the award of a contract to Global Pay for a term of two years at a value of £980,000. This is proposed to be done via a direct award under an approved Framework, with the incumbent provider. The report highlights that the revised commercial terms are expected to reduce the council's annual merchant acquiring cost 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 details that the proposed approach aligns with the council's corporate priorities, including ensuring value for money and financial sustainability, strengthening financial resilience, and delivering efficient, resident-focused services. It is noted that the use of the Crown Commercial Service (CCS) Framework 6325 Payment Acceptance, Lot 1, with the incumbent provider, is seen as a compliant and efficient route to market, offering reduced procurement timelines and access to pre-qualified suppliers.

The report confirms that internal consultation has been undertaken with Finance, Digital and Technology teams, and Procurement. Service leads have confirmed the essential nature of card payment capability for service delivery and customer experience, with residents increasingly expecting accessible digital payment channels. The proposal is not expected to reduce services or change how residents pay, but rather to improve value for money.

The report also addresses potential risks, including financial, operational, and reputational risks, and outlines mitigations such as using a compliant Framework route and maintaining the incumbent provider to reduce transition risk. The contribution to the Corporate Delivery Plan 2022-2024 is also noted, specifically in strengthening financial sustainability and ensuring robust income collection arrangements. There is no direct impact on carbon emissions or climate change anticipated from this decision.

The report includes comments from statutory officers. The Director of Finance confirms that the estimated cost of the contract will be funded from existing provision within the bank charges budget and resolves an existing budget pressure. Procurement confirms the compliance of the CCS Framework RM6325, Lot 1, with relevant legislation and the council's Contract Standing Orders. The Director of Legal and Governance (Monitoring Officer) has been consulted and sees no legal reasons preventing the approval of the recommendations. An equality screening has been conducted, and no direct adverse impacts on protected groups have been identified, with the proposal maintaining secure and reliable card payment facilities.

The meeting is scheduled to be held on Wednesday, 6th May, 2026, at 9:30 am at Alexandra House, 10 Station Road, N22 7TR. The meeting may be filmed or recorded.