Decision details

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.