NASACT 2004 Annual Conference

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Pay Day How to Get Results from an Electronic
Payment Manager

• NASACT 2004 Annual Conference
• November 15, 2004
• Biloxi, Mississippi

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Mississippi History

• Initiation of Mississippi.gov 2001
• Enterprise portal for the State
• Enterprise payment processor
• Key component of infrastructure
• Flexibility required
• Integration with SAAS required
• Concept was true plug-and-play
• Heres what we had in mind. . . . .

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Enterprise Payment Concept
Still at the Agencies
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Electronic Payment Processing

• What are electronic payments?
• The processing of payments through electronic
  means
• What is Enterprise Payment Processing?
• Enables agencies to accept and process multiple
  payment types for different entities across the
  entire organization
• Why is it important?
• Enables governments to achieve and leverage
  economies of scale and scope
• Enables governments to streamline financial
  activities
• Enables governments to centralize control of the
  process to improve maintainability and support

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Practical Considerations

• Solution should allow a choice of banks and
  payment service providers
• Solution should support multiple payment methods,
  including ACH and e-checks to give more options
  to citizens, thereby increasing usage
• Passing convenience fees or other charges along
  to users suppresses usage levels
• Solution should help streamline financial
  reconciliation through tight integration with
  your existing financial system
• Solution should provide strong Enterprise and
  agency-level reporting
• Solution should provide flexible integration with
  client applications (Web Services/SOAP, Java,
  COM) to support the technologies in place at
  various agencies

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Technical Lessons
Applications can be hosted in same facility or
remotely
Applications can be developed by 3rd party
vendors and access PaymentEngineTM via APIs
Written in Java for platform independence
Uses high bandwidth, high speed connections to
PSP and/or banking network
All ANSI SQL databases supported (Oracle, MS SQL
Server, DB/2, etc.)
Easy integration to back office systems
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Applications using Payment Engine
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What Is Payment Engine
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What Is Payment Engine

• Real time payment authorizations (todays
  implementation)
• Visa and MasterCard credit and debit cards
• E-check
• Automatic payment settlement/deposit with States
  designated bank
• Integration with SAAS (SPI)
• Voids
• Refunds
• Automated return/chargeback processing
• Current Mississippi Implementation
• Financial reporting
• Payment tracking/audit trail with unique
  confirmation numbers
• Secure hosted service

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What Is Payment Engine

• PE daily extract feeds settled data to the SAAS
  Payment Interface (SPI)
• SPI generates CC documents
• Specialized SAAS cash receipt documents
• Gross settlement amount posted
• Remain on SUSF until funds hit Treasurys bank
  account
• Net settlement
• ACH transfer
• Deposited to Treasurys bank account
• Processing fees
• Recorded as an expense to Paymentech
• EzGov fees billed monthly
• Unbudgeted/unappropriated DFA fund
• Collects convenience fee deposits
• Records expenses of transaction processing costs
• Reports
• SAAS Activity Report
• Enterprise Settlement Report
• Agency Settlement Report

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What Is the SPI

• SPI SAAS Payment Interface
• Defines Payment Allocations
• Agency transaction
• Flat amounts and percentages
• Full accounting line distribution
• Agency handling fees
• Convenience fees (to DFA fund)
• Paymentech expense (to DFA fund)
• Effective dated
• Imports payment extract (settlement) file from
  EzGov
• Exports transactions to SAAS with appropriate
  distributions
• Works so well we plan to piggyback other
  settlement processes

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(No Transcript)
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What Applications and When?
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Payment Tracker
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Agency Settlement Report
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Enterprise Settlement Report
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Whats Next

• Payment Manager Migration
• Web-services front end
• APO/FPO address options
• Additional testing facilities with EzGov
• Reporting Database
• Activity Report
• Deposit Report
• Ad hoc reporting
• Partial refunds
• International currency handling
• American Express payment option
• Discover Card payment option
• ACH debit transactions
• Similar to e-check but with fewer validations
  done at the front end
• Good option for establishing recurring debit
  transactions for applications  

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For More Information
Christie Acker Account ExecutiveEzGov,
Inc.[phone] cacker_at_ezgov.com
Cille Litchfield Chief Systems Information
Officer Department of Finance and
Administration [phone] litchc_at_dfa.state.ms.
us