ELECTRONIC PAYMENTS

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ELECTRONIC PAYMENTS Robert Peters rpeters090664_at_h
otmail.com (845) 264 - 9970
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ELECTRONIC PAYMENTS
Debit cards
Credit Cards
Wire Transfer
Bank by phone
Bulk Payment
Direct Withdrawal
Internet Payments
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Credit/Debit Card Payments
Chapter 325 PL 1995 amended N.J.S.A 40A5-43 the
law authorized DLGS to establish regulations
for municipalities to accept electronic payments
In early 1997 the regulations were complete,
published and became part of the New Jersey
Administrative Code N.J.A.C. 530-9.1 thru
530-9.10
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Who may take Electronic Payments
Municipal Tax Collectors Municipal
Utilities Libraries
Recreation Departments Construction
Code Offices Municipal Courts were allowed by
separate legislation
The law does not allow Municipalities to
pay obligations with credit cards
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Credit Card PaymentsThe Regulations
Allows local units to pass a resolution to
accept credit/debit cards Requires a budget line
item to cover any costs
Adequate receipts records must be kept
Deposits to be made within 72 hours
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Credit Card PaymentsThe Regulations (cont.)
Payments may be accepted in person, online or by
phone
A third party collection service may be used.
Third party collection companies will charge a
convenience fee to the tax payer who uses this
service No charge to the Municipality
Typically fees charged the user run from 2 to
3.5 on credit cards And fees for Automated
Clearing House ( ACH) run 2.00 to 3.00
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Wire Transfer
Wire Transfer was permitted in the same finance
notice That allowed credit card payments.
The state considers a wire transfer to be a cash
payment.
A Wire Transfer can be used for payment of
Taxes Lien Redemption Payment at tax
sale Any other municipal debt
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Wire Transfer (cont.)
You will need to provide your bank account number
Your banks routing number
Transfers normally only take hours
Wire room at banks are open until 5 pm
A confirmation number will be issued once on
route and you can request a copy from the sender
You can call the bank periodically to check on
arrival
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Bank by Phone Bank Checks
This process is between the taxpayer and their
bank
Tax Collectors should advise their taxpayers that
they should make sure that the bank prints the
block lot on the check
Taxpayers must be very careful that these types
of payments are delivered on time to the Tax
Collector!!!
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Internet Payments
Take real-time payments via credit cards and
electronic checks

• internally grown solutions
• proprietary web applications
• third party applications

• taxpayer convenience
• accuracy
• security of transactions/information
• settlement

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PCI DSS Compliance

• Supersedes CISP
• Regulates processors to maintain cardholder
  security procedures
• PCI DSS compliant processes
• PCI DSS compliant providers
• Approved applications/providers available online

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NACHA

• National electronic check regulatory body
• Governed by depository financial institutions
• ODFI/RDFI rules, procedures and standards for
  transactions and settlement
• Direct Deposit real world example

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Education
What to consider when online payments become an
objective

• MC/VS/AX/DC
• ACH
• Interchange Rates
• Communication Fees

• Who will pay for the service?
• Municipality as a Merchant
• Bank association
• Data security versus open portal

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Taxpayer Authorized Payments AKADirect Debit
Taxpayer pre-authorized credit card or ACH payment

• Taxpayer submits signed form to tax collector
• If CC provides CC type, number exp date
• If ACH provides routing no acct no
• Form authorizes tax collector to process payment
• Form provides date span in which payment will
  occur
• Taxpayer does not need to be present

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RCP Consulting

• Conduct Cost/Benefit Analysis (CBA)
• Write Municipality Request for Proposals (RFP)
• Review RFP Responses / Provide Recommendations
• Contract Review
• Ongoing Process Audits
• Contact Robert Peters at rpeters090664_at_hotmail.com
  or 845.264.9970