Vol 1 - Part 5 - Chapter 4700 (T/L 544) PLASTIC CARD COLLECTION NETWORK This chapter prescribes procedures to be observed by all Federal agencies, for establishing and maintaining accounts in the Plastic Card Collection Network (PCCN) and for processing Federal agency credit card and debit card receipts. Section 4710 - Authority Regulations governing this chapter are issued under 12 U.S.C. 265, 266, 1464(k), 1725(d), 1789a, 31 U.S.C. 3720(a). All funds are to be collected by Electronic Funds Transfer (EFT), which includes credit and debit cards, when cost effective, practicable, and consistent with current statutory authority. Financial Management Service (FMS) exercises its authority by using designated depositaries to support Governmentwide credit and debit card collection services. I TFM 6-8000 establishes the policy regarding cash management practices within the Federal Government concerning regulations, systems, and procedures. Section 4715 - Definition of Terms Agency - Any department, instrumentality, office, commission, board, service, government, corporation, or other establishment in the executive branch of the Federal Government. Agency Application - The initial document prepared by an agency and submitted to FMS, requesting an account in the PCCN. Agency Participation Agreement - The PCCN agreement that establishes the terms and conditions of the agency's participation in the Master Agreement between the FMS and the financial institution for Plastic Card services. Bank - A financial institution (FI) designated under 31 CFR 202 as a depositary and financial agent of the U.S. Government and authorized by FMS to perform plastic card collection services for Federal agencies. Chargeback - Transaction reversed by bank due to incomplete transaction information or inappropriate handling as prescribed in Master Agreement. Credit Card - Any valid card as prescribed in Master Agreement and Agency Participation Agreement, such as VISA USA or MasterCard-International. Debit Card (ATM CARD)- The name adopted by the industry for a card that authorizes a debit to a customer's banking account. The machine readable plastic card allows electronic withdrawals from checking or savings accounts via an ATM or enables a cardholder to make retail purchases at a merchant's location. Funds are transferred electronically to a merchant's account from the cardholder's account. Electronic Data Capture - Process by which point-of-sale (POS) terminals maintain (through internal memory) complete information on each credit or debit card transaction. For credit card transactions, this information can be electronically transmitted in batch mode at time of settlement to the plastic card bank. Financial Institution (FI) - See "Bank", above. These terms are synonymous. Master Agreement - An agreement signed by FMS and each FI in the Plastic Card Collection Network to provide plastic card collection services to Federal agencies. Network - The FIs authorized by FMS to provide credit or debit card collection services to Federal agencies. Each FI can provide service nationwide. Only these FIs are authorized to provide debit or credit card services to Federal agencies. Section 4720 - Plastic Card Services Offered Through the Network This section provides an overview of the debit and credit card services available to agencies. The basic debit and credit card services are provided to agencies at no cost (see I section 4735). 4720.10 - Authorization Services The FI provides for authorizing transactions electronically, by voice, or by paper (on-line debit card transactions must be authorized electronically). By authorizing the transaction, the agency ensures its validity by immediately determining that the card is not lost or stolen and that the user has sufficient funds in his or her credit line (or account, in the case of debit transactions). Agencies having more than 100 monthly credit card transactions must perform electronic authorization. Voice and paper authorization of credit card transactions should be used on an exception only basis as a backup to electronic authorization. Every transaction must be authorized and agencies should work with the FI to determine the most appropriate authorization technique. NOTE: If an agency is not performing the authorization properly (by procedure), all costs above the agreed upon method will be assessed to the agency. 4720.20 - Training Agencies will arrange with FI representatives to receive training in a "train the trainer" format. The trained agency officials will then teach other employees. This includes distributing operating guides, instructions, and other documentation. 4720.30 - Supplies Agencies will access the necessary supplies from the FI representative to process credit and debit card transactions. These supplies include sales drafts, imprinter plates, and promotional items. Prior to agency implementation, agencies will ensure that FIs deliver these supplies to each agency location, as needed. To expedite resupply, each agency should maintain a bulk supply at agency headquarters or regional locations. 4720.40 - Chargebacks Agencies will work with the FIs to resolve and minimize the occurrence of chargebacks, (transactions reversed by the cardholder FI, the cardholder, or the Network Bank). Agencies can avoid most chargebacks by ensuring that personnel are thoroughly trained in processing transactions and by processing transactions electronically. 4720.50 - Data Elements and Formats Agencies will work directly with the FIs to establish required data elements and formats so the FIs' systems properly interface with agencies' information systems to update accounts receivable. These services will be provided at no cost to the agency. Any additional, program-related data capture and transmission will be paid for by the agency. 4720.60 - Dedicated Communication Lines Agencies will seek the FIs' advice and assistance in procuring dedicated lines for electronic authorizations. The agency pays the costs for these dedicated lines. Depending on the agencies' needs and configuration, the FI provides appropriate advice on costs for each option. The FI will coordinate ordering, implementing, and installing dedicated lines with telecommunication companies. 4720.70 - Settlement Data/Activity Reports To meet its reconciliation needs, the agency will use deposit reports, provided by the FI. Agencies will inspect activity reports for accuracy, then report any discrepancies to the FIs and FMS. 4720.80 - Telephone Order Assistance Agencies shall consult with the FI to determine the most effective means of processing telephone credit card orders. Section 4725 - Application/Implementation Process Agencies should interview with all PCCN FIs to assess the FIs' understanding of an agency's program and its level of commitment to offering flexible services. Although each FI has signed an identical contract with FMS to perform PCCN services, an agency may find one FI to be more responsive to its particular needs. Agencies interested in accepting credit and/or debit cards should obtain applications from Network FIs or FMS. A completed application will be sent to FMS to be analyzed against the objectives shown in I TFM 5-4730. Once the application is approved by FMS, Agency Participation Agreements for either credit cards, debit cards, or both must be signed by the agency and FI. The Agreement then must be forwarded to FMS, for the final signature. An Agreement must be completed and signed by the agency, the FI, and FMS, before any joint work is begun by the agency and the FI. If the application is approved, the agency shall work with the FI to construct a customized implementation plan. The plan will include: o Agency profile (type of collection, potential volume, collection method (mail, phone, etc.)). o Information on agency locations (addresses/contact points). o Type of services (credit card, debit card, or both). o Training. o Followup program for quality assurance. o Technical specifications on equipment. o Equipment to be purchased by the agency from the FI. (See 4735.20.) o Implementation timeline milestones. o Special handling procedures. Including a list of ancillary services to be charged to the agency. o Authorization/deposit/settlement procedures. o Supplies required. o Chargeback and retrieval responsibilities. An Agency Participation Agreement documents an agency's participation in the Master agreement and outlines terms and conditions for accepting credit or debit cards in the agency. This agreement is a binding document between the agency, the FI, and FMS, and must be signed for FMS to pay for agency credit or debit card services. FMS will maintain the signed copy in its files. Section 4730 - Types of Credit and Debit Card Collections Subject to the provisions of 31 CFR 206, agencies can accept debit and credit cards for various collection activities, outlined in the following subsections. 4730.10 - Sales/Services Some examples of sales or services applications for which FMS may approve the use of debit or credit cards are: o Sales (by mail and over-the-counter) of miscellaneous items, such as publications, maps, charts, souvenirs, surveys, photographs, or films. o Medical services. o Freedom of information requests. o Inspection or grading services. o Commodity sales, (such as timber, oil). 4730.20 - Fees/Fines Some examples of fee or fine debit or credit card applications which FMS may approve are: o Inspection fees. o Criminal, civil, and court fees and fines. o Recreation user fees. o Duties. o Patent fees. o Registration fees. o License fees. 4730.30 - Debt Repayment FMS may approve the acceptance of debit or credit cards to collect monies due from (1) extending loans for housing, education, health care, agriculture, and business, (2) repaying of duplicate benefits, (3) travel advance repayments, and (4) other administrative collections. Section 4735 - Compensation/Agency Expenses 4735.10 - Costs Paid by FMS When funds are deposited to the General Fund and not withdrawn for investment, FMS will pay the costs for-- o Processing each debit and credit card transaction. o All per-transaction-call charges assessed by the FI for authorization and settlement. o Chargeback assistance. o Deposit reporting through the CA$H-LINK system. o Initial "train the trainer" instruction as described in paragraph 4720.20. o Supplies, as described in 4720.30. o Deposit reports showing cardholder account number, transaction amount, and date. A monthly expense report and management monitoring report will be sent to FMS from each Network FI detailing the number of transactions processed, the status of each agency's PCCN activities, and the accompanying costs. 4735.20 - Costs Paid by Agencies The agency shall pay for-- o Equipment - namely, electronic data capture/point of sale (EDC/POS) terminals with attached printers, PIN pads and software, PCs, modems and imprinters. o Standard voice-grade telephone line installation and monthly charge. o Dedicated lines deemed necessary for an agency in a high volume, high-pressure, point-of-sale environment, such as, checkout lines at large retail outlets. o Any international authorization/settlement charges above domestic charge rates paid by FMS. o Extra services beyond those specifically defined and priced in the Master Agreement, such as detailed training beyond the "train-the-trainer" format. o Customized reports such as those that list product codes. Network FIs will assist each agency in determining the most appropriate equipment. In many cases, existing equipment, such as a personal computer, may be sufficient for credit card authorization and settlement transactions. As the provider of plastic card collection services, the FI provides technical expertise in reviewing and approving the agency's proposed equipment configuration. FMS recommends that agencies inquire about the many types of authorization and settlement functions. Section 4740 - Deposit Regulations Agencies must comply with the provisions of 31 CFR 206.5 contained in I TFM 6-8000, which require that deposits be made prior to the depositary's specified daily cutoff time, but as late as possible, to maximize daily deposit amounts. Each FI informs the agency of its particular cutoff times. In an electronic environment, this means a settlement transaction should take place through an EDC/POS at various times during the day (or once at the close of business) in order to meet the FI's cutoff time for deposit. FMS strictly prohibits holding credit card deposits above the daily $5,000 limit. Agencies should not accumulate daily receipts of more than $5,000 after the FI's daily cutoff time if they are operating in a paper sales draft settlement mode. If the agency is operating in an electronic data capture (EDC) mode, it must settle on a daily basis, regardless of the amount accumulated that day. Agencies will pay the assessed non-qualifying interchange fee if they fail to settle electronically everyday. Section 4745 - Agency Monitoring Requirements 4745.10 - General The agency is responsible for accounting requirements of all transactions and funds transferred. Agencies must monitor performance daily to ensure quality service, reconciliation of detail remittance data, and timely funds transfer. Agencies prepare necessary financial statements and reports to FMS (I TFM Part 2). 4745.20 - Deposit Information Agencies use the Agency Access function of the CA$H-LINK to retrieve information about deposits. Agencies will receive an SF 215 deposit ticket with support listing described in the CA$H-LINK User's Guide. Agencies will reconcile the deposits reported on Agency Access to the SF 215 deposit tickets received from the FIs. NOTE: If an agency does not have Agency Access to the CA$H-LINK system, they should contact FMS and request an application (see Contacts page). 4745.30 - Reconciliation Inquiries The agency will pursue inquiries on reconciling detail data/documents directly with the FI customer representative. However, long-term operational problems should be reported to FMS (see Contacts page). 4745.40 - Funds Transfer The agency will inform FMS (see Contacts page) of failure by the FI to process payments promptly or failure to transmit funds, resulting in a delay in the availability to Treasury. 4745.50 - Evaluation The agency responds to periodic Treasury surveys for evaluation of services being provided by both FMS and the Network FI. CONTACTS Agencies are encouraged to contact their FMS cash management liaison concerning questions on the Network and to obtain copies of the Agency Participation Agreement. Initial inquiries should be made to the Product Promotion Division or your regional FMS Customer Assistance Staff (CAS): Department of the Treasury Financial Management Service Product Promotion Division Liberty Center (3rd Floor) Washington, DC 20227 (Telephone 202-874-6540) Austin: Financial Management Service CAS P.O. Box 149058 Austin, TX 78714-9058 (Telephone 512-482-7211) Birmingham: Financial Management Service CAS P.O. Box 2451 Birmingham, AL 35201-2451 (Telephone 205-290-7234) Chicago: Financial Management Service CAS P.O. Box 8670 Chicago, IL 60680-8670 (Telephone 312-353-2364) Kansas City: Financial Management Service CAS P.O. Box 3329 Kansas City, KS 66103-0329 (Telephone 913-236-3305) Philadelphia: Financial Management Service CAS P.O. Box 8676 Philadelphia, PA 19101-8676 (Telephone 215-516-8001) San Francisco: Financial Management Service CAS P.O. Box 193858 San Francisco, CA 94119-3858 (Telephone 415-744-7433) Washington Branch Office: Financial Management Service CAS Prince George Center, Bldg. 2 3700 East West Hwy. Rm 245C Hyattsville, MD 20782 (Telephone 202-874-8880) After an account is implemented, inquiries concerning daily operations should normally be directed to the Network FI and the Regional Customer Assistance Staff representative. However, matters concerning the agreement and special/recurring issues should be directed to: Department of the Treasury Financial Management Service Financial Services Division Liberty Center (4th Floor) Washington, DC 20227 (Telephone 202-874-6580) Questions relating to Deposit Information (paragraph 4745.20) should be directed to: Department of the Treasury Financial Management Service Banking Management Division Banking Operations Branch 3700 East-West Hwy., Rm 5A08 Hyattsville, MD 20782 (Telephone 202-874-6900)