Item 09 - Payment Processing Services
West Dunbartonshire Council · 13 August 2025
Back to Corporate Services Committee — 13 August 2025 and its agenda
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer - Resources Corporate Services Committee: 13 August 2025 Subject: Payment Processing Services 1. Purpose 1.1 The purpose of this report is to seek Committee approval to initiate a formal procurement process for West Dunbartonshire Council’s (the Council) and West Dunbartonshire Leisure Trust’s (the Trust) Payment Processing Services. 2. Recommendations 2.1 It is recommended that Committee: a) approves the initiation of a formal procurement process for the Payment Processing Service for the Council and the Trust for a 3 year period from 1 April 2026 until 31 March 2029 with an option to extend for a further two additional up to12 months until 31 March 2031 and delegates authority to the Chief Officer: Regulatory and Regeneration to conclude, on behalf of the Council, the award of the contract for the Provision of Payment Processing Services subject to the Chief Officer Resources being satisfied as to the terms offered. b) notes the direct award of the Merchant Card Acquiring Service to Worldpay. 3. Background 3.1 Following a tender exercise in 2021, the current provider for Payment Processing Services was appointed for a period of 2 years with an option to extend for a further 2 * 12 months to 31 March 2026. 3.2 The Payment Processing Service provides residents and businesses with the facility to pay Council Tax, Debtors and Rent at post office and pay- point outlets. 3.3 The Council now requires to renew this facility for the Payment Processing Services. 3.4 The merchant card acquiring service which facilitates the receipt, transfer and accounting of incoming payments from cardholder’s present and not present transactions at different Council locations was awarded to ITEM 9
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Worldpay Limited after delegated authority was provided by both the Chief Officer-Resources and the Chair of Corporate Services Committee early 2024 and the contract commenced 2 February 2024 until 1 February 2028. 3.5 Given the timescales for the new contract to be in place and to provide best value to the Council; a Direct Award under the Crown Commercial Service Framework Agreement for the Merchant Acquiring Services represented the best procurement procedure. An award was made based on urgency with a report to the subsequent committee (Corporate Services) anticipated, to note the exercise of the authority in accordance with Standing Orders 35(b)(iii) and (iv) – “(iii) Such decisions will be referred to Council, or the appropriate Committee, except in the case of urgency, where the officer may, after consultation with the relevant Service Spokesperson or Convener of the appropriate Committee, exercise such delegated powers. (iv) Should such powers be exercised in urgent circumstances, a report will be submitted to the next appropriate Committee for noting.” Through an oversight at the time the subsequent report was not made and so the opportunity is now being taken to notify Committee to purify the Standing Orders requirement. 4. Main Issues 4.1 It is essential that a new contract for Payment Processing Services is in place to commence 1 April 2026. There is a lead in time of around 12 weeks to transfer from one provider to another to ensure a seamless process of continuation of service. 4.2 Based on current levels of use of these payment types it’s estimated that the aggregate value of this contract over the period of this contract for the Council may exceed the Public Contract (Scotland) Regulations 2015 Threshold of £213,477. 5. People Implications 5.1 There are no people implications. 6. Financial and Procurement Implications 6.1 The financial implications will depend on the level and extent of the service utilised by the citizens of West Dunbartonshire Council however, there is an ongoing budgetary provision to meet the current level of expenditure. Payment options provided to citizens of the Council are being reviewed on an ongoing basis to ensure that, as an organisation, we offer facilities to ensure that all citizens have access to at least one payment method.
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6.2 All procurement activity carried out by the Council in excess of £50,000 is subject to a contract strategy. The contract strategy for the payment processing service will be produced by the Corporate Procurement Unit in consultation with Finance officers. The contract strategy shall include but may not be limited to; contract scope, service forward plan, the market, procurement model and routes – including existing delivery vehicles such as national collaborative framework, roles and responsibilities, risks, issues and opportunities and ongoing contract management. 6.3 The payment processing service will contribute to delivery of the Council strategic priorities through the provision of fit for purpose services on a best value basis. Further opportunities to maximise the positive social, economical and environmental impact for West Dunbartonshire through the contract will also be explored, e.g. through the use of Community Benefit Clauses. 7 Risk Analysis 7.1 If the contract is not awarded we will not be compliant with the Council’s Procurement Policy as we will require to continue with such services under an expired arrangement. The existing supplier will be able to continue to deliver the service. However, the prices may be subject to fluctuation and may no longer be competitive. 7.2 Having a contract in place enables the prices to be set for a fixed period of time and formal terms and conditions to be put in place, to ensure that the Council and the Trust receive best value. 7.3 Proceeding with the current supplier through a new compliant contract reduces risk of service disruption and costs associated with change. 8 Equalities Impact Assessment (EIA) 8.1 No significant issues were identified in a screening for potential equality impact of this service. 9 Consultation 9.1 The report has been subject to consultation with appropriate Strategic Leads. 10 Strategic Assessment 10.1 Sound financial practice and budgetary control are imperative to assist with the governance of the Council and supports officers of the Council in achieving the five strategic priorities. The General Services revenue budget contributes to all categories by providing funding in specific areas to help the Council achieve and develop these priorities. 10.2 The provision of payment processing services will contribute to delivery of the Council strategic priorities through efficient and effective frontline services that improve the everyday lives of residents. Further opportunities to maximise the
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positive social, economical and environmental impact for West Dunbartonshire through the contract will also be explored, e.g. through the use of Community Benefit Clauses Laurence Slavin Chief Officer-Resources Date: 16 July 2025 Person to Contact: Karen Shannon, Section Head (Financial, Administration & Control) Church Street, Dumbarton Telephone 07584 475469 Email: Karen.Shannon@west-dunbarton.gov.uk Appendices: None Background Papers: Equality Impact Assessment Wards Affected: All Council Wards