Democracy Spraffa

Item 09 - Payment Processing Services

West Dunbartonshire Council · 13 August 2025
Back to Corporate Services Committee — 13 August 2025 and its agenda

Text extracted from the council's PDF. Layout and reading order may differ from the original.

Original council PDF · Download plain text

Page 1

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

Page 2

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.

Page 3

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

Page 4

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