PRF82:  American Express Electronic Payment Processing Services: This is the Statewide Contract (SWC) with American Express to process and settle American Express branded payments. This contract can be leveraged for card services by eligible entities with a direct merchant relationship with Amex, either at the point of sale or online. Engaging with American Express directly eliminates additional fees associated with third-party service providers in certain business cases.

Departments are instructed that any application, medium, process, software, hardware, application, or other medium that collects, handles, processes, transmits, or remits Commonwealth revenues that are recorded in the state accounting system (MOSAIC) must be approved by the Comptroller to ensure compliance with state finance law, including security and internal control considerations to prevent fraud, waste, and abuse. Any Department that is planning on procuring or instituting any process, application, software, hardware, or other medium that will collect, handle, process, transmit, remit or in any way touch revenue in any form must be approved in advance of implementation, procurement, vendor selection, or use. The Comptroller reserves the right to review any system or process currently in use to review compliance with state finance law, including security and internal control considerations to prevent fraud, waste, and abuse, and the Comptroller may make any recommendations for remediation or corrective action plans. Departments with any questions or seeking review should email: eRev@mass.gov

Master Blanket Purchase Order (MPBO) with RFR

Benefits and Cost Savings

Statewide contracts yield benefits for your organization by leveraging the Commonwealth’s buying power, solicitation process, contracting expertise, and vendor management and oversight.

The electronic payment processing vendor provides the following services, benefits, and cost savings:

• Establish merchant accounts to enable acceptance of American Express cards.
• Process and settle American Express branded transactions.
• Improve customer experience and convenience.
• Provide competitive per item discount rates.

This American Express contract leverages the significant volume of Commonwealth eligible entities to procure the best for stakeholders, both now and in future years. 

Please note that this Contract provides processing and settlement for American Express branded transactions only. Other related statewide contracts:

• PRF81 with Worldpay is a related contract that supports Visa, Mastercard, and Discover credit, debit, and ACH payment processing. Worldpay conveys Amex branded transactions at point of sale to Amex for processing and settlement. PRF82 (this contract with Amex) is usually leveraged together with PRF81 if the eligible entity wants to offer Amex as a payment method.
• PRF84 is a related contract that supports payment solutions such as web payment page hosting, integrated voice response (IVR), kiosk, and mobile services. If utilizing services of the Payment Solutions Contract, a separate Statement of Work is required, and eligible entities may opt to offer American Express as a payment method. For direct merchant relationships, the eligible entity will be billed directly by Amex. Please see the PRF84 – Payment Solutions Contract User Guide for more information.
  

The following is a complete list of the types of organizations generally allowed to use the Operational Service Division’s (OSD's) Statewide Contracts (SWCs). Some SWCs may be open to additional organizations, and some are more restricted in usage.

• Cities, towns, districts, counties, and other political subdivisions
• Executive, Legislative, and Judicial Branches, including all departments and elected offices therein
• Independent public authorities, commissions, and quasi-public agencies
• Local public libraries, public school districts, and charter schools
• Public hospitals owned by the Commonwealth of Massachusetts
• Public institutions of higher education
• Public purchasing cooperatives
• Non-profit, UFR-certified organizations that are doing business with the Commonwealth
• Other states and territories and their cities, towns, districts, counties, other political subdivisions, and public institutions of higher education without prior approval from the State Purchasing Agent 
• Other entities when designated in writing by the State Purchasing Agent
  

This is a fee for service contract. Please refer to the Agreement for American Express Card Acceptance for complete pricing information found here: PO-23-1080-OSD03-SRC02-27135.

All costs must be part of this authorized price listing. Under no circumstances can the vendor change costs to exceed those posted in the Agreement for American Express Card Acceptance, attachments, or amendments.

How to Pay the Vendors

Encumbrances for all associated fees payable to American Express must reference PRF82. Entities must encumber sufficient funds for anticipated costs for the fiscal year and monitor expenses to ensure sufficient funds are available to make payments for all transaction fees.

Netting Fees Not Permitted Under this Contract

Each eligible entity of the Commonwealth is solely legally and financially responsible for its own credit card activity and charges. The vendor shall have no separate right of recovery from the Office of the Comptroller, the Operational Services Division, or the Commonwealth for any credit card charges incurred by an entity.

Pursuant to the Massachusetts Constitution and M.G.L. c. 30, s. 27 and M.G.L. c. 10, s. 17B, all revenue collected on behalf of the Commonwealth must be deposited with the Treasury and unless otherwise specified, is subject to appropriation. Therefore, as stated in the RFR, the total of all revenues collected must first be deposited and accounted for in the state accounting system prior to payment of fees being made to the vendor. In addition, for most eligible entities, the authorization for the collection of revenue does not authorize a portion of the revenue to be used for processing fees and fees will be paid from a separate state appropriation. Therefore, the vendor may not net fees from gross revenues collected in a Depository Account. For the purposes of this contract, chargebacks will not be considered fees and may be netted from gross revenues collected in a Deposit Account. Amounts collected and deposited will be considered revenue after settlement and any adjustments for chargebacks made by the vendor. Fees, charges, late payments, or interest may not be netted from revenues, even if authorized by an individual entity.

If debiting of accounts is occurring, it is without approval of the Office of the Comptroller and may not continue. No single entity or state agency is authorized to override this language without prior written approval of the Office of the Comptroller. Invoices may not be submitted with debits or netting of fees. All amounts collected must be deposited in gross and the contractor will be paid based on invoicing. All accounts will be reviewed, and a compliance plan established to comply with this section.

The vendor has no authority to establish a reserve account for Commonwealth Entities without prior CTR approval and shall have no security interest in amounts credited as revenue to the Commonwealth after final settlement and adjustments for chargebacks. If the vendor has reasonable grounds to be insecure about an entity's ability to make required fee payments, the vendor may submit in writing to the Office of the Comptroller, a request that the entity maintain a Reserve Account at a financial institution acceptable to the vendor unless the Office of the Comptroller can propose an acceptable alternative which ensures payment. If the applicable entity does not maintain a Reserve Account at a financial institution acceptable to the vendor and the Office of the Comptroller does not propose an acceptable alternative which ensures payment, then vendor may immediately suspend and/or terminate Card acceptance for such Entity. Any Reserve Account will be separate from an Entity's Deposit Account.

In lieu of standard security interests, an entity may be required to provide the vendor with proof that funds have been encumbered and set aside in the name of the vendor on the Commonwealth accounting system sufficient to support the anticipated amount of fees and costs that may be incurred for that fiscal year. Whenever possible, an entity will provide the vendor with notice at least 30 days in advance of a fiscal year or at any time during the fiscal year that sufficient funds may not be appropriated or otherwise made available by the Legislature. In the event that sufficient funds are not appropriated or otherwise made available by the Legislature for an entity(s), either the Commonwealth or vendor may suspend or terminate the electronic payments program for the applicable entity upon written notice to the other.

All fees, fines, and other charges must be invoiced monthly to the appropriate entity. Disputed claims will be considered a fee or charge to be invoiced.

Performance and Payment That Goes Beyond Contract End Date

The extend beyond period is in place to allow performance and payment obligations under a contract to continue after the contract term has ended. This period is primarily used to aid the transition between an expiring contract and its replacement and to ensure the continuity in service delivery.

For extend beyond, the following stipulations are in place:

• Buyers may not enter into a written agreement that will go more than twelve (12) months beyond the maximum end date of the contract. Existing services may be completed and payments made during this period.
• No new agreements, including leases, rentals, or service contracts, may be made after the contract's expiration.
• Agreements established prior to the Master Agreement expiration may allow performance and payment obligations to continue until the maximum Extend Beyond date.
  

COMMBUYS is the Commonwealth of Massachusetts' e-procurement platform, serving as a central marketplace for state agencies and other Eligible Entities to procure goods and services, connecting government buyers and businesses. It aims to streamline the purchasing process, ensuring transparency and efficiency in the procurement process.

For Executive Agencies, COMMBUYS is required. Per 801 CMR 21.00, Executive Agencies must use established Statewide Contracts (SWCs) for the purchase of products and services. To set up a COMMBUYS buyer account or to update an existing agency account, the buyers must contact the COMMBUYS Help Desk at: 888-627-8283 or OSDhelpdesk@mass.gov.

While COMMBUYS use is not mandated for Non-Executive Agencies and other Eligible Entities, it is highly recommended to streamline the procurement process and assist buyers in making informed purchasing choices. Eligible entities should follow their internal guidelines for COMMBUYS use.

This is a fee-for-service contract.

How to Get Started for New Engagements

1. Eligible entities should review this document (Contract User Guide) to ensure compliance with use of the Statewide Contract. Both eligible entities and the vendors have responsibilities for compliance with state finance laws, regulations, and rules, and are required to notify CTR when beginning a new engagement.
2. Contact Office of the Comptroller (CTR) eCommerce Coordinator at eRev@mass.gov to discuss requirements. Contract documents including the Agreement for American Express Card Acceptance is available on COMMBUYS.
3. The CTR eCommerce Coordinator will facilitate enrollment and boarding and coordinate a kickoff conference call to discuss detailed functional requirements, timeline, and scope, if required.
4. All payments for this contract made by State entities in the state accounting system MOSAIC must reference PRF82. If a transaction override is needed to encumber funds for engagements entered into prior to the end date of the contract, but extending beyond the end date, the entity should work with the CTR Contracts team to facilitate the encumbrance, and contact eRev@mass.gov to validate the use of the Statewide contract for an engagement.
   

Terms of the Contract

If this contract is utilized with the Payment Solutions Contract, a Statement of Work will also be required. Please see the Contract User Guide for Payment Solutions Services and/or, contact the CTR eCommerce Coordinator for more information.

Additional non-conflicting terms related to service performance details that comply with the required terms of the Contract may be added to a SLA or SOW provided the intent or effect of the language does not supersede or replace the language of the Contract.

Funding and Fees

This is a fee for service contract. Each eligible entity accepting electronic payment processing services will be billed by American Express and shall be solely legally responsible for funding the entity’s obligations under the contract.

The vendor may not seek payment of such obligations from the Office of the State Comptroller or any other Commonwealth entity, nor shall any Commonwealth entity have any legal obligation to make payments for services other than the entity requesting and accepting such services. Pricing is based on the options each entity chooses to implement. Commonwealth eligible entities may not negotiate separate terms from those included in this Contract without prior written approval from CTR.

If needed, entities should work with the CTR eCommerce Coordinator and electronic payment processing vendor(s) to determine an estimated amount of fees and other costs for each fiscal year based upon historical or anticipated electronic payments usage. As a condition of the contract, entities must encumber at the beginning of the fiscal year referencing PRF82designatedCTR, an estimated amount for transaction fees based upon the anticipated volume of transactions. State departments must coordinate encumbrances with CTR to prevent disruption of service.

The options for funding electronic payment solutions programs are:

• Operating Budget -- When an entity agrees to accept electronic payments, the entity certifies that prior to the beginning of each fiscal year, and during the fiscal year, the entity shall be responsible for taking the necessary steps to ensure that there are sufficient funds for payment of associated fees. Entities will be required to suspend acceptance of electronic payments whenever the entity anticipates not having sufficient funds to pay the processing fees. Seeking funding after the fact through the deficiency process or prior year deficiency process shall not be considered an appropriate funding mechanism and may subject the entity to cancellation of merchant approval to accept credit or debit payments.
• Retained Revenue – Retained revenue accounts are subject to annual budget approval and require a cap in the amount of funds that may be retained and expended. Given that revenues for new types of e-payments cannot be accurately predicted, agencies may face situations when the cap is lower than needed to pay processing fees. Entities are responsible for ensuring that if fees are authorized to be spent from the retained revenue account that the cap is sufficient to enable full payment of fees.
• Statutory Language/Agency Trust Account – Some agency trust accounts authorize expenditures to be paid from revenues posted to the trust account. Entities must ensure that sufficient amounts are set aside from revenues to ensure payment of transaction fees and that these amounts are not inadvertently obligated for other expenditures.
• Convenience fees – (NOTE: Under Massachusetts law, convenience fees are prohibited at the point of sale but may be implemented over the web or IVR.) Eligible entities may choose to pay electronic payments program fees or may choose to fund their programs by passing the associated fees on to the customer. A nominal convenience fee is charged to the customer at the time of purchase and collected per transaction directly by the third-party vendor (on PRF59A) as a separate charge from the payment being made to the eligible entity. The fee can be a percentage of the transaction amount or a flat fee, but percentage-based convenience fee programs take longer to implement due to card association program rules. Convenience fees are collected and retained by the vendor, never enter the Commonwealth’s accounts, and appear as a separate charge on the customer’s statement. Since the fee is charged solely to offset the entire cost of the credit card transaction as a convenience to customers, an eligible entity will not receive an invoice from the vendor under this model.
  

Buyers can view contract documents on COMMBUYS without requiring a COMMBUYS account or logging in.  
To find contract documents in COMMBUYS, follow these steps:

1. On the COMMBUYS home page, enter PRF82 in the search tool and select Blankets from the drop-down list.
2. Select the Search icon. The related Master Blanket Purchase Orders (MBPOs) information opens in a table format. 
3. To view the associated contract documents, under the Blanket # column, select the applicable Purchase Order (PO) link. MBPO opens for the selected PO and the attachments can be found in the Agency Attachments or Vendor Attachments section. 

If applicable, to find vendor-specific documents, view the links to the individual vendor MBPOs on the Vendor Information page, and follow these steps:

1. On the Vendor Information page, select the applicable Purchase Order (PO) link. The Master Blanket Purchase Order (MBPO) opens for the selected PO.
2. If applicable, on the MBPO, scroll down to the Vendor Attachments section to find the vendor-specific documents.
3. To view, select the desired document link.

Please see the following guidelines:

• Vendor SDP commitment percentages can be found on the vendor list table.
• Executive Departments should use diverse and small businesses to the extent possible based on contract terms, Supplier Diversity Office (SDO), and departmental policies, laws, and regulations. 
• In cases where all other factors are equal, and particularly when adhering to a best value approach, the department will favor the vendor with a stronger SDP commitment
• The SBPP applies to small procurements (under $250,000 annually), while the SDP applies to large procurements (over $250,000 annually). Executive Departments must consider these requirements when soliciting quotes or issuing statements of work (SOWs).
• Operational Services Division (OSD) provides a list of SDP businesses through the Statewide Contract Index. See the Programs (SDO and SBPP) tab on the index (scroll to view the tab).
• For more information, see Best Value Evaluation of SDP Plan Forms: A Guide for Strategic Sourcing Teams .
  

Vendors' performance is measured by several factors, including the following:

• Buyers provide actionable feedback on vendors for this contract to optimize performance through the Procurated platform. On the Procurated website, click "Search for a Massachusetts Vendor to Review", then search for the vendor by name and select them from the list. Once you enter your professional email address, you will be forwarded to the review screen.
• Buyers are encouraged to reach out to the Category Manager(s) (Patricia Davis or Hayley Lebert or Tina Sang) if vendors are not meeting their contractual obligations and buyers may be surveyed for vendor performance feedback.
• Vendors will be evaluated on their current performance and may be asked to work with the Commonwealth toward improvement.
• Vendors must meet all contractual requirements throughout the life of the contract, including requirements for timely and accurate report submission, to remain in good standing under the contract.
  

For general procurement guidelines and best practices, follow these recommendations:

• Buyers should inform vendors to reference Statewide Contract PRF82 on all quotes and invoices.
• No prepayment should be made for products not yet delivered or services not yet rendered.
• No sales tax should be applied to invoices.
• No fees or surcharges (including travel, fuel, delivery) should be applied to invoices.
• Special order fees must be agreed upon by both parties upfront.
• Payments for products or services provided must be paid within 45 days per Massachusetts Bill Payment Policy, or sooner if applying Prompt Payment Discount.
• Buyers are not required to sign additional agreements with vendors that conflict with the Request for Response (RFR) Terms and Conditions. Contact the Category Manager(s) (Patricia Davis or Hayley Lebert or Tina Sang) for guidance. 
• Vendors must notify buyers of product substitutions.

To add a product or service to the list of eligible products or services sold under this contract, buyers must contact their Category Manager(s) (Patricia Davis or Hayley Lebert or Tina Sang) for approval. The new product or service requested must comply with the established specifications and scope of the contract.

When placing orders with a vendor, MOSAIC users must reference the contract ID number PRF82* in the Agreement ID field in MOSAIC for encumbrances related to purchases from Statewide Contracts. Please address all inquiries regarding MOSAIC technical support and job aids by emailing the Comptroller Help Desk or by calling 617-973-2468. 

*The asterisk is required when referencing the contract in the Massachusetts Management Accounting Reporting System (MOSAIC).

PCI Compliance

The Payment Card Industry Data Security Standard (PCI-DSS) is a mandatory compliance program of the major credit card associations to create common industry security requirements for cardholder data. The PCI-DSS is a multifaceted security standard that includes requirements for security management, policies, procedures, network architecture, software design, and other critical protective measures. PCI Compliance is required for all Commonwealth entities conducting electronic commerce, regardless of merchant level, channel, or method. This section provides information about our approach to meeting this challenge.

Accepting credit cards, each Commonwealth entity operates as a “merchant”. If the Commonwealth entity accepts electronic payments via any means (e.g., mail, mobile, cashier window, terminal, kiosk, telephone, IVR, or the web), then adherence to these standards is mandatory under payment card brand rules and current Comptroller policy. All State Departments are required to comply with and set aside sufficient funding to support the requirements outlined in the Payment Collection Data Security Policy.

The primary focus of the PCI standards is to help merchants (in our case, Commonwealth entities) improve the safekeeping of electronic payments information by tightening overall security. This overall review reduces the chances of experiencing security breaches, identity theft, stolen credit and debit card numbers, fraud, and potential financial losses, penalties, and loss of trust in Commonwealth public facing applications. Merchants found to be non-compliant with the respective security requirements may be subject to substantial fines and penalties in the event of a data breach. More information about PCI Compliance can be found at https://www.pcisecuritystandards.org/.