5.1 "Agency" means any department, or office managed by an elected official of any branch of King County government. 5.2 "Automated clearing house" or "ACH" means an association of depository institutions that process financial transactions electronically through the Federal Reserve Bank.
5.3 "Business Application" refers to a specific electronic service or line of business offered by an agency, such as paying property taxes online or paying for a pet license online.
5.4 "Convenience fee" means a fee that is charged to a customer for the convenience of making an electronic payment. If a convenience fee is charged to a customer, it typically covers all or a portion of a payment vendor's transaction costs (see "transaction fees" below), as well as any other additional fees that are charged by an agency to recover direct costs associated with an electronic payment (e.g., agency costs for expedited processing; or agency costs for receiving a copy of a particular form).
5.5 "Countywide eCommerce payment solution" means the development of a systematic and policy-driven enterprise approach to eCommerce that can be used by any county agency.
5.6 "Credit card" means a card indicating that the holder named on the card has obtained a revolving line of credit from the financial institution issuing the card up to a certain dollar amount valid to a specified date shown on the card. A credit card may be used to pay for goods and services from merchants or organizations participating in the corresponding credit card program.
5.7 "Customer" means the person who is purchasing county goods/services or paying fees/taxes with an electronic payment, such as a credit card, debit card or electronic check.
5.8 "Debit card" means a card indicating that the holder named on the card has an open account in a financial institution shown on the card and that the holder named on the card is authorized to pay for purchases of goods and services from participating merchants so long as the account is valid and has adequate funds to cover the cost of either goods or services, or both, at the time of the transaction.
5.9 "eCommerce Business Guide" refers to the orientation guide for agencies new to eCommerce. The guide provides details on the procedural steps to take for developing a new eCommerce business application.
5.10 "eCommerce Management Plan" refers to the plan that proposes a countywide eCommerce payment solution. The plan was completed in May 2002 and later updated in October 2004.
5.11 "eCommerce payment system" means the county-owned software applications and hardware equipment, also known as the eCommerce payment engine, used by agency web applications to accept and process electronic payments from customers. The eCommerce payment system also includes a vendor that serves as a gateway between the county's payment engine and the financial processor (see "Internet Payment Gateway Service" below).
5.12 "Electronic check" or "e-check" means an ACH debit that is initiated by the customer on the Internet against an open account in a financial institution that is authorized for use to pay for purchases of goods and services from participating merchants so long as the account is valid and has adequate funds to cover the cost of either goods or services, or both, at the time of the transaction. This is also known as an Internet check.
5.13 "Electronic payments" means any financial transaction by which funds are transferred to the county through any type of electronic payment option or method. The electronic payment options include, but are not limited to; Internet payment processing, point-of-sale payment processing, and interactive voice response (telephone payments). The methods of payment include, but are not limited to; automated clearing houses (e.g., Internet checks), credit cards, debit cards, smart cards and wire transfers.
5.14 "Electronic payment services" means any service provided by a vendor who acts as an intermediary in processing an electronic payment, including, but not limited to: merchant banking services, credit card payment processing, ACH debit processing, and Internet payment gateway services. Depending on how contracts with third party vendors are established, the electronic payment services may be coordinated by a single vendor or multiple vendors.
5.15 "Electronic payment processing protocol" means the standard, countywide processes used by an agency when accepting electronic payments from customers, including, but not limited to, eCommerce payment software, contracts with financial services providers, and business procedures.
5.16 "Finance Director" refers to the designated director of the Finance and Business Operations Division (FBOD) or his/her successor.
5.17 "FBOD" refers to the Finance and Business Operations Division of the Department of Executive Services. The Treasury Section within FBOD serves as the point of contact for agencies on these policies.
5.18 "Interactive voice response system" (IVR) means a system that allows users to pay for services over the telephone or other audio-signal carrier using a credit card.
5.19 "Internet payment gateway service" means a service provided by a vendor that directs an Internet payment transaction to the appropriate third party payment processor who facilitates the transfer of funds from a specific financial institution.
5.20 "ITS" refers to the Information and Telecommunication Services Division or its successor.
5.21 "Merchant Banking Service" refers to the designated bank or banking service that processes an electronic payment.
5.22 "OMB" refers to the Office of Management and Budget.
5.23 "Payment vendor" means a service provider who is involved with the electronic payment transaction, including, but not limited to; merchant bank, credit card issuer, credit card association, Internet payment gateway, ACH or credit card payment processor.
5.24 "Personal financial information" means information provided by the customer in the course of completing a payment transaction with the county through an electronic transfer of funds, including but not limited to; credit card number, debit card number, and bank account number.
5.25 "Point-of-sale" or POS is a payment option that performs a real-time payment authorization of a customer's account when the customer presents their credit card (or other payment method) in-person at the time of sale.
5.26 "PRB" refers to the county's Project Review Board and its process for reviewing, approving and monitoring the implementation of Information Technology (IT) projects.
5.27 "Transaction fee" means the same as "transaction cost" and refers to the cost incurred by a payment vendor for executing an electronic payment. If an agency passes all or a portion of this transaction cost on to a customer, then the resulting fee to the customer is typically called a "convenience fee" (see definition above).
Action By: Initiating Agency Action: Request approval to accept electronic payments (applies to both new business applications and existing applications not already part of the county's eCommerce payment system).
7.1 Obtains information from FBOD on its electronic payment processing protocol, including eCommerce payment software, contracts for electronic payments, transaction fee structure, and standard business processes and procedures. 7.2 Obtains business case analysis template from FBOD and completes applicable portions.
7.3 Prepares a written request and business case analysis for accepting electronic payments.
7.3.1 Includes an estimate of applicable transaction fees, any proposed agency fees and how these fees are to be passed on the customer in the form of a convenience fee. 7.3.2 An agency wishing to absorb all or any portion of the transaction fee in its operating budget must also estimate the transaction fee expense as part of the business case analysis and submit a written request to the budget office.
7.3.3 If applicable, requests an exception to using all or a portion of the county's eCommerce payment system as part of a business case analysis. The business case should specifically document the costs and benefits of the alternatives considered, including remaining with the status quo payment system, migrating to the county's eCommerce payment system, or changing to another non-county payment system.
7.3.4 If applicable, provides legal and justifiable business reasons to store personal financial information obtained from customers during an electronic payment transaction.
7.4 The agency submits the written request and business case analysis to the Finance Director.
Action By: Finance Director
Action: Review and approve business case analysis and request to accept electronic payment
7.5 In consultation with ITS technical staff, reviews the written request and business case for accepting electronic payments. 7.5.1 Makes threshold determination on whether the proposed business application is considered as an "operational" request or a "new development" request. The business case template will be used to help make this determination. 7.5.2 Operational Requests. These requests are considered an extension of an agency's normal business process and involve minimal system changes or upgrades. These requests also involve agencies migrating from their current electronic payment system to the county's eCommerce payment system, provided that major system upgrades are not required. If the Finance Director approves, the agency may proceed with their proposal provided they have the authorized budget authority from OMB to move forward with the application.
7.5.3 New Development Requests. These requests typically involve agencies launching eCommerce applications for the first time, with the assumption of major system changes or upgrades. These requests also involve major system upgrades to enable an agency to migrate from their current electronic payment system to the county's eCommerce payment system. The Finance Director shall initially consult with OMB and verify that the request is funded as part of the agency's annual budget. Assuming the agency has an approved budget appropriation, the Finance Director shall then refer such requests to the PRB process, where the agency will need to follow the prescribed steps for the PRB oversight process for new IT projects.
Action By: ITS Action: Assist agencies in integrating eCommerce with their web sites
7.6 Provides required information to integrate the agency application with eCommerce payment system. 7.7 Provides oversight and quality assurance support.
7.8 Provides consultation to Finance Director to assess whether a proposed application is operational in nature or is considered as new development.
7.9 Provides service level agreement with agencies to clarify roles and responsibilities for technical support of business applications.
Action By: Initiating Agency
Action: Set up accounts for accepting electronic payments
7.10 Provides required information to FBOD to set up accounts which may include, but is not limited to, the following: 7.10.1 Checking account for electronic payment deposits. 7.10.2 Merchant bank account and credit card issuer accounts for credit card payment processing.
7.10.3 Internet payment processing and 3rd party payment processor accounts.
7.10.4 Various application forms for setting up new business applications with payment gateway vendor.
Action By: FBOD Action: Setting up accounts for accepting electronic payments.
7.11 Assists initiating agency in setting up the accounts requested by the agency for acceptance of electronic payments. 7.12 Reviews and confirms account numbers and information for use in accepting electronic payments.
Action By: OMB
Action: Confirm funding availability in annual budget, and review and approve funding request to absorb electronic payment transaction fees.
7.13 In consultation with requesting agency, verifies that funds are available in the annual budget to support operational requests and/or new development requests. 7.14 Reviews all business cases where an agency wishes to absorb electronic payment transaction fees in its operating budget.
7.14.1 If the budget office approves the request, it provides written notice to the agency and the finance director that it will submit the appropriation request to the council for its approval to absorb the electronic payment transaction fees in the agency's operating budget. 7.14.2 If the budget office denies the request, it provides written notification to the agency and the Finance Director of the denial.
Action By: King County Council Action: Review and approve appropriation to absorb electronic payment transaction fees.
7.15 Approves or denies any request to absorb all or portion of the transaction costs associated with electronic payment transactions.
