Current through Register Vol. 35, No. 18, September 24, 2024
A. Payment
card services will be provided through the fiscal agent subject to the terms
and conditions as set out in the fiscal agent agreement and the board's
agreements with individual payment card companies, through an agreement between
an agency and a third-party processor if approved by the board, or through a
statewide payment card acceptance system, if established.
B. Agencies requesting payment card
acceptance shall submit to the director of the board a written request that
contains the following:
(1) reason for payment
card services and the specific fees, taxes, or other amounts to be collected
using payment cards;
(2)
confirmation that the agency has read and will follow the terms and conditions
for payment card acceptance as set out in the fiscal agent agreement or
statewide payment card acceptance system agreement, if established, and the
board's agreements with individual payment card companies;
(3) confirmation that the agency will pay all
costs associated with the acceptance of payment card services, including
purchases or leases of merchant equipment, as set out in the fiscal agent
agreement and any agreement with an approved third-party processor, and
including any assessment charged by the state to cover the cost of compliance
with payment card industry data security standards;
(4) confirmation that the agency will be
responsible for tracking, researching and recording all payment card
transactions for reconciliation purposes;
(5) confirmation that any acceptance of
payment cards through the internet shall be done in a secure fashion and on a
secure system;
(6) confirmation in
writing from the department of information technology that the agency's
acceptance of payment cards will meet data security standards of the payment
card industry;
(7) confirmation
that the agency's chief financial officer and chief information officer will
cooperate with the board to ensure compliance with payment card industry data
security standards;
(8) whether the
agency will absorb fees for acceptance of payment cards or cardholders will be
assessed a convenience fee. If fees are to be paid by the cardholder, provide
the procedures used to charge and collect convenience fees from cardholders and
confirmation that the convenience fee will be in compliance with Subsection B
of 6-10-1.2 NMSA 1978, as amended;
(9) if the agency wishes to use a third-party
processor, a copy of the third-party processor agreement with the agency and
the reasons why use of a third-party processor is more advantageous for the
agency than using the fiscal agent. If the third-party processor agreement with
the agency is not yet available at the time board approval for acceptance of
payment cards is requested, the board director may condition any approval on
the board director's later review and approval of the third-party processor
agreement;
(10) if the agency
wishes to use payment gateway through the fiscal agent agreement, a comparison
of the costs and benefits of using payment gateway to traditional payment card
services, including breakdown of fees to be paid by the board, the agency, and
cardholders.
C. The
board, in consultation with the fiscal agent, may, at any time, deny acceptance
of payment cards by or revoke approval to an agency through the fiscal agent
agreement. The reasons for denial or revocation may include, but are not
limited to, the following:
(1) cost
effectiveness;
(2) illegal or
misuse of payment card transactions;
(3) failure to adhere to the terms and
conditions of these regulations, the fiscal agent agreement payment card
industry data security standards, or the board's agreements with individual
payment card companies;
(4)
repeated lapses in compliance or security.
D. Reasons for denial of use of a third-party
processor may include, but are not limited to, the reasons specified in
Subsection C of 2.60.8.8 NMAC. In addition, upon approval, the agency's
agreement with the third-party processor must be approved by the board's
director to ensure compliance with the fiscal agent agreement and the board's
agreements with individual payment card companies. In the event there is no
current agreement between the board and a particular payment card company, the
board's director may authorize an agency's third-party processor to process
payment cards issued by that company under the terms and conditions of the
third-party processor's own contract with the company as long as there is no
discount imposed on or deduction from the entire amount due and owing to the
agency and paid by the cardholder (except for any convenience fee paid by the
cardholder in addition to the amount owed), which amount shall be transferred
by the third-party processor to the agency.
