Vol 1 - Part 5 - Chapter 4700 (T/L 544)
     
            PLASTIC CARD COLLECTION NETWORK
     
          This chapter prescribes procedures to be observed
     by all Federal agencies, for establishing and
     maintaining accounts in the Plastic Card Collection
     Network (PCCN) and for processing Federal agency credit
     card and debit card receipts.
     
     Section 4710 - Authority
     
          Regulations governing this chapter are issued
     under 12 U.S.C. 265, 266, 1464(k), 1725(d), 1789a, 31
     U.S.C. 3720(a).  All funds are to be collected by
     Electronic Funds Transfer (EFT), which includes credit
     and debit cards, when cost effective, practicable, and
     consistent with current statutory authority.  Financial
     Management Service (FMS) exercises its authority by
     using designated depositaries to support Governmentwide
     credit and debit card collection services.
     
          I TFM 6-8000 establishes the policy regarding cash
     management practices within the Federal Government
     concerning regulations, systems, and procedures.
     
     Section 4715 - Definition of Terms
     
          Agency - Any department, instrumentality, office,
     commission, board, service, government, corporation, or
     other establishment in the executive branch of the
     Federal Government.
     
          Agency Application - The initial document prepared
     by an agency and submitted to FMS, requesting an
     account in the PCCN.
     
          Agency Participation Agreement - The PCCN
     agreement that establishes the terms and conditions of
     the agency's participation in the Master Agreement
     between the FMS and the financial institution for
     Plastic Card services.
     
          Bank - A financial institution (FI) designated
     under 31 CFR 202 as a depositary and financial agent of
     the U.S. Government and authorized by FMS to perform
     plastic card collection services for Federal agencies.
     
          Chargeback - Transaction reversed by bank due to
     incomplete transaction information or inappropriate
     handling as prescribed in Master Agreement.
     
          Credit Card - Any valid card as prescribed in
     Master Agreement and Agency Participation Agreement,
     such as VISA USA or MasterCard-International.
     
          Debit Card (ATM CARD)-  The name adopted by the
     industry for a card that authorizes a debit to a
     customer's banking account.  The machine readable
     plastic card allows electronic withdrawals from
     checking or savings accounts via an ATM or enables a
     cardholder to make retail purchases at a merchant's
     location.  Funds are transferred electronically to a
     merchant's account from the cardholder's account.
     
          Electronic Data Capture - Process by which
     point-of-sale (POS) terminals maintain (through
     internal memory) complete information on each credit or
     debit  card transaction.  For credit card transactions,
     this information can be electronically transmitted in
     batch mode at time of settlement to the plastic card
     bank.
     
          Financial Institution (FI) - See "Bank", above. 
     These terms are synonymous.
     
          Master Agreement - An agreement signed by FMS and
     each FI in the Plastic Card Collection Network to
     provide plastic card collection services to Federal
     agencies.
     
          Network - The FIs authorized by FMS to provide
     credit or debit card collection services to Federal
     agencies.  Each FI can provide service nationwide. 
     Only these FIs are authorized to provide debit or
     credit card services to Federal agencies.
     
     Section 4720 - Plastic Card Services Offered Through
     the Network
     
          This section provides an overview of the debit and
     credit card services available to agencies.  The basic
     debit and credit card services are provided to agencies
     at no cost (see I section 4735). 
     
     4720.10 - Authorization Services
     
          The FI provides for authorizing transactions
     electronically, by voice, or by paper (on-line debit
     card transactions must be authorized electronically). 
     By authorizing the transaction, the agency ensures its
     validity by immediately determining that the card is
     not lost or stolen and that the user has sufficient
     funds in his or her credit line (or account, in the
     case of debit transactions).
     
          Agencies having more than 100 monthly credit card
     transactions must perform electronic authorization. 
     Voice and paper authorization of credit card
     transactions should be used on an exception only basis
     as a backup to electronic authorization.  Every
     transaction must be authorized and agencies should work
     with the FI to determine the most appropriate
     authorization technique.
     
          NOTE: If an agency is not performing the
     authorization properly (by procedure), all costs above
     the agreed upon method will be assessed to the agency.
     
     4720.20 - Training
     
          Agencies will arrange with FI representatives to
     receive training in a "train the trainer" format.  The
     trained agency officials will then teach other
     employees.  This includes distributing operating
     guides, instructions, and other documentation.
     
     4720.30 - Supplies
     
          Agencies will access the necessary supplies from
     the FI representative to process credit and debit card
     transactions.  These supplies include sales drafts,
     imprinter plates, and promotional items.  Prior to
     agency implementation, agencies will ensure that FIs
     deliver these supplies to each agency location, as
     needed.  To expedite resupply, each agency should
     maintain a bulk supply at agency headquarters or
     regional locations.
     
     4720.40 - Chargebacks
     
          Agencies will work with the FIs to resolve and
     minimize the occurrence of chargebacks, (transactions
     reversed by the cardholder FI, the cardholder, or the
     Network Bank).  Agencies can avoid most chargebacks  by
     ensuring that personnel are thoroughly trained in
     processing transactions and by processing transactions
     electronically.
     
     4720.50 - Data Elements and Formats
     
          Agencies will work directly with the FIs to
     establish required data elements and formats so the
     FIs' systems properly interface with agencies'
     information systems to update accounts receivable. 
     These services will be provided at no cost to the
     agency.  Any additional, program-related data capture
     and transmission will be paid for by the agency.
     
     4720.60 - Dedicated Communication Lines
     
          Agencies will seek the FIs' advice and assistance
     in procuring dedicated lines for electronic
     authorizations.  The agency pays the costs for these
     dedicated lines.  Depending on the agencies' needs and
     configuration, the FI provides appropriate advice on
     costs for each option.  The FI will coordinate
     ordering, implementing, and installing dedicated lines
     with telecommunication companies. 
     
     4720.70 - Settlement Data/Activity Reports
     
          To meet its reconciliation needs, the agency will
     use  deposit reports, provided by the FI. Agencies will
     inspect activity reports for accuracy, then report any
     discrepancies to the FIs and FMS.
     
     4720.80 - Telephone Order Assistance
     
          Agencies shall consult with the FI to determine
     the most effective means of processing telephone credit
     card orders.
     
     Section 4725 - Application/Implementation Process
     
          Agencies should interview with all PCCN FIs to
     assess the FIs' understanding of an agency's program
     and its level of commitment to offering flexible
     services.  Although each FI has signed an identical
     contract with FMS to perform PCCN services, an agency
     may find one FI to be more responsive to its particular
     needs.
     
          Agencies interested in accepting credit and/or
     debit cards should obtain applications from Network FIs
     or FMS.  A completed application will be sent to FMS to
     be analyzed against the objectives shown in I TFM
     5-4730.   Once the application is approved by FMS,
     Agency Participation Agreements for either credit
     cards, debit cards, or both must be signed  by the
     agency and FI.  The Agreement then must be forwarded to
     FMS, for the final signature.  An Agreement must be
     completed and signed by the agency, the FI, and FMS,
     before any joint work is begun by the agency and the
     FI.
     
          If the application is approved, the agency shall
     work with the FI to construct a customized
     implementation plan. The plan will include:
     
          o    Agency profile (type of collection, potential
                    volume, collection method (mail, phone,
                    etc.)).
     
          o    Information on agency locations
                    (addresses/contact  points).  
     
          o    Type of services (credit card, debit card, or
                    both).
     
          o    Training.
     
          o    Followup program for quality assurance.
     
          o    Technical specifications on equipment.
     
          o    Equipment to be purchased by the agency from
                    the FI. (See 4735.20.)
     
          o    Implementation timeline milestones.
     
          o    Special handling procedures.  Including a
                    list of   ancillary services to be charged to
                    the agency.
     
          o    Authorization/deposit/settlement procedures.
     
          o    Supplies required.
     
          o    Chargeback and retrieval responsibilities.
     
          An Agency Participation Agreement documents an
     agency's participation in the Master agreement and
     outlines terms and conditions for accepting credit or
     debit cards in the agency.  This agreement is a binding
     document between the agency,  the FI, and FMS,  and
     must be signed for FMS to pay for agency credit or
     debit card services.  FMS will maintain the signed copy
     in its files. 
     
     Section 4730 - Types of Credit and Debit Card
     Collections
     
          Subject to the provisions of 31 CFR 206, agencies
     can accept debit and credit cards for various
     collection activities, outlined in the following
     subsections.
     
     4730.10 - Sales/Services
     
          Some examples of sales or services applications
     for which FMS may approve the use of debit or credit
     cards are:
     
          o    Sales (by mail and over-the-counter) of
                    miscellaneous  items, such as publications,
                    maps, charts, souvenirs,  surveys,
                    photographs, or films.
     
          o    Medical services.
     
          o    Freedom of information requests.
     
          o    Inspection or grading services.
     
          o    Commodity sales, (such as timber, oil).
     
     4730.20 - Fees/Fines
     
          Some examples of fee or fine debit or credit card
     applications which FMS may approve are:
     
          o    Inspection fees.
     
          o    Criminal, civil, and court fees and fines.
     
          o    Recreation user fees.
     
          o    Duties.
     
          o    Patent fees.
     
          o    Registration fees.
     
          o    License fees.
     
     4730.30 - Debt Repayment
     
          FMS may approve the acceptance of debit or credit
     cards to collect monies due from (1) extending loans
     for housing, education, health care, agriculture, and
     business, (2) repaying of duplicate benefits, (3)
     travel advance repayments, and (4) other administrative
     collections.
     
     Section 4735 - Compensation/Agency Expenses
     
     4735.10 - Costs Paid by FMS
     
          When funds are deposited to the General Fund and
     not withdrawn for investment, FMS will pay the costs
     for--
     
          o    Processing each debit and credit card
                    transaction.
     
          o    All per-transaction-call charges assessed by
                    the FI for authorization and settlement.
     
          o    Chargeback assistance.
     
          o    Deposit reporting through the CA$H-LINK
                    system.
     
          o    Initial "train the trainer" instruction as
                    described in paragraph 4720.20.
     
          o    Supplies, as described in 4720.30.
     
          o    Deposit reports showing cardholder account
                    number,   transaction amount, and date. 
     
          A monthly expense report and management monitoring
     report will be sent to FMS from each Network FI
     detailing the number of transactions processed, the
     status of each agency's PCCN activities, and the
     accompanying costs.
     
     4735.20 - Costs Paid by Agencies
     
          The agency shall pay for--
     
          o    Equipment - namely,  electronic data
                    capture/point of sale (EDC/POS) terminals
                    with attached printers, PIN pads and
                    software, PCs, modems and imprinters.
     
          o    Standard voice-grade telephone line
                    installation and monthly charge.
     
          o    Dedicated lines deemed necessary for an
                    agency in a high volume, high-pressure,
                    point-of-sale environment, such as, checkout
                    lines at large retail outlets.
     
          o    Any international authorization/settlement
                    charges above domestic charge rates paid by
                    FMS.
     
          o    Extra services beyond those specifically
                    defined and priced in the Master Agreement,
                    such as detailed training beyond the "train-the-trainer" format.
     
          o    Customized reports such as those that list
                    product codes.
     
          Network FIs will assist each agency in determining
     the most appropriate equipment.  In many cases,
     existing equipment, such as a personal computer, may be
     sufficient for credit card authorization and settlement
     transactions.  As the provider of plastic card
     collection services, the FI provides technical
     expertise in reviewing and approving the agency's
     proposed equipment configuration.  FMS recommends that
     agencies inquire about the many types of authorization
     and settlement functions.  
     
     Section 4740 - Deposit Regulations
     
          Agencies must comply with the provisions of 31 CFR
     206.5 contained in I TFM 6-8000, which require that
     deposits be made prior to the depositary's specified
     daily cutoff time, but as late as possible, to maximize
     daily deposit amounts.  Each FI informs the agency of
     its particular cutoff times.  In an electronic
     environment, this means a settlement transaction should
     take place through an EDC/POS at various times during
     the day (or once at the close of business) in order to
     meet the FI's cutoff time for deposit.
     
          FMS strictly prohibits holding credit card
     deposits above the daily $5,000 limit.  Agencies should
     not accumulate daily receipts of more than $5,000 after
     the FI's daily cutoff time if they are operating in a
     paper sales draft settlement mode.  If the agency is
     operating in an electronic data capture (EDC) mode, it
     must settle on a daily basis, regardless of the amount
     accumulated that day.  Agencies will pay the assessed
     non-qualifying interchange fee if they fail to settle
     electronically everyday.
     
     Section 4745 - Agency Monitoring Requirements
     
     4745.10 - General
     
          The agency is responsible for accounting
     requirements of all transactions and funds transferred. 
     Agencies must monitor performance daily to ensure
     quality service, reconciliation of detail remittance
     data, and timely funds transfer.  Agencies prepare
     necessary financial statements and reports to FMS (I
     TFM Part 2).
     
     4745.20 - Deposit Information
     
          Agencies use the Agency Access function of the
     CA$H-LINK to retrieve information about deposits.
     Agencies will receive an SF 215 deposit ticket with
     support listing described in the CA$H-LINK User's
     Guide.  Agencies will reconcile the deposits reported
     on Agency Access to the SF 215 deposit tickets received
     from the FIs.  NOTE: If an agency does not have Agency
     Access to the CA$H-LINK system, they should contact FMS
     and request an application (see Contacts page).
     
     4745.30 - Reconciliation Inquiries
     
          The agency will pursue inquiries on reconciling
     detail data/documents directly with the FI customer
     representative.  However, long-term operational
     problems should be reported to FMS (see Contacts page).
     
     4745.40 - Funds Transfer
     
          The agency will inform FMS (see Contacts page) of
     failure by the FI to process payments promptly or
     failure to transmit funds, resulting in a delay in the
     availability to Treasury.
     
     4745.50 - Evaluation
     
          The agency responds to periodic Treasury surveys
     for evaluation of services being provided by both FMS
     and the Network FI.
     
     
                        CONTACTS
     
     
          Agencies are encouraged to contact their FMS cash
     management liaison concerning questions on the Network
     and to obtain copies of the Agency Participation
     Agreement.  Initial inquiries should be made to the
     Product Promotion Division or your regional FMS
     Customer Assistance Staff (CAS):
     
               Department of the Treasury
               Financial Management Service
               Product Promotion Division
               Liberty Center (3rd Floor)
               Washington, DC 20227
               (Telephone 202-874-6540)
     
               Austin:        Financial Management Service 
                              CAS
                              P.O. Box 149058
                              Austin, TX 78714-9058
                              (Telephone 512-482-7211)
     
               Birmingham:    Financial Management Service 
                              CAS
                              P.O. Box 2451
                              Birmingham, AL 35201-2451
                              (Telephone 205-290-7234)
     
               Chicago:       Financial Management Service 
                              CAS
                              P.O. Box 8670
                              Chicago, IL 60680-8670
                              (Telephone 312-353-2364)
     
               Kansas City:   Financial Management Service 
                              CAS
                              P.O. Box 3329
                              Kansas City, KS 66103-0329
                              (Telephone 913-236-3305)
     
               Philadelphia:  Financial Management Service 
                              CAS
                              P.O. Box 8676
                              Philadelphia, PA 19101-8676
                              (Telephone 215-516-8001)
     
     
               San Francisco: Financial Management Service 
                              CAS
                              P.O. Box 193858
                              San Francisco, CA 94119-3858
                              (Telephone 415-744-7433)
     
               Washington
               Branch Office: Financial Management Service 
                              CAS
                              Prince George Center, Bldg. 2
                              3700 East West Hwy. Rm 245C
                              Hyattsville, MD 20782
                              (Telephone 202-874-8880)
     
          After an account is implemented, inquiries
     concerning daily operations should normally be directed
     to the Network FI and the Regional Customer Assistance
     Staff representative. However, matters concerning the
     agreement and special/recurring issues should be
     directed to:
     
               Department of the Treasury
               Financial Management Service
               Financial Services Division
               Liberty Center (4th Floor)
               Washington, DC 20227
               (Telephone 202-874-6580)
     
          Questions relating to Deposit Information
     (paragraph 4745.20) should be directed to:
     
               Department of the Treasury
               Financial Management Service
               Banking Management Division
               Banking Operations Branch
               3700 East-West Hwy., Rm 5A08
               Hyattsville, MD 20782 
               (Telephone 202-874-6900)