(a) Administration by comptroller. A state agency interested in accepting credit, charge, and debit cards will contact the comptroller's office. The comptroller's office will determine whether it is in the best interest of the state for the state agency to accept credit, charge, and debit cards and whether the state agency should contract with the comptroller or with a selected vendor. The comptroller will contract with selected vendors to provide credit, charge, and debit card services to state agencies that contract with the comptroller.     
      (b) State agency contracts with comptroller. A state agency will enter into an interagency contract with the comptroller to obtain access to the services provided by selected vendors pursuant to terms established by the comptroller in the interagency contract.     
      (c) State agency contracts with vendors. In lieu of contracting with the comptroller, a state agency, with the comptroller's approval, may directly contract with vendors, provided the criteria in paragraphs (1)-(8) of this subsection are met.      
        (1) The state agency shall provide the comptroller's office with a draft copy of its Request for Proposal prior to issuance and a draft copy of its vendor contract prior to execution. The comptroller shall review the drafts for compliance with these rules, state law, and other comptroller processes relevant to the deposit of funds into the state treasury. The comptroller will notify the state agency whether the drafts are accepted or rejected.       
        (2) The state agency will provide the comptroller's office with the merchant numbers assigned and the USAS coding block information at least two weeks prior to the acceptance of the first credit, charge, or debit card transaction.       
        (3) The state agency must provide in its contract with the vendor that the vendor will credit the comptroller's designated bank account for the total amount of credit, charge, and debit card sales, less any credits issued. The comptroller will enter the deposit into USAS, crediting the appropriate coding block on the same day the vendor credits the comptroller's designated bank account.       
        (4) In order to insure the accuracy of information and credit, charge, and debit card payments transmitted to the comptroller by state agencies, the comptroller shall determine the method by which the information and credit, charge, and debit card payments will be transmitted by state agencies.       
        (5) The state agency's contract with the vendor must further provide that:                  (A) the vendor shall debit the comptroller's designated account for chargebacks;                   (B) the state agency will have sole responsibility for resolving chargebacks; and                   (C) the vendor may debit the comptroller's designated account for the fees or the vendor may invoice the state agency directly for the fees.         
        (6) The state agency shall be responsible for reviewing the fees for validity. The comptroller will enter the fee charges into USAS.       
        (7) The state agency will have sole responsibility for the security of the information captured in each transaction.       
        (8) The state agency will ensure that the vendor:                  (A) makes funds available on a timeframe that is equal to or better than what is provided in the comptroller's contract with selected vendors; and                   (B) complies with state law and all comptroller policies with respect to deposits into the state treasury.         
      (d) Subject to any contracts between the state agency and any vendors or subject to any interagency contracts between the state agency and the comptroller, a state agency that accepts a credit, charge, or debit card for the payment of fees, taxes, or other charges may assess a processing fee for the payment of such fees, taxes, or other charges.     
     Source Note:        The provisions of this §17.2 adopted to be effective June 11, 2001, 26 TexReg 4214