CREDIT CARD AGREEMENTS
MASTERCARD, VISA & DISCOVER
As part of the servicing bank contract, the State Treasurer also contracts for merchant card services. The contract term for the merchant card processing service is the same as the overall servicing bank contract. County and municipal governments can also take advantage of the card acceptance discount rates contracted for by the state for their own merchant card servicing.
The merchant card contract is awarded for a term of three years with two one-year extensions for MasterCard, Discover and Visa. The current contract expires in December 2019.
The bundled qualified pricing is as follows:
- Visa Rate is: 1.45%
- MasterCard Rate is: 1.45%
- Discover Card Rate is: 1.45%
Other pricing structures are available based on approval from the State Treasurer’s Office
The State Treasurer’s Office has negotiated an agreement to allow the State of Arizona to accept the American Express. Similar to the other banking contracts, this agreement is also available to all other Arizona governmental entities for their use.
- American Express Rate is 2.15%
CREDIT CARD REVENUE REDUCTION LIMITS
Annually, on the first day of June each year, the State Treasurer will establish both an approved discount fee limit and an approved processing fee limit. These limits will go into effect the first day of the immediately following fiscal year and remain in effect for the balance of the fiscal year to which they apply.
- The approved discount fee limit is two point one-five percent (2.15%) of the transaction amount.
- The approved processing fee limit is twenty-five cents ($0.25) per transaction.
My staff and I are dedicated to safeguarding the hard earned tax dollars of our citizens. Our primary goal is the safety of your tax dollar through prudent custody and management of funds. We will provide the most effective and efficient services with full transparency and financial clarity.