County Treasurers: Go From Paper Mess to Payment Success Part 2

Updated September 2025

This is Part 2 of our county payment modernization series. Read Part 1: The County Payment Crisis for background on why current systems fail.

County treasurers ready to modernize their payment systems face a critical question: How do you transform decades-old processes without disrupting daily operations? This guide provides the roadmap for successful implementation.

Essential Features for Modern County Payment Systems

Technical Requirements Checklist

✅ Integration Capabilities

• API connectivity with existing ERP systems
• Real-time data synchronization
• Legacy system compatibility
• Automated reconciliation processes

✅ Security and Compliance

• PCI-DSS Level 1 certification
• End-to-end encryption and tokenization
• WCAG 2.1, Level AA accessibility compliance
• Multi-factor authentication options

✅ Citizen Experience Features

• Guest checkout (no account creation required)
• Mobile-first responsive design
• Multiple payment method support
• 24/7 availability with minimal downtime

✅ Administrative Tools

• Multi-department architecture
• Customizable reporting and analytics
• User permission management
• Automated payment confirmation systems

Understanding the RFP Requirements

When is an RFP Required?

State requirements for when a formal RFP is required vary by purchase amount, project type, and other factors.   We recommend checking your specific state’s requirements.

Combined List of State and Local Procurement Thresholds for Formal Bidding/RFP

• Alabama: Formal bidding is required for purchases over $50,000.
• Alaska: Formal procurement is required for supplies and services over $100,000.
• Arizona: A formal solicitation is generally required for purchases over $100,000, though some federal programs have a $250,000 threshold.
• Arkansas: Formal sealed bidding is required for purchases over $75,000. Purchases between $20,000 and $75,000 require three written quotes.
• California: Varies by county and municipality. For example, some cities have an informal proposal threshold of $25,000-$95,000, and a formal RFP/bid threshold for purchases over $95,000.
• Colorado: Formal competition (RFP/IFB) is required for purchases over $250,000.
• Connecticut: Formal bidding is required for purchases over $100,000.
• Delaware: Formal bidding is required for materials and non-professional services over $50,000.
• District of Columbia: The Chief Procurement Officer may establish a streamlined process for contracts up to $100,000.
• Florida: Many local governments set a formal bid/proposal threshold for purchases over $50,000, while smaller amounts require a certain number of quotes.
• Georgia: A competitive bid is required for purchases of $25,000 or more with the same vendor in a fiscal year.
• Hawaii: A formal e-procurement process is required for purchases over $25,000.
• Illinois: The small purchase threshold for commodities and services is $100,000, with formal bidding required for amounts above that.
• Indiana: Formal bidding (IFB or RFP) is required for purchases over $150,000.
• Louisiana: A formal sealed bid process is required for purchases over $25,000.
• Maryland (Prince George’s County): The small procurement threshold is $30,000. Formal solicitations are required for amounts above this.
• North Carolina: The formal competition threshold is $31,000, with informal solicitations for amounts between $5,000 and $30,999.
• North Dakota: The threshold for bidding on public improvement construction is $250,000. The threshold for services and supplies can vary, but generally requires a formal process for larger amounts (often over $100,000).
• Pennsylvania: Formal bidding is required for purchases and contracts over $23,800, which is adjusted annually for inflation.
• Texas: The competitive procurement threshold for many local governments is increasing from $50,000 to $100,000.
• Vermont: Thresholds vary, but generally a formal RFP process is required for larger-dollar contracts, often in the range of $40,000 to $250,000, depending on the type of goods or services.
• Virginia: Thresholds vary, but often have tiers, such as an informal solicitation for purchases between $10,000 and $100,000 and a formal sealed bid/RFP for purchases over $100,000.
• Washington: The formal sealed bid threshold is often set at $40,000 for various state agencies, with different tiers for smaller amounts.

Important: If using federal funds, federal procurement rules apply regardless of local thresholds.

RFP Exemptions to Consider

• Cooperative purchasing: Using another agency’s existing contract
• Below threshold purchases: Contracts under your competitive bidding limit
• Emergency procurements: Immediate need situations (rare for payment systems)
• Sole source: When only one vendor can provide the service (very rare)

Building an Effective RFP

1. Executive Summary Section

• Current system challenges and costs
• Transaction volume data and projections
• Integration requirements with existing systems
• Compliance requirements (PCI-DSS, ADA, state regulations)

2. Detailed Scope of Services

• All required payment methods (credit/debit, ACH, mobile, cash-to-digital)
• Integration with existing financial/ERP systems
• Real-time reporting and reconciliation capabilities
• Customer service and technical support requirements
• Implementation timeline and training requirements

3. Evaluation Criteria Framework

• Price/Cost (25-35%): Total cost of ownership, processing fees, implementation
• Technical Capability (25-30%): Integration ability, feature set, security standards
• Experience (20-25%): Government sector experience, similar implementations
• Support and Training (10-15%): Customer service, training programs, ongoing support
• Financial Stability (5-10%): Vendor financial health and longevity

The Approval Process: Building Stakeholder Support

General Approval Process

Primary Decision Makers:

• County Commissioners/Council: Budget approval and contract authorization
• County Attorney: Legal review and compliance verification
• Finance Director: Budget verification and financial impact assessment

Supporting Stakeholders:

• IT Director: Technical compatibility and security review
• Department Heads: Operational requirements input
• Procurement Officer: RFP development and vendor evaluation

Building Your Business Case

Financial Justification Formula: For a county of 100,000 residents, delaying modernization:

• Daily opportunity cost: $137
• Annual waste: $50,005
• Three-year total: $150,015 (not including inflation)

Present the Math: Show commissioners that modernization pays for itself through the elimination of manual processing, reduced staff overtime, and improved collection rates.

How to Justify the Daily Cost

To make this business case powerful, you need to show where that $137 comes from by breaking down the “waste” into its tangible components:

1. Staff Time and Manual Processing: Calculate the number of hours your team spends daily on manual tasks. This includes processing paper checks, manually reconciling payments, and fielding phone calls for simple questions. Multiply those hours by the average hourly staff wage (including benefits) to get a hard dollar amount.
2. Reduced Collection Rates: Estimate the cost of uncollected or late payments. A modern system improves collection rates by making payments easier and by automatically sending reminders. Even a small percentage increase in collections can quickly add up to thousands of dollars per year.
3. Overtime and Human Error: Quantify the cost of staff overtime needed to handle peak periods (like property tax deadlines) and the financial impact of human errors, such as misposted payments or manual data entry mistakes.

Implementation Strategy: Avoiding Common Mistakes

Mistake #1: The “Big Bang” Approach

Wrong: Implementing all departments simultaneously

Right: Phased rollout starting with high-volume, low-complexity transactions

Recommended Sequence:

1. Utility payments and permit fees
2. Business licensing and court fines
3. Property taxes and complex services

Mistake #2: Underestimating Change Management

Critical Success Factor: Invest 30% of your implementation budget in staff training and citizen education.

Staff Preparation Steps:

• Involve key staff in vendor selection
• Designate payment system champions in each department
• Provide comprehensive training before go-live
• Plan for temporary parallel systems during transition

Mistake #3: Ignoring Integration Complexity

Risk Mitigation:

• Conduct thorough system audits before vendor selection
• Require vendors to demonstrate actual integration capabilities
• Plan additional time for legacy system compatibility issues
• Have data migration backup plans

Timeline and Cost Planning

Realistic Implementation Timeline

Total Process: 120-180 days

• Planning and initial approvals: 30-45 days
• RFP process: 45-60 days
• Evaluation and final approvals: 45-75 days
• System implementation: 60-90 days

Cost Structure Planning

One-Time Costs:

• Implementation and setup: $15,000-$35,000
• Staff training and change management: $5,000-$15,000
• System integration: $10,000-$25,000

Ongoing Annual Costs:

• Software licensing: $8,000-$15,000
• Support and maintenance: $4,000-$10,000
• Payment processing: $0 (with service fee models)

Modern Solutions: Service Fee Models

Eliminating Processing Costs

Traditional payment processing passes costs to county budgets. Modern service fee models work differently:

• Counties receive full invoice amounts
• Payment processor collects service fees from citizens
• No processing costs impact county budgets
• Citizens pay only when using credit cards

Multi-Department Integration Benefits

Single Platform Advantages:

• Unified reporting across all departments
• Shared administrative tools and training
• Individual branding and fee structures per department
• Centralized security and compliance management

Measuring Success: Key Performance Indicators

Financial Metrics

• Processing cost reduction (target: 40-60%)
• Collection rate improvement (target: 15-25%)
• Staff time savings (target: 40-60% of reconciliation hours)
• Late fee capture improvement (target: 35%)

Citizen Experience Metrics

• Payment completion rates (target: 85%+)
• Customer service call reduction (target: 35-50%)
• Citizen satisfaction scores (target: 2+ point improvement)
• Mobile payment adoption rates

Operational Metrics

• System uptime (target: 99.5%+)
• Average payment processing time
• Error rates and refund requests
• Staff training completion rates

Grant Opportunities for Implementation

Federal Funding Sources

Technology Modernization Fund (TMF)

• Supports government technology upgrades
• Includes payment system modernization
• Provides incremental funding and technical guidance

Digital Equity Grants

• Support broadband and digital solutions deployment
• Include payment modernization for public services
• Available through state and federal programs

State and Local Opportunities

• Competitive matching grants for digital upgrades
• Utah example: Up to $225,000 for eligible modernization projects
• Search opportunities through grants.gov and state economic development offices

Expert Recommendations

Critical Success Factors

1. Start Strategically: Begin with services that have high citizen demand and low implementation complexity.

2. Communicate Early: Inform citizens about upcoming changes and benefits 60 days before implementation.

3. Train Thoroughly: Ensure all staff can confidently help citizens navigate new systems.

4. Monitor Continuously: Track usage patterns and citizen feedback to optimize the system post-launch.

5. Plan for Growth: Choose platforms that can expand as your county’s needs evolve.

Frequently Asked Questions

Q: Can we implement during budget season without chaos? A: Yes. Many counties intentionally implement during budget season to demonstrate immediate cost savings. Maintain both systems temporarily during transition.

Q: How do we serve citizens without bank accounts? A: Cash-to-digital payment networks allow citizens to pay cash at participating retailers, which are processed electronically to your county.

Q: What about citizens who don’t trust online payments? A: Offer multiple options: phone payments with live agents, in-person assistance, and education campaigns showing security features.

Taking Action: Your Next Steps

1. Assess Current Costs: Calculate your annual processing waste using the formulas provided
2. Build Your Team: Identify key stakeholders and assign project roles
3. Research Vendors: Focus on government-specialized payment processors
4. Prepare Your RFP: Use the framework provided to develop comprehensive requirements
5. Plan for Success: Allocate adequate resources for change management and training

Conclusion: The Time is Now

Counties implementing modern payment systems today gain competitive advantages in citizen satisfaction, operational efficiency, and financial performance. With technology proven and implementation processes established, the risk lies not in acting but in waiting.

Every day of delay costs your county money and frustrates citizens. The transformation from manual processes to digital efficiency is happening now—the only question is whether your county will lead or follow.

Your citizens deserve better service. Your staff deserves better tools. Your budget deserves better efficiency.

The roadmap is clear. The benefits are proven. The time for action is now.

Ready to Start Your Assessment? Contact our government payment specialists for a free analysis of your current system costs and modernization opportunities. Discover how similar counties eliminated manual reconciliation and enhanced citizen satisfaction. Reach out to sales@intellipay.com or contact 855-872-6632 for a no-obligation assessment of your needs.

About IntelliPay

We help treasurers and finance directors optimize their payment processing through transparent interchange-plus pricing, no hidden fees, expert guidance, and reliable technology solutions. Our team combines deep industry knowledge with personalized service to ensure every client gets the best possible payment processing solution for their business.

The information provided on this page is for educational and informational purposes only. We make no representations or warranties regarding the completeness, accuracy, or security of this content, and all advice is provided “as is.” The content does not constitute legal, financial, or professional advice, and readers act on it at their own risk