Program Governance, Application, and Benefits

Technical Overview

The Louisiana Payment Gateway (LPGW) is an electronic payments application designed by the Office of Electronic Services and in cooperation with The Louisiana Department of the Treasury to process electronic payments for state entities. It has been created and developed to serve as an electronic payment application program interface (API). It allows secure, reliable, and flexible methods of electronic payments from anywhere at anytime - 24x7x365. Customers are offered the greatest range of payment options available.

Customers may use credit card processing via MasterCard®, VISA®, Discover®, or American Express® through the State of Louisiana’s credit card service provider, Paymentech. The LPGW also easily accommodates customers who prefer not to use credit by allowing them to use Automated Clearing House (ACH) technology by making use of debit cards, electronic checks, direct debits from a checking or savings account, or electronic funds transfer (EFT) as set forth in the Central Bank Services Agreement between the State of Louisiana and JP Morgan Chase.

State Agency projects are required to enroll individually and separately into the Louisiana
Payment Gateway (LPGW).

The Louisiana Administrative Code of September 2002, Title 71, Part VII, Chapter 1 and Louisiana Administrative Code of October 20, 2002, Title 71, Part 1, Chapter 9 provided Louisiana State Agencies authority to conduct business and with the methods to do so electronically.

The Louisiana Department of the Treasury is responsible for procurement of statewide contracts for credit cards, debit cards, and electronic funds transfer that govern the use of electronic payments. The Treasury is also responsible for the administration and use of those statewide contracts, the payment instruments and brands to be accepted, the manner in which electronic payments are to be accepted and authorized, the responsibility for payment of processing fees, the use of transaction fees, and the security requirements for such participation.

As an enterprise-wide solution, provided by Innovate PAY-CENTRAL™ technology and software and the Office of Electronic Services, the LPGW allows centralized payment processing through one common infrastructure that allows state agencies to conduct different types of transactions at various points throughout the expanse of the program.

State Agencies must accept the terms and conditions of the American Express®, Discover®, VISA/MasterCard® Master Contracts and Agency Participation Agreements and shall adhere to those terms and conditions fully as administered by the Office of State Treasury and promulgated in accordance with R.S. 49:316.1 and LAC Title 71.

Notwithstanding anything to the contrary, the contracts and agreements shall continue in effect for so long as the Master Contracts and Agreements with American Express, Discover, Visa, and MasterCard are in full force and effect.

Program Benefits

The LPGW program provides the following benefits for more effective customer service:

Customers will be given the opportunity to conduct their business transactions with state agencies with unprecedented speed, accuracy, control, convenience and freedom
Safe and secure electronic transitions. The LPGW will not only ensure the customers are authorized to make their purchases but the transactions' payment data will also be protected and exchanged immediately and securely throughout the financial processes.
Improved cash management. Electronic payments such as credit and debit cards will dramatically reduce the collection risks and delays otherwise associated with payment types such as paper checks.
Lower payment processing costs. Combined statewide transaction and dollar volumes that will be leveraged and encourage suppliers and vendors to provide favorable rates to the State.
Enhanced operational efficiencies. The result of standard reporting.
The LPGW will contribute to smoother back-office operations due to Standard reporting facilities. Repeatable procedures based on statewide policies contribute to smoother back-office operations.
Better risk management. Utilization of consistent operations, common services, and stringent implementation requirements that will additionally enable better risk identification and mitigation.