Financial Operations

The FCC’s online system for collecting licensing fees was one of the U.S. Government’s first online fee collection systems.

Introduction:

The Federal Communications Commission (FCC) collects millions of dollars every year in broadcast licensing and regulatory fees. Prior to August 1999, many individuals and organizations mailed remittance advice forms and payments to a Mellon Bank lockbox in Pittsburgh, Pennsylvania. For the FCC, entering this information into a database proved labor intensive, and applicants often endured long delays before receiving FCC license approval.

Challenge:

After researching the banking industry and scrutinizing online credit card payment options, longtime FCC partner Computech recommended that the FCC collect fees online. Additional considerations included server security and compatibility with the FCC’s licensing system. Based on the collective effort of the FCC Computech team, the Commission launched the Remittance Over Secure Internet E-commerce (ROSIE) system in August of 1999. One of the U.S. Government’s early ventures into online fee collection, the FCC accrued approximately $1 million in fees via credit card during ROSIE’s first year. That figure has increased exponentially each year, approaching $33 million in 2008.

Solution:

The implementation of Rosie helped the FCC to streamline and integrate the fee collection and licensing process; however, the FCC Computech conferred with the U.S. Department of Treasury, which oversees all government e-payment systems. The Treasury Department, in turn, contracted with a 3rd party firm to manage the credit card transactions FCC Computech built interfaces that enable all of the system’s elements to operate seamlessly. ROSIE transfers registered applicants who opt to pay fees online directly to the secure site. The 3rd party passes the card authorization back to ROSIE, and the system automatically notifies the FCC, which takes the appropriate action (e.g., acknowledges payment).

For six—or seven—figure fees, ROSIE also supports the automated clearinghouse (ACH) method of electronic funds transfer. FCC Computech’s integrated system ensures quick, secure processing of all transactions. In a highly regulated industry that imposes severe penalties for missed deadlines, such speed is crucial.

Notable Results:

The team met their challenge by thinking outside the lockbox. ROSIE offers convenience to end-users, while providing the FCC with enormous increases in productivity and cost savings. Applicants can register, complete forms, pay fees, and receive immediate acknowledgment from the FCC all online. ROSIE processes millions of licenses and payments, significantly reducing both the number of lockbox transactions and the time spent on data entry.

To date, ROSIE has processed more than 1,045,416 credit card transactions for the FCC, valued in excess of $175,500,693; and including payments through ACH, the total approaches $190,304,098. In addition to expedited revenue generations, ROSIE’s benefits include the following:

• Convenience: the user-friendly system enables customers to pay fees online, instead of writing and mailing checks;
• Process efficiency: electronic processing reduces the reliance on paper forms and manual data entry;
• Security and reliability: a 128-bit encrypted server transmits credit card information; and
• Government responsiveness: applicants receive immediate acknowledgment of payment.

Since ROSIE’s initial roll-out, the FCC Computech team has made ongoing enhancements to the system. As public interest increases, and internal FCC requirements change, FCC Computech will ensure that ROSIE continues to meet its mission of increasing efficiency and reducing costs.