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Home My WebLink About2000 12 04 Regular C Acceptance of Credit and Debit Cards for Utility Services COMMISSION AGENDA ITEM c CONSENT INFORMATIONAL PUBLIC HEARING REGULAR x November 27,2000 MGR~PT ~ Meeting Authorization REQUEST: The Finance Department requests the City Commission authorize the City's acceptance of credit and debit cards as an additional payment option for utility customer's and accept debit cards for other City services paid at City Hall. This item is un budgeted and would require: an appropriation from retained earnings of the Water and Sewer Fund in the amount of $ 20,000 for FY 01 and, an appropriation from fund balance of the Solid Waste Fund in the amount of $ 5,000 for FY Oland, an appropriation from General Fund balance of $1,000 for FY 01. PURPOSE: The purpose of this agenda item is to request the City Commission authorize the City's acceptance of credit and debit cards for the payment of utility services and debit cards for other city services. CONSIDERATIONS: . The City receives numerous requests from its utility customers to pay by credit/debit card. This additional payment option is viewed as a convenience by our utility customers and is consistent with an enhanced level of customer service. Additionally, credit card acceptance provides another option to those customers who are in the cut-off/collection process with the City for Water and Sewer services. . Offering payment via credit/debit cards is in line with the Finance department's goal of "over the Internet payments" for utility bills. After the computer conversion we would like to explore this option along with bank drafting. Beginning to offer alternative forms of payment is step 1. . Due to the percentage of sale cost associated with credit card use - only high volume, low dollar charges would be charged such as reoccurring utility charges. High dollar items such as connection fees could not be charged on credit cards. . Based on our experience, the Finance Department would consider exploring other City services that could benefit from the offering of credit cards and accordingly budget for the associated credit card fees in the General Fund in FY 2002 (i.e., parks and recreation services, occupational licenses...). In the meantime, the City could offer other paying customers the use of the debit machine. The General Fund would absorb the cost of the 35 cents per transaction fee. An estimate of use would begin at $1,000 or 2,800 transactions. . Results of Survey of Local Cities and County: . Altamonte Springs . Longwood . Lake Mary . Sanford Accepts Credit Cards Accepts Credit Cards for Utility Customers Only In Process of Setting up Credit Cards Does Not Accept Credit Cards Does Not Accept Credit Cards Does Not Accept Credit Cards Does Not Accept Credit Cards . Casselberry . Oviedo . Seminole County . Proj ected Cost: Bank of America rates are based on an annualized Visa/MasterCard sales volume of $1,300,000 and an average transaction size of$60. Debit cards have a 35 cent per transaction fee and Visa/MasterCard credit cards have a 1.91 % of sales fee plus a 5 cent or 10 cent transaction fee, respectively. The estimated annual cost to the Utility and Solid Waste Fund is $24,368 and $5,440, respectively, for use of both the credit and debit card machine. If implementation was to occur January 1,2001, an estimate of$20,000 and $5,000 respectively could be used. Estimated cost to the General Fund for use of the debit card machine only is estimated at $1,000. FUNDING: Appropriation from Utility Fund retained earnings for $20,000 for FY 2001, appropriation from Solid Waste Fund fund balance for $5,000 for FY 2001 and an appropriation from the General Fund's fund balance in the amount of$1,000 for FY 2001. RECOMMENDATION: The Finance Department recommends the City Commission authorize the City's acceptance of credit and debit cards as an additional payment option for utility customer's and accept debit cards for other City services paid at City Hall. IMPLEMENTATION SCHEDULE: Target begin date of January 1,2001. ATTACHMENTS: . Projected Cost Detail . Bank of America Account Application . Bank of America Merchant Services Agreement - Fee Schedule COMMISSION ACTION: 61 BankAmerica Merchant Services Account Application Business Information ( ) Ilusiooss phone , ( FfVl, , Type of Bualno.. C] Sok> P<opriel"""lp 0 Gcnoral P.IIne...., 0 Umlled ~ o Corpomtion 0 Umiled Liability ~y ~OIherC Type 01 goodsIservices """ ~<> ~r 5~<A.'~ -3 ~~~., <2c When was "","",,SS established (WY)? I ~.J'" r How long has currenl Ownof ownod this business? ~ ~ .-.L IIusinoss Name fmdudo <1>0 n applicablol Name and phone number 01 primary contacC Stato Bualno.. SIte- 0 Retail Storefront 0 Private Rosidence o Office &rit. ~ How long .'Illis location? ..2.::J 7'.r N_ 01 locations I Rohmd Polle, o No Refund 0 Refund in 30 days or less o Merchandlso exchange only 0 Othof Physicaf business stroot address (No P.O. Boxes) City Zip ................. (P.O. Boxes okay) City Slate Zip Fodor;!1 T;:llpllyor 10 II City ~ 'Please attach voided check from lhis accounl to boUom leh corner 01 this application. This is the account in wnich wo'lI deposil funds unless you leU us otherwise. Pro,cessing Information T.... projected _ ..... $ Projeded _ V"GIiMasterCanl crOOI coni ..... $ /(I.Jl' '1 '\ i". A_ crOOI canl transaction $ f2, (J "oI_"",swiped S- " MaIIlPhone Onlor Crodit Card Sales S-- Is 8 fulfillment house used? 0 Yes 0 No 0 NlA . yus, Name Address Phono , " Have you accopted aedit cards before? DYes ~ Ifyos: Name of previous processor Processing/Equipment Options " If BA. 16-dlgit morchanll.D. Send seI-up kit to: r--" 0 Btanch ~ AuIhorization and Deposit Mf>deJ", (bPaperDeposit Tenninal ~ o//.rt,.~ Printer Pin Pad 5//")",, Imprinter NJA Te~ Printer If restaurant. does merchant need tenninaJ thai can be actlSl8d' b .7 DYes DNa , Rent Buy ~- 10 === o Pi.... reprogram my own equlpmont: Modal # - # Required Documents Please gIVe these'documents ~o your sales reprcsen~atlvc ' ~~ Cn:dt Cards 0 DinenJ Club-lCarto 8lancho. 0 Discovor- CardlNOVUS"Card Brands 0 Check Guamntoo 0 Expn.Jss Pnymont Scwvice b JC8> Can! 0 American Express' Card 0 Oebll Card 0 Tnrvol and Em.rtainmen1 Services 0 Preauthorized Health Care Payment Options , O~ - Prognlm ~applIcation. b Most recent 3 months' mord1ant processor statomonts.. o CUrrent American Elq:Jress Card processing sla_ !!.MOS1 moont tax returns (see lns:tructIons Insido Sign-Up Package), {VOided Buslnoss ~ng _ chod< (.1lach below). Agreement By signing below, tho Men:hant named abow (1) certilios thaI aD Inloonation and documents wbmilled In connoctlon _this _tion IlI8Iruo and ....-; (2) acIcnowlodges receipt 01 tho - enIitIed -- Card SeMoo Agroomenr (tho "Agroemenl"); (3) agrees that Me<Cllan1 and each trensadion submittad 10 SA Me_ SeMces. Inc. (BA) will be boood by tho tanns and 00f1Cfiti0ns In tm Agreement; and (4) agrees that Meft:l1ant wiD submh Il'8I1SaCIions 10 SA only In acoorda1lCa _the Information In this Application and will imledialeIy i'1fom1 SA In wrb1g althe adI*ess beIow.any i1loonalion ilthis Application changes; and (5) unde!StaI1ds that this ApplIcation is subjed to approwJ by BA. Yoo, signaIure lIlJIhorizes BA" -vy 8IIY lIthe_ given. i'1ClJding aediI.-ances; 10 _'n audit ~ on the bu.lnasa end each 01 you Indlvtduafly,lndudlng Guamnton (Inc:ludfng a _ Win. cornmunBy -" _~_ 10 ....... 0< povIdo lhIs InfonnalIon 10 BA'. alIIl_ This Agreemanl booomos offocttva when signed by Me_ and SA. Siglalures 01 twO SA oIf"""" IlI8 __to t>nd SA. SIGN ~erChant Signature HERE X Signa... o ChocI< here n !his application is Ie< a privalaly held COIjlOretion. . so, the prh:\>aIlMnOr(s) musl _ to ~uIng Guaren1y definad il '" ~ and s91 below: ~2~. ~;:;: LV/-~r-c..rS./',l-IL,,-,"J.J~ 2) Guaran1o< Signature 3) Tltio Guamnlor Signaturo Dept. #12133, P.Q, Box 37000, San Francisco, CA 94137 r... Dal. Pmt Nama x 2) - SignaIure Dal. "] f !! Prlnt_ BA Merchant Senrices, Inc. ~~ I/-)-()O 2) It] '~ankAmerica SA Merchant Services, Inc. A BankAmerica Company Business Name C~I:J I /) / Merc.hant Card Service Agreement-Fee Schedule or- q// ~r.o- -':>/J.r,,- -~ As it appears on the Merchant Servlces AccountApplication (MS-B) Visa" Discount Rate; 1- 7/ % ..c; MasterCard" Discount Rate; /, 11 % 1-. / d ~ plus Non-Qualified Visa/MasterCard interchange passthrough (Ieii attached) OR AMEX SE#: 0/0 rt Per item fee of: () rt % or SOrt, whichever is greater, rt per transaction, _ plus Visa/MasterCard interchange/assessments direct passthrough (see attached) Discover" CardlNOVUSSM d per transaction fee: /~ Check Guarantee Fees: Online Debit Card Fees; . Visa, MasterCard, Diners Club, Carte Blanche, and JCB Card discount rates are charged on monthly gross sales. There is no charge per authorization, nor for supplies or customer service (except for Diners Direct). · Visa/MasterCard discount rates: -For lowest rates, assume that magnetic stripe on card is read electronically or if direct marketing merchant, AVS feature is used; only one authorization is obtained for transaction; transaction is transmitted for deposit within 24 hours; and card used is not a corporate or inter- national card, If these conditions are not met, Visa and MasterCard may assess a non-qualified surcharge. -Also apply to VisaChec~ Card, MasterMoneyn" and ELECTRON" Card. -Are subject to periodic Visa and MasterCard interchange and association dues increases. . American Express and Discover Card/NOVUS Card Brands discount rates are negotiated and billed separately by those issuers, who are responsible for settlement, chargebacks, and customer service, . Check Services Agreement (with rates and fees) will be sent to you separately. One-time, non-refundable set-up fee; Minim 0 Chargeback Fee: $15 per item Monthly Equipment Maintenance Fee: $ merchant-owned terminal/printer set ~ 'f ~sJ e.... _-.. -+- Rush Fee: $ 0 C-oJ ~~,....,- - ~........... NS, F Other per EQUIPMENT FEES . Equipment Model A Rental Purchase (plus tax and shipping) Terminal ;);~-d ~r,-'7 V $ 36 /month $ '-" . Printer $ /month $ Terminal/Printer $ /month $ PIN Pad .5P,.P~ $ /6 /month $ Imprinter $ /year $ PC Software $ / $ Other $ / $ , PRICING ACKNOWLEDGMENT I have reviewed the above fee structure of my BA Merchant Services, Inc. (BAMS) merchant account. I understand that the minimum thresholds for the above noted VisalMasterCard pricing are an average transaction size of $ ~a and an annualized VisalMasterCard sales volume of $I.,~~~ . I further understand that BAMS will review those assumptions after a period of actual processing and that my rate could be fficreased if either the average ticket or volume run rates are lower than the minimum thresholds. In addition, BAMS may pass on charges imposed on us by credit card associations, such as Visa and MasterCard, resulting from my failure to comply with credit card regulations. BAMS may collect these charges in the same way as other amounts owed by me under the Agreement. I understand that my application is subject to approval by BAMS. PRINT NAME )/&#~~a'H PRINT NAME AND SALES CODE DATE SALE 1/- ?-a::J DATE MS-l04-E 8-98 Easl TOP COPY-MERCHANT BOTTOM AND MIDDLE COPIES-BA MERCHANT SERVICES, INC. '.~d u_ . , CITY OF WINTER SPRINGS PROJECTED COST OF CREDIT CARD AND DEBIT CARD USE WATER & SEWER FUND $ 2,935,441 $ 2,989,IlIl4 $ 50,212 $ 31,_ $ 90,000 $ 185 $ 2,469 $ 8,100,181 X 20% 1,220,038 X 10% 122,004 1,220,038 (122,004) , ,098,033 1,098,033 X 1.91% 20,972 $ S $ $ $ 1,098,033 80 18,301 0.075 1,373 1,220,038 X5% 81,002 X ,42% 258 $ $ S $ $ 122,004 60 2,033 0.35 712 WATER REVENUE PER 1009 CAFR SEWER REVENUE PER 1009 CAFR REUSE WATER FEES PER 1999 CAFR APPLICATION FEES PER 1999 CAFR OEPOSITS ESTIMATE BASED ON ANNUAL POPULATION INCREASE TURN ON/OFF FEES PER 1009 CAFR NSF CHECK FEES PER 1999 CAFR APPROXIMATELY 20% PAY WITH CREDITIOEBIT PER BANK OF AMERICA REPRESENTATIVE ESTIMATED ANNUAL REVENUE "CHARGED" VIA CREDIT/DEBIT CARDS APPROXIMATELY 10% OF ANNUAL "CHARGES" PAY WITH DEBIT CARDS PER BANK OF AMERICA REPRESENTATIVE ESTIMATED ANNUAL REVENUE PAID WITH DEBIT CARDS ESTIMATED ANNUAL REVENUE .CHARGED. VIA CREDITIOEBIT CARDS LESS ESTIMATED ANNUAL REVENUE PAID WITH DEBIT CARDS ESTIMATED ANNUAL REVENUE PAID WITH CREDIT CARDS ESTIMATED ANNUAL REVENUE PAID WITH CREDIT CARDS % OF SALE CHARGE ESTIMATED 'Y. OF SALE COST ESTIMATED ANNUAL REVENUE PAID WITH CREDIT CARDS AVERAGE BILL ESTIMATED NUMBER OF CREDIT CARD TRANSACTIONS AVERAGE TRANSACTION FEE VISA 5 CENTS, MASTERCARD 10 CENTS CREDIT CARD TRANSACTION FEE ESTIMATED ANNUAL REVENUE "CHARGED" VIA CREDITIOEBIT CARDS % OF TRANSACTIONS NOT SWIPED SUBJECT TO ADDITIONAL FEE $ TRANSACTIONS CHARGED ADD'L FEE TO HAND ENTER FEE OF .42% OF SALE HAND SWIPE FEE 980 2 TERMINALS WITH PIN PADS AT $40IPER MONTH EACH 95 ONE TIME SET UP FEE ESTIMATED ANNUAL REVENUE PAID WITH DEBIT CARDS AVERAGE BILL ESTIMATED NUMBER OF DEBIT CARD TRANSACTIONS DEBIT CARD TRANSACTION FEE PER SALE DEBIT CARD FEE 24,388 TOTAL ANNUAL ESTIMATED COST ASSOCIATED WITH CREDITIOEBIT CARDS TO UTILITY FUND 18,276 IF IMPLEMENTED JANUARY 1, 20D1 . REMAINING 9/12'5 OF YEAR IS 20,000 I SOLID WASTE FUND 1,423,585 X 20% 284,717 X 10% 26,472 284,717 (28,472) 258,245 258,245 X1.91% 4,694 $ $ S $ S 258,245 60 4,271 0.075 320 284.717 X5% 14,236 X.42% 60 $ S $ S S 28,472 60 475 0,35 168 IS ROUNDED UP TO ACCOUNT FOR USE OF 1999 FIGURES AND ESTIMATE NATURE OF CALCULATION GARBAGE PER 1999 CAFR (BILLED ON UTILITY BILL) APPROXIMATELY 20% PAY WITH CREDITIOEBIT PER BANK OF AMERICA REPRESENTATIVE ESTIMATED ANNUAL REVENUE "CHARGED" VIA CREDITIOEBIT CARDS APPROXIMATELY 10% OF ANNUAL "CHARGES" PAY WITH DEBIT CARDS PER BANK OF AMERICA REPRESENTATIVE ESTIMATED ANNUAL REVENUE PAID WITH DEBIT CARDS ESTIMATED ANNUAL REVENUE "CHARGED. VIA CREDITIOEBIT CARDS LESS ESTIMATED ANNUAL REVENUE PAID WITH DEBIT CARDS ESTIMATED ANNUAL REVENUE PAID WITH CREDIT CARDS ESTIMATED ANNUAL REVENUE PAID WITH CREDIT CARDS % OF SALE CHARGE ESTIMATED 'Y. OF SALE COST ESTIMATED ANNUAL REVENUE PAID WITH CREDIT CARDS AVERAGE BILL ESTIMATED NUMBER OF CREDIT CARD TRANSACTIONS AVERAGE TRANSACTION FEE VISA 5 CENTS, MASTERCARD 10 CENTS CREDIT CARD TRANSACTION FEE ESTIMATED ANNUAL REVENUE "CHARGED" VIA CREDITIOEBIT CARDS % OF TRANSACTIONS NOT SWIPED SUBJECT TO ADDITIONAL FEE $ TRANSACTIONS CHARGED ADD'L FEE TO HAND ENTER FEE OF .42% OF SALE HAND SWIPE FEE ESTIMATED ANNUAL REVENUE PAID WITH DEBIT CARDS AVERAGE BILL ESTIMATED NUMBER OF DEBIT CARD TRANSACTIONS DEBIT CARD TRANSACTION FEE PER SALE DEBIT CARD FEE 5,440 TOTAL ANNUAL ESTIMATED COST ASSOCIATED WITH CREDIT/DEBIT CARDS TO UTILITY FUND 4,080 IF IMPLEMENTED JANUARY 1, 2001 a REMAINING 9/12'S OF YEAR 5,000 I ROUNDED UP TO ACCOUNT FOR USE OF 1999 FIGURES AND ESTIMATE NATURE OF CALCULATION