Merchant Credit Card Processing Services

CITY OF CASPER

Request for Proposal

May 18, 2018

Contact:

Connie Arnold, Finance Supervisor

(307) 235-8236

KEY INFORMATION AND SUMMARY SHEET

CITY OF CASPER, WYOMING

Request for Proposal

Merchant Credit Card Processing Services

RFP Issue Date:May 18, 2018

RFP Issuing Department:City of Casper Financial Services Department

Issuing Contact:Connie Arnold

Finance Supervisor

200 N. David St.

Casper, WY 82601

Office Phone: 307-235-8236

Office Fax: 307-235-7575

Proposals are to be sent to:City of Casper Financial Services Department

Attn: Connie Arnold

200 N David St.

Casper, WY 82601

Closing Date and Time:June 22, 2018 at 4:00 p.m. MST.

INDEX

The following sections are contained in this RFP:

Section IBackground Information

Section IIRequired Vendor Information and Responsibilities

Section IIISchedule of Events

Section IVScope of Service Tasks

Section VFormat for Required Information

Section VIFees and Other Charges

Section VIIAppendices

SECTION I: BACKGROUND INFORMATION

The City of Casper, Wyoming “City” is soliciting proposals for a qualified merchant credit card processing servicewith a successful and trustworthy company “Vendor.”Our goal is to secure lower processing rates.

The City is the second largest municipality in Wyoming, with a population of 58,000. We have offered the use of credit cards as a method of payment since 2009. The City has ten (10) locations and eachutilizesone or more credit card terminals. We currently have contracts with two (2) credit card processors, First Data and Valli Systems (BDS – Billing Document Specialists); Valli Systems uses Elavon as their processor and Authorize.Net as their payment gateway.

We have a municipal utility service (water, sewer and sanitation)that accepts approximately 5,000credit card transactions per month and an approximate dollar volume of $500,000. 75% of these payments are CNP (Card Not Present). One-thirdof the CNP payments are over the phone debit card transactions (keyed-in), andthe other two-thirds are e-commerce payments.

A few City departments process nearly1,000 credit card transactions on a regular monthly basis, and an approximate dollar volume of $150,000. These transactions are accepted for an assortment of same day services, e.g., landfill charges, water and sewer investment charges, building and planning permits, business licenses, and parking citations. A large percentage of these transactions are CP and are corporate/business cards.

Several of the remaining City departments are seasonal – which means there will be 3-4 months of higher usage and in the remaining months of the year there is minimal to no usage. Together these departments process approximately 845 monthly transactions and an approximate monthly dollar volume of $79,830. These card transactions are mostly CP (Card Present) debit transactions.

We are seeking a vendor that will:

Process credit and debit cards on site either using the city’s current credit card machines or by utilizing equipment provided by the vendor.
Process credit and debit cards from an online portal using our current third party website – Valli Systems (Billing Document Specialists).
Participate in the Visa Utility Interchange Reimbursement Fee program.
Transmit customer payment transaction flat file on a daily basis via a secure FTP site.
Remit payment funds to the City on a daily basis via a wire transfer.
Provide an online merchant account portal that provides city administrators with real time, customizable transaction information.
Send a separate monthly invoice to each merchant account (each City Division using a terminal/website).

SECTION II: REQUIRED VENDOR INFORMATION AND RESPONSIBILITIES

This RFP and addenda to this RFP will be found on the City website located at under Business / Request for Proposal. It is the obligation of each vendor to monitor the website to obtain complete and timely information. Vendors are cautioned that the City is not obligated to ask for or accept after the opening date, data which is essential for a complete and thorough evaluation of the proposal. However, should the City request additional information, either written or oral, the vendor must provideit. Refusal to honor such request may result in rejection of the proposal. The City may award a contract based on initial submissions without any further discussion of such proposals. Accordingly, each proposal should be submitted in the most favorable and complete terms possible.

Proposals and documents pertaining to this RFP become the property of the City of Casper and shall be open to public inspections following the proposal opening, excluding proprietary information as exempted by law. Proprietary information submitted in response to this RFP must be separately packaged, sealed, and clearly labeled ‘PROPRIETARY’. Financial data, trade secrets, test data, and similar proprietary information will, to the extent permitted by law, remain confidential provided such material is clearly so marked by the proposer prior to submission.

In an effort to clarify any issues in this RFP, the City will respond to questions that are presented in writing. These questions will be answered and posted online for all Vendors to review. Written questions are due by 5:00 p.m. MST on May 25, 2018. Questions may be faxed or emailed to the attention of Connie Arnold at 307-235-7575 or . The responses to all written questions will be posted on our website located at by 5:00 p.m. MST on May 31, 2018.

All proposals will be reviewed and evaluated by a committee within the Financial Services Department. The City reserves the right to reject any and all proposals received as a result of this RFP process. Any proposal judged to be incomplete will be rejected. Late responses, responses en route, or those left at locations other than the Financial Service Department will not be considered. The review committee will make recommendations to the City Manager.

The Financial Services Director will negotiate and award the final contract. An implementation plan will be developed with input from the City and the successful submitter.

The proposal shall be divided into sections as indicated below:

Statement of Project Requirements: The proposal shall include a signed statement that the Vendor has obtained a thorough understanding of the services sought and of the current services being received, as presented in the RFP, and that its proposal will replace or improve upon these services.
Scope of Work: The proposal shall describe in narrative form the Vendor’s technical plan for accomplishing the work. Please use the Scope of Services Tasksfound on pages 6-8 in this RFP as the point of departure. Additions to or modifications of the task descriptions are permissible, but reasons for changes shall be fully allocated to each task.
Special Qualifications: The proposal shall identify any specific qualifications which might make the Vendor uniquely qualified to provide the requested services. These may include similar agreements related to another customer of similar size.
Cost of Service: The Vendor will include a concise breakdownof charges and fees, by utilizing the pro forma list located in Section VII, Appendix B; this form includes pricing for each possible credit card type transaction and volume.
Conflicts of Interest: The proposal shall specifically address any possible conflicts of interest and the Vendor’s position or response as to whether or not this relationship may be deemed a conflict of interest with this project.
Professional and Financial References: The proposal will include a list of professional and financial references. The list of references should include individuals or organizations who work with the Vendor. The list should also include individuals or organizations that are familiar with the Vendor’s current financial and operational capacity. Please refer to the reference specifications on Section VII, Appendix E.

General Criteria for Evaluation of Proposals:

Pricing Fee Schedule(Weighted multiplier - 40): The pricing of fees and charges requested will be decidedly measured as the proposal is evaluated.

Understanding the Service, Technology and Support (Weighted multiplier - 10):This refers to the Vendor’s understanding of the City’s needs, as detailed in this RFP.

Service and Support
PCI DSS Compliance
Ability to support existing technology or integrate equipment/software into City’s environment.
Electronic document management solution.

Responsiveness and Experience(Weighted multiplier - 30): This refers to how well the proposal meets the needs of the City. The experience of the proposed vendor should be documented, including experience with local governments similar to the City’spopulation and credit card volume.

Documentation (Weighted multiplier - 10): This refers to the completeness of the RFP by the Vendor, and the inclusion of all requested data and samples.

References (Weighted multiplier - 10): The references were supplied as requested.

SECTION III: SCHEDULE OF EVENTS

DATE / EVENT
May 18, 2018 / Request For Proposal (RFP) Issued
May25, 2018 / Questions due from Vendors – 5:00 p.m. MST
May 31, 2018 / Answers to Questions - posted by end of day.
June 22, 2018 / Proposals Due – 4:00 p.m. MST
July 10, 2018 / Selection Date

SECTION IV: SCOPE OF SERVICE TASKS

Within your proposal, please use the breakdown of the service specifications found on pages 6-8 to notate your ability to meet or exceed the following task measures. Respond with requested answer – i.e., “Yes” or “No”, a list, a dollar figure, a percentage, a sample PDF, use of a provided specific form, a written essay, etc.

Minimum Qualifications, Requirements and Financial Capability

____Vendor has a minimum of five (5) years’ experience in providing merchant credit card services. The Vendor’s experience and competencedisplayed in providing merchant credit cards service to government entities, demonstrates the Vendor will process the City transactions accurately, securely and on time without interruptions. Y/N – List name of client (s), clarify in 50 words.

____Vendor provided a sample contract that they use.

____Vendor reviewed our City of Casper attorney’s contract template and commented on sections they find questionable. Y/N

____Vendor providedthree (3) references from current credit card processing clients, of which two (2) references are from similarly sized or larger government sector clients; Vendor provided 2 financial references familiar with the Vendor’s financial and operational capacity.Vendor confirmed relationship with three (3)ERP Financial Software. See Appendix E.

____Vendor provided a sample PDFof an electronic or paper monthly summary report/statement that would be submitted to the City of CasperFinancial Services Department summarizing the activity for all accounts /locations, to include monthly sales, transactions counts and a breakdown of the transactions by all card types. The summarized report/ statement should also include the number of monthly authorizations, PIN debits, and any other transaction services fees by category.

____Vendor will provide each merchant account/location, associated with our one Federal Tax ID number,with aseparate monthly invoice. A sample PDF included?

____Vendor providedevidence of their PCI DSS compliance by supplying a recent copy of the

SOC/SSAE audit report; they included reports for any subcontractors, third party processors and any other involved parties. Y/N

Equipment

____Vendor has a solution for equipment compatibility - Use essay format.

City of Casper would like to minimize the potential to incur additional cost for credit card equipment. City of Casper has compiled a list of the credit card terminals/equipment and manufacturers that all locations utilize. We have also provided a listing of the third-party service providers we use via the internet or credit card terminal connection in Section VII, Appendix A.

Review the list that has been compiled and advise if your program is compatible with the current equipment that is being used.
If not, please propose the type of equipment you would recommend, and how these costs can be minimized.
All fees associated with new terminal equipment, implementation, etc. should be listed on Section VII, Appendix B of the pricing schedule.
List the third-party processors you are associated with.
List the types of equipment you utilize.
Supply a total turnkey purchase price for equipment and software needed on day one.

Merchant Credit Card Processing Capabilities

____Vendor provided the following information on the pro forma analysis, Section VII, Appendix B, based on the City’s credit card volume for FY2017. They listed and defined transaction fees for authorization, settlement, network, and communications. Included were any one-time setup charges, research fees and all other fees or charges that will or could be charged (e.g., interchange rates, regular and ad hoc reporting costs).Use essay format explaining rates.

____Vendor supplied answers to the specific questions below:

What information is required to prevent our transactions from falling into a non-qualifying category?
How do fees differ when processing different types of cards (e.g., personal and business cards)?
Are all charges, related to a transaction, billed in the same month?
What rates or fees do you charge when my customer uses their card as a chip, key-entered, or online?
Do you charge a separate fee for your gateway?
When a transaction is refunded, does the City get any of the original fees refunded to them?

____Vendor provides next day settlement for all credit card network transactions? Y/N – Clarify in

25 words.

____Vendor specified the latest time that sales transactions can be transmitted to meet these settlement times? Y/N – Clarify in 25 words or less.

____Vendor provided details of how settlement amounts will be listed on the bank statement? Y/N

____Vendor has a process in place to correct duplicate transactions? Y/N - Clarify in 100 words or less.

____Vendor listed the limitations that may exist on the number of files/transactions: Y/N

Number of transactions contained in a batch?
Number of files transmitted daily?

____Credit card chargebacks or other debit adjustments are debited separately? Y/N – Clarify in 25

words.

____Vendor has procedures in place to reverse an incorrect authorization? Y/N- Clarify in 100 words.

____Vendor has a monitoring and notification process if a transmission fails? Y/N – Clarify in 25

words.

____Vendor specified when funds are credited to our bank account? Y/N – Clarify in 25 words.

____Vendor supplied the City with a review of the changes in fee structure for accounts that are

seasonal? Y/N – Clarify in 100 words.

Online Information Reporting Services

____Vendor offers a secure website to receive and view current and historical data and reports. PDF or screens shot samples of reports have been provided?

____Vendor has24 months of daily data and reconciliation reports available to the merchant, for each location and account, and provided sample reports?Y/N –Clarify in 100 words.

____Vendor has capability to track credit card transactions for each merchant account/location, creating an audit to be used by system administrators or supervisors?Y/N – Clarify in 25 words.

Third Party Processing

____Vendor participates in the Visa Utility Interchange Reimbursement Fee (VUIRF)? Y/N -

Clarify in 25 words.

____Vendor has services integrated to/with third party software, websites and gateways?Use essay

format– 100 words.

Payment Card Industry Data Security Standards

____Vendor and all of its subcontractorsand third-party processors are in compliance with all applicable PCI DSS standards, as verified by the certification supplied in proposal?Y/N - Clarify in 100 words.

____Vendor offered an outlined process in the event of a data breach; outline display; set security

measuresare in place for the protection of data transmitted for processing and a process is in

place to notify customers in the event of a security breach? Use essay format.

Implementation

____Vendor has an implementation process, including testing, a suggested implementation schedule and support in place. An implementation scheduleoutlines the milestone dates to accomplish and should include detailed tasks, dates and resources assigned and identified for each milestone?Use essay format.

____Vendor has ongoing 24/7 customer service support provided, at no charge? Y/N - Clarify in 25

words.

SECTION V: FORMAT FOR REQUIRED INFORMATION

Proposals should be printed on 8.5” x 11” paper (one side only). Proposals should be spiral bound on the left-hand side or in ring binder. The document submitted to City must include tabbed sections. Sections 1-5 and Attachment A should correspond to those sections of this RFP. It is strongly suggested that the request for information and questions contained in the RFP should be repeated in the proposal with the responses and answers to the questions following. Any supplemental information thought to be relevant, but not applicable to the specified categories, should be provided as an appendix to the proposal.

Vendors submitting proposal to the RFP must be submit one (1) original and three (3) copies. The proposals must be signed by an official authorized to bind the Vendor to its provisions. This RFPtogether with the contents of the proposal of the successful Vendor will contain much of the contract provision between the parties.

Proposals should be sealed in a package or envelope and externally labeled “Credit Card Processing Proposal.” Proposals should be sent to the attention of Connie Arnold, Finance Supervisor.

Proposals must be received at Casper City Hall, 200 N. David Street, Casper WY, 82601, by the specified date and time, as noted on page 2. Printed proposals must be submitted; electronic submissions will not be accepted.

SECTION VI: FEES AND OTHER CHARGES

Vendors will provide a merchant fee schedule based on the activity and volume as described in Section VII, Appendix A. The fees and charges presented in this proposal shall remain fixed for athree (3) year term of the contract with the following exceptions that shall be adjusted to reflect increases or decreases in all applicable rates, fees, and assessments established by MasterCard and VISA Interchange rates.

SECTION VII: APPENDICES

APPENDIX A

City of Casper Credit Card Volume Schedule

Department / Current Vendor / Type of Cards Accepted / Type of Cards Processed / Type of Equipment ++
(All chip readers) / Terminal Count / Average Monthly Volume / Average Annual Volume / Average Monthly Trans-action / Average Annual Trans-action
Finance (Utility) / First Data / Visa, MC, Discover / Walk-in
/Phone / FD100Ti w/pin pad (ethernet)++ / 3 / $91,692 / $1,100,308 / 932 / 11,180
Valli Systems* / All / Online / NA / $347,851 / $4,174,212 / 3,603 / 43,282
Valli Systems / All / IVR / NA / 477 / 5,700
Solid Waste / First Data / Visa, MC, Discover / Walk-in
/Phone / FD100Ti w/pin pad (ethernet) / 4 / $116,461 / $1,397,536 / 620 / 7,440
Municipal Court / First Data / Visa, MC, Discover / Counter / FD100Ti w/pin pad (ethernet) / 1 / $17,750 / $212,990 / 101 / 1,216
Community Development / First Data / Visa, MC, Discover / Walk-in
/Phone / FD100Ti w/pin pad (ethernet) / 1 / $1,660 / $66,670 / 38 / 460
Engineering / First Data / Visa, MC, Discover / Walk-in
/Phone / FD100Ti w/pin pad (ethernet) / 1 / $4,570 / $54,800 / 2 / 24
Cemetery / First Data / Visa, MC, Discover / Walk-in
/Phone / FD100Ti w/pin pad (ethernet) / 1 / $3,898 / $46,700 / 5 / 64
Metro / First Data / Visa, MC, Discover / Walk-in
/Phone / FD100Ti w/pin pad (ethernet) / 1 / $2,930 / $35,200 / 94 / 1,132
Police / First Data / Visa, MC, Discover / Walk-in
/Phone / FD100Ti w/pin pad (ethernet) / 1 / $1,508 / $18,100 / 149 / 1,790
Golf
(Seasonal) / First Data / Visa, MC, Discover / Walk-in
/Phone / FD100Ti w/pin pad (ethernet) / 1 / $55,269 / $221,078 / 355 / 1,420
Hogadon Ski
(Seasonal) / First Data / Visa, MC, Discover / Walk-in
/Phone / FD100Ti w/pin pad (ethernet) / 1 / $21,548 / $86,193 / 356 / 1,427
Ft. Casper Museum
(Seasonal) / First Data / Visa, MC, Discover / Counter / FD100Ti w/pin pad (ethernet) / 1 / $3,013 / $15,065 / 134 / 672

++ All FD100Ti units are owned by City of Casper