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City of Fargo Request for Proposals for Merchant Credit Card Processing Services

July 16, 2018

San José – Financial Services Package B SUBMITTED BY: CERTIFIED PAYMENTS

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Steve SpragueCity AuditorCity of Fargo 200 3rd St. NorthFargo, ND 58102 Dear Mr. Sprague: Certified Payments appreciates the opportunity to respond to the City of Fargo’s Request for Proposal for Merchant Card Processing Services.

As a leading industry provider of payment solutions for government agencies, we bring a distinct focus to this business, combining next-generation products and turnkey integration capabilities with exceptional customer service.

Our proposal fully addresses your Scope of Services, including these specifications:

Provide a competitively based discount for the processing of all four major credit cards: Visa, Mastercard, Discover and American Express.

o We provide a competitively priced discount for processing costs across all four major credit card brands.

The service should allow the City to authenticate the cardholder and the use the card’s magnetic strip or chip to authenticate the cardholder and to authorize and capture the transaction.

o Our process follows the above-requested protocols. After a card is swiped or inserted into the POS device, it travels to the authorizer for confirmation of sufficient funds to cover the payment. After a payment is authorized, the card issuer then validates the transaction.

Deposit payments electronically into specified city bank accounts by merchant ID. The float on City funds should be minimized.

o We deposit payments electronically within 24 hours as per your specification. Settlement amounts are listed on the statement as “Bankcard Settlement MID #, DBA Name.”


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Provide online access to view daily transactions and account reconciliation/settlement reports by major credit card and by merchant ID.

o Our Realtime Monitor offers detailed payment information with transaction data updated every 10 seconds. It provides the same query and look-up abilities already built into our reporting.

Contractor must provide monthly statements per merchant ID that clearly summarize all revenue related activity including all chargeback information by date and card type. All processing fees must be separate from revenue deposits. The Statement deposit activity must match the actual deposit activity in the City’s accounts.

o We can provide all of the above. Specifically, Certified Payments delivers complete, accurate and timely reporting of credit and debit card activity, via a suite of reports that are fully compliant with PCI standards.

Provide seven (7) days per week technical support, and provide, at no cost to the City, on-site technical service as may be required in the event of operational difficulties related to transmission of daily transactions or any equipment/software failure or malfunction.

o Certified Payments can provide tech support 24/7.

Once again, we are honored to participate in the evaluation process and believe you will find our services to be the best match for the City’s objectives. For additional information or any questions related to this proposal, please contact David Myers, Sales Associate, at 469-288-6635 or [email protected]. Thank you for your consideration.

Mike LoMurroPresident, Certified Payments


Certified Payments100 Throckmorton St, Suite 200Fort Worth, TX 76102www.certifiedpayments.netCertified Payments is a DBA of Accelerated Card Company, LLC, a Delaware limited liability.

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http://www.certifiedpayments.net/

mailto:[email protected].

[email protected] (phone)866-959-4160 (fax)

Merchant Credit Card Processing1. Describe your company's authorization method, list and describe alternative authorization methods. What are the procedures to reverse an incorrect authorization? Describe the monitoring and notification process if a transmission fails.At the highest level, authorization travels through a four-step process. After a card is swiped or inserted into the POS device, it travels to the authorizer that confirms that there are sufficient funds to cover the payment. After a payment is authorized, the card issuer will need to validate the transaction. This validation then flows back through the channels to the POS device, which displays a decline or approval. Next, the payment is sent to two separate MIDs, covering the City payment and convenience fee, respectively.

Certified Payments’ gateway has logic in place to prevent duplicate transactions, which includes an auto-reversal process that looks for these types of transactions and proactively voids them same-day. In the event a duplicate transaction or incorrect authorization is settled/funded to the merchant, the Certified Payments support team can assist the City in refunding the transaction back to the cardholder.

2. Describe the security measures used to prevent unauthorized user access to the system or data. If applicable, please indicate if there has ever been a compromise to any credit card systems or application through a security breach. If yes, explain the process your company took to notify customers, the steps taken to protect the customer's data and the safeguards put in place to prevent it in the future.We follow rigorous security protocols to prevent unauthorized user access to the system or data. To that end, our network has a defense-in-depth architecture that leverages industry recognized vendor security solutions associated with preventative and detective controls that are strategically deployed. The architecture includes, but is not limited to: firewalls, intrusion detection, content filtering, file integrity monitoring, security event & information management, virtual private networks, encryption, malware controls, awareness training, secure email and secure large file transfer processes.


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mailto:[email protected]

Our dedicated security team supports this security architecture and provides timely reaction to suspicious events. Certified Payments has never suffered a privacy breach of any kind.

3. Can you provide next day settlement for Visa, MasterCard, AMEX and Discover network transactions? What is the latest time that sales transactions can be transmitted to meet these settlement times?We can settle and fund transactions for Mastercard, Visa and Discover, both debit and credit cards, in a single batch within 24 hours of processing. As detailed below, American Express times may differ. To ensure funding occurs within 24 hours, batches must be closed and submitted prior to 5:55 p.m. CT.

4. How is settlement made by your organization (direct account debit, ACH, or invoice)? Please provide details. Please describe how settlement amounts will be listed on the bank statement. Will they appear as one lump sum (meaning one amount for Visa, MasterCard, and Discover, one amount for AMEX) or separate?Certified Payments uses net settlements, reflecting total sales revenue less refunds and chargebacks. We facilitate funding for Visa, Mastercard and Discover and they appear together; AMEX is funded separately by American Express itself. We provide next day funding for the three non-AMEX card brands; AMEX typically funds within 48 to 72 hours.

5. Describe your process to ensure that transactions qualify for the lowest interchange category.During onboarding process, our Customer Care team will check to see if any of the City’s transactions qualify for any special fee programs, such as the former Visa Tax Debit or the Visa Utility programs, and register the City for the programs.

Additionally, your Account Manager, David Myers, will alert the City to any new products or cost saving ideas that he believes would be of benefit to the City and the citizens you serve.

6. Describe your procedures to correct duplicate transactions.To prevent and mitigate duplicate transactions, our gateway proactively monitors and tracks 10 different transaction variables. By employing this sophisticated monitoring system, we are able to automatically tag any duplicates for auto-reversal.

7. Describe any limitations on the number of files/transactions:


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

All transactions on the Certified Payments platform are processed in real time. There is no limit to the number of transactions we can accommodate.

8. Are credit card charge backs or other debit adjustments netted from daily proceeds, or are they debited separately? Please describe your chargeback process in detail.Certified Payments’ unique chargeback structure ensures that adjustments and chargebacks are sent separately from the daily net settlement.

Unique to the industry, we do not immediately debit customers when a chargeback is initiated. Instead, we assign a dedicated Chargeback Specialist who will be the City’s advocate in the chargeback process. This Chargeback Specialist provides end-to-end chargeback support, working closely with the City’s designated point of contact. The specialist provides information about when a new chargeback is initiated. They also collect supporting documentation (i.e. tax statement, vehicle registration renewal, etc.), and provide status updates on the chargeback process until the case is closed.

Online Information Reporting System9. Describe all reports available and the software used to receive and view reports. Provide an overview of reporting cycles, procedures, and capabilities. Provide a sample of each detail and summary report available or a link to sample reports online.Our online Report Wizard provides access to real-time reporting 24/7/365 with the ability to export Excel reports (via standard, CSV or XML formats) and group data as needed to support merchants under a single agency. Reports can further be configured to track routine activity on a scheduled basis. Using our reporting categories, City of Fargo staff can pull reports to track at a detailed transaction level for each line of business, user, timeframe or workstation. To view consolidated payment totals, City staff can review one of our summary reports which shows transaction totals by payment method (Visa, Mastercard, Discover, American Express, eCheck), line of business, MID or user.


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Our Realtime Monitor report shows all payments made during the day; it is updated every 10 seconds. The City can also run customized daily reports. With our Report Scheduler, standard and customized reports of the City’s choosing can be delivered on a daily basis. For more on these capabilities, please refer to the Reporting screenshots in Appendix B for sample of the Report Wizard. We ask that these screenshots remain confidential.

10. Define the download capabilities, level of customization, and drill down capabilities available on online reporting and reports. Describe the daily and/or monthly reconciliation reports available to the merchant and provide sample reports. The following categories need to be defined:

c) Standard reports (transaction reports, funding reports, etc.)Our standard real time reports include:

Detail Report Detail Report by User Detail Report by Work Station Summary Report Summary Report by User ACH Ledger Report (Electronic Checks)

d) Special reporting capabilitiesThe Report Wizard offers nine different custom report options:

Detail Report Detail Report by User Detail Report by Work Station My User Detail Report Summary Report Summary Report by User Settlement Report ACH Ledger Report Surcharge Ledger Report

e) Level of detail availableThe City can parse data and pull reports at a detailed transaction level for each bureau, user or workstation. Reports can be customized further by time, transaction type, amount and other variables.


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f) Retrieval capabilitiesOur online Report Wizard provides access to real time reporting

24/7/365.

g) Imaging capabilitiesOur Report Wizard does not feature imaging capabilities at this time.

h) Reporting frequencyReports may be pulled any time or delivered at whatever frequency the City desires.

11. If multiple merchant numbers are used describe how multiple merchant numbers are reported and the flexibility afforded the merchant for customizing the reports. Can the merchant "roll up" specified groups for reporting independent of other groups?With our Report Wizard, each MID may be viewed separately or in groups. The City may create as many custom groups of MIDs as needed.

12. Describe your capability to store and retrieve transaction information, including signatures for bank card transactions? Provide details.Reports are hosted by Certified Payments and archived for use in compliance with state-affiliated mandates (average of three years). We do not offer signature capture at this time.

Card Acceptance/Interface Processing13. Describe the hardware necessary for acceptance of credit and debit cards (a) with card present, (b) when card not present, (c) via e-Commerce (internet), and (d) pin based debit.We provide all the hardware necessary for the acceptance methods stated above. Our current POS system for card present and pin-based debit payments is the Ingenico iPP320. This handheld-sized unit can accept EMV chip and PIN, magstripe and NFC payments (when available). We provide it as a fast, secure POS system designed for multiple payment circumstances. Card not present payments can be made online or by virtual terminal.

Our easy to use, secure web platform is an ideal portal for the payment types cited in the RFP, such as the Fargo City Hall Auditor’s Office and Fargo Public Libraries. Our solution is mobile friendly, allowing residents to make payments via their smartphone or tablet via our dynamic webpages.


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14. Describe all available equipment your firm provides clients for processing. Does the firm provide this equipment on a lease or purchase basis? Do you offer an equipment maintenance plan? If so, what is the turnaround time and costs involved?We provide all of the equipment needed to use our solutions and products, including terminals, readers, accessories and encryption. This means no warranty, lease or purchase is needed. In the event that a piece of equipment breaks or proves faulty, the City will provide a replacement part or new equipment within 24 hours. The investment for EMV readers is $230 per unit. Based on processing volumes, Certified Payment will subsidize some or all of the investment for EMV readers.

15. Describe in detail how your firm can process transactions from various gateways. Provide a list of all payment gateways supported and address all fees for setup, monthly recurring charges and per transactions fees on the Cost of Services Form.Our proprietary payment gateway, the only one we use, delivers superb performance and uptime, regardless of any spike in payment volume. Because our gateway is maintained in-house, we do not charge any set up, monthly recurring, or gateway fees.

Third-Party Processing16. Do you rely on third parties to process your merchant credit card transactions? If so, explain and provide the years of service you have been doing business with them and describe your relationship with your third party processor.We use Vantiv as our processor and have partnered with them for over 10 years. All back-end processing, such as data storage, settlement and funding, is handled in-house by Certified Payments.

17. Describe in detail how your services are integrated with third party software, websites and gateways.We have an established history of partnering with government software service providers to facilitate smooth transitions.

With our REST API program, Certified Payments can enable a fully operational integration in as little as five days. Certified Payments is proud of the fact that we maintain this rapid integration timeframe with an ever-expanding list of leading government software providers, as more and more government entities opt for our payment processing services over the competition.


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18. Identify your payment gateway provider and the number of years you have had a relationship with them.We only use our own proprietary payment gateway.

Payment Card Industry Data Security Standards19. Describe your PCI-DSS compliance status and program. How do you maintain your compliance with the PCI standards?Certified Payments is both PCI v3.2 and SSAE 16 (SOC I) Type II compliant. By the very nature of what we do, PCI compliance is of utmost importance. To maintain strict adherence to PCI standards, we have a dedicated security team in place at our corporate office. When that team is alerted about a PCI violation, we promptly investigate, working with the card issuers and the banks impacted to resolve the issue at hand. 20. Is your organization and all of your contractors, subcontractors and third-party processors, in compliance with all applicable PCI DSS standards? Have you been certified as compliant by a qualified third-party assessor? Please name the assessor.Our only third-party contractor is our front-end payment authorization and processor partner Vantiv, which has been independently certified as PCI compliant. Our 2017 Attestation of Compliance, found in Appendix A, was performed by IBM.

21. What is your role in supporting merchant PCI compliance and how do you help a client like the City of Fargo maintain its compliance?By implementing the Certified Payments’ solution, the City will achieve PCI compliance with all payment methods, as Certified Payments’ products are already compliant with PCI standards. As to how you can maintain compliance for web, counter and card not present payments, we recommend at a minimum that the City secure all workstations and network connections at the deployment level. This will help prevent unauthorized access. We can make more specific recommendations as we learn more about the City’s existing efforts to maintain PCI compliance.

Alternative Payment Services


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22. Discuss optional and alternative payment services that you believe may help the City expand merchant credit card payment options for its departments?A few alternative payment options that are of interest are:

a) Mobile PaymentsSmartphone payment (Apple Pay, Google Pay) compatibility is under development and is slated for release in Q4 2019.

This will enable City of Fargo departments to accept Apple Pay, Google Pay and similar mobile wallet payment options. Residents may always make payments via their smartphone or tablet via our dynamic webpages.

1. Does your mobile reporting service work on the iPhone, Android Phones and/or other devices?We do not currently offer this service.

2. What software (names and version numbers) is required to use your mobile reporting services?As stated above, we do not currently offer this service and thus do not maintain software requirements.

3. How many customers do you have using your mobile merchant card processing product? How many transactions are you processing monthly? How many dollars are processed monthly?We do not offer mobile reporting at this time.

b) Contactless Payment Cards/Wallet Solutions i.e. MasterCardPayPass.We do not currently offer contactless payment cards/wallet solutions, but these solutions are on our product roadmap.

c) Marketing and promotion campaigns to increase adoption of merchant credit card payments.

We will work with your designate to create signs, posters and other promotional collateral to illustrate the City of Fargo's merchant card processing capabilities.

d) Charitable donations as an addition to the transaction.We recognize that many governments would like to offer charitable donation options with municipal payments. While we do not currently offer this service, we can work with the City to explore this option.

Implementation


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Provide a detailed description of the implementation process, including testing and a suggested Implementation Schedule. The Implementation Schedule must outline the milestone dates to accomplish and should include detailed tasks, dates and resources assigned and identified for each milestone.We have a proven track record in delivering a swift and thorough implementation process. If selected, our customized implementation schedule would be created with the City to provide concrete milestones and timing. That transition process would begin with a reprogramming of the City’s existing equipment (if we can achieve greater cost savings by re-purposing hardware you no longer need, we will do it), and/or providing any new equipment necessary. We would then work with the City on all conversion activities, providing support and training as well as standard and customized reporting. No added implementation efforts would be required for the City to begin using our services. Upon execution of a Service Provider Agreement and required Bureau Setup Forms, the City could be ready to accept payments within five business days. Individual milestones would be discussed and outlined with the City to help customize the process.

Describe support provided during implementation, including training, technical assistance, user manuals and on-site visits.During implementation, we offer our Certified Payments’ client support team, comprised of three Customer Care Specialists and three Account Executives. This team and your Account Manager ,David Myers, will provide customized support to the City during implementation. An important part of our conversion process includes training that ensures the City’s designated employees can use Certified Payments’ solutions. This implementation training can take place in-person or remotely on a timeline the City desires.

Describe support provided after implementation. Does the Company have local representation?Certified Payments can provide both personalized on-site training and ongoing remote support. We have taken this approach with many other


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customers and find that it helps both the administrators and frontline staff transition effectively to Certified Payments’ platform.

We also provide technical support for all of the software and equipment we provide. In the event an item of hardware is determined to be damaged or the root of a technical issue, we will replace it within 24 hours.

Although we do not have local representation in North Dakota, our office is located only 20 minutes from Dallas-Fort Worth International Airport, which offers direct flights to Fargo should a major issue arise.


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References

Company Name:

Simpson County Tax, MS Assessor/Collector

Contact Name: Charles BaldwinAddress: 100 E Court St #1, Mendenhall, MS 39114Contact Phone: 601-847-1744Contact Email: [email protected] of Services:

Provide credit card processing for all payments made via web, counter, and IVR.

Company Name:

Andrew County, MO Tax Collector

Contact Name: Phil RogersAddress: 411 Court St, Savannah, MO 64485Contact Phone: 816-324-3914Contact Email: [email protected] of Services:

Provide credit card processing for all payments made via web, counter, and IVR.

Company Name:

McLennan County, TX Tax Collector

Contact Name: Randy Riggs Address: 215 N. 5th Street, Room 118, Waco, TX 76701Contact Phone: 254-757-5130Contact Email: [email protected] of Services:

Provide credit card /ACH processing for Property Tax and Motor Vehicle Registration payments made via web, counter and IVR; this includes three locations and also integration with ACT tax software.

Company Name:

Collin County, TX County Clerk

Contact Name: Tonya Kellogg Address: 2300 Bloomdale Road, Ste 3160, McKinney, TX 75071Contact Phone: 972-548-4150Contact Email: [email protected] of Provide credit card processing for all payments submitted


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Services: to clerk’s office, including those made via web, counter and IVR.

Company Name:

Denton County

Contact Name: Michelle French - Tax CollectorAddress: 1505 E. McKinney Street, Denton, TX 76209Contact Phone: 940.349.3500 x3506Contact Email: [email protected] Date: 2011 to PresentDescription of Services:

Provide credit card processing for Property Tax and Motor Vehicle Registrations (6 locations


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County Absorbed Cost Model

Payment Method

Interchange Rate

Basis Points

Transaction Fee

Visa Current Rate 40 $.10MasterCard Current Rate 40 $.10

Discover Current Rate 40 $.10American Express Current Rate 40 $.10

EXAMPLE $100 Transaction w/ 1.60% Interchange Fee(1.60% x $100 = $1.60) + (.0040 * $100 = $.40) + $.10 = $2.10

$2.10 on a $100 Transaction*Interchange fees vary for from brand to brand and cost variances may occur

Convenience Fee Model(fee passed on to customer)

Payment Method

Convenience Fee Rate

Basis Points

Transaction Fee

Visa 2.40% 0 0MasterCard 2.40% 0 0

Discover 2.40% 0 0American Express 2.40% 0 0

EXAMPLE $100 Transaction w/ 2.40% Convenience Fee$100 x 2.40% = $2.40

Additional FeesMonthly Maintenance $0Online Access $0Statement Fee $0Terminal Fee $0PCI Fees $0Batch Fees $0Address Verification Service $0Chargeback Fees $0


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Card Swipe Devices Free to City of FargoEMV Devices If required - $245 per unitComputer Programming $0Annual Fee $0Monthly Minimum Fee N/A


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