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5955-3 CC Check Processing Svc - SOW - EX 3SCOPE OF WORK & SPECIFICATIONS PART 1: DEBIT/CREDIT CARD PROCESSING The scope of work will be finalized upon selection of Respondent. The City desires debit/credit card processing services for the purpose of collecting payments for 24 Respondent accounts (POP and/or MOTO) and 3 internet accounts (Utility Billing, Municipal Court and Building Inspections). It is critical that the Respondent provide complete and accurate processing for Visa, MasterCard and Discover card transactions accepted by the City of Denton in compliance with Payment Card Industry (PCI) standards. The City only accepts Visa, MasterCard and Discover. The contract period will be five (5) years beginning June 1, 2016 and ending May 31, 2021. Either party may terminate the contract by providing at least a ninety (90) day written notification of said termination. The contract will also provide for an extension period not to exceed one hundred and twenty (120) days for the transition to a new vendor, if needed. Internet payments for the City’s library are made through their Millennium software using PayPal but must be processed/funded through the selected Respondent. Exhibit 1 contains the City’s average Merchant Identification Number (MID) activity over the past 12 months. Using Exhibit 1, please indicate the cost of providing each of these services on a per-item, “Interchange Plus” basis. If appropriate, identify other services not listed and their associated costs. Any service not appearing or that does not have a fee indicated on the Attachment A will be considered to be free of charge in the Respondent Services Contract. Please attach a sample monthly statement. List any other applicable credit card charges, including information on discount rates, government rates, and MasterCard/Visa utility rates, also monthly maintenance, statement, software and minimum transaction fees. Only the credit card charges listed on Attachment A and in this section will be acceptable in the monthly statement of charges. Please describe how phoned credit card transactions will be handled. Describe in detail how the City of Denton’s processing program will be operated on a day to day basis. Provide transaction flow diagrams whenever possible. Identify all subcontracts to be used for these services and what procedures will be used to monitor quality. Explain what back-up procedures will be established in the event of a problem at the City of Denton and with the Respondent. Describe Respondent’s capability to meet the following requirements for internet, POP and MOTO. AAVS and CVVI verification required. Daily settlements based on Central Standard Time (CST). Funds must be available the same day, preferred, or next day. Deposits to the City’s bank account must be made daily and must reflect daily batch settlement totals. Must provide on-line reporting services allowing viewing capabilities of all transactions by Merchant Identification Number (MID). Service must allow exporting and downloading of all transactions for the City. Must provide chargeback information by e-mail, fax and/or on-line application. Must provide internet gateway service. Describe how Respondent will notify payer of the dollar amount of all payments and obtain the payer’s approval (electronic or otherwise) of such payments prior to initiating credit and/or debit authorizations. Describe how Respondent will provide payers with electronic confirmation of payment transactions. Describe how Respondent will electronically transmit all card transactions to the appropriate card processing center, in real time, as the transactions occur, and balance and reconcile electronically captured transactions on a daily basis. Describe how Respondent will retain credit authorization logs and transaction records for such period of time as required by applicable law and the rules, regulations and operation procedures of the respective card organizations, and records shall contain the following information: transaction type, date and time of transaction, City account number, and card’s account number and expiration date, card holder’s name, dollar amount of transaction and approval code. Provide City of Denton with logos, graphics, and other appropriate marketing materials for citizen communication in English and Spanish. Provide City of Denton with monthly reports (in a mutually agreed upon format) summarizing use of the services for the applicable reporting period. Sample report must be included in this proposal. Provide internet payment service in both English and Spanish. Explain how the Respondent will handle any copy requests or chargebacks for the City of Denton. Red Flag Act Rules and Fair & Accurate Credit Transactions (FACT) Act. The Respondent is required to comply with the Red Flag Rules and the FACT Act. The Respondent must ensure that all nonpublic personal customer identity information provided by the City remain confidential by maintaining safeguards for the information received. The Respondent will not disclose or use such information for any purpose other than is reasonably necessary to fulfill the purpose for which such information was provided by the City or otherwise permitted by applicable laws. A signed service provider acknowledgement must be completed in conjunction with the Respondent Services Contract. System Requirements Point of Purchase (POP) processing terminals for handling electronic check verification and/or guarantee, and batching and debit or credit card authorizations are to be connected to existing Microsoft Windows-based desktop computers through standard peripheral connections, such as COM or USB (Preferred). The terminal peripherals would utilize software present on the computer, either an installed software client or a web-browser-based control interface, to communicate via the internet with the Respondent’s host system for purposes of communicating transaction information at the point of purchase. Respondent software would provide for receipt printing of all transactions, with capability to re-print receipts if necessary. Software interface must be capable of handling both card-present, and card-not-present transactions and associate each with the correct fee schedule. Transaction data would need to be captured and cataloged according to the following hierarchy: City of Denton >> Department >> Location >> Operator >> Batch ID. Reporting capabilities would need to be provided to allow the City to research and reconcile transactions passing through the Respondent. This reporting should be web-based, and accessible in real-time. Transaction data should be captured either locally on City provided database and hardware platforms or remotely at the Respondent’s location as long as reporting needs are effectively met. Point of Purchase Equipment Please list any hardware/software requirements for this service and the costs to replace existing hardware/software. Please list financing options or other replacement considerations Respondent may desire to propose to the City. Debit/Credit Card Terminal – Industry standard hardware utilizing 3-track magnetic stripe reader, integrated PIN pad and display unit with COM or USB (Preferred) connectivity to interface with current Microsoft Windows-based desktop computer. Terminal must be EMV capable (contact/contactless). Terminal should have the ability to be placed within the customer’s reach for transaction processing so as to afford the customer the added security benefit of card retention. Terminal display would be programmed with all relevant customer prompts and responses so as to minimize cashier instruction. Receipt Printer – Industry standard thermal printer hardware using Parallel, COM or USB (preferred) communication to connect to current Microsoft Windows-based desktop computer. Receipt would provide the following information for all transactions: (1) credit cards - City logo or name, department, address, phone number, operator, transaction date and time, card holder’s name, last four digits of card used, transaction amount, approval code, other City required data, and signature line. Software Updates The City expects that software “bugs” will be addressed within a reasonable and fair time frame under the basic maintenance agreement held with the Respondent. A software “bug” is defined as a glitch, anomaly, or other reproducible condition that materially affects the proper operation of the software as designed, and prevents the City from using the software as intended. The City may request additional features or functionality during the duration of the contract. City and Respondent will agree whether these enhancements constitute a material change above and beyond what is covered under the standard maintenance agreement for the software. In the event that the changes represent a billed-for service, the City will have the option to purchase the enhancement, and incorporate the ongoing support for that enhancement as part of the standard maintenance agreement. Respondent is responsible for ensuring that their software functions on current mainstream desktop computers. This includes hardware not to exceed 4 years in age, and the current public release of the Microsoft Windows desktop operating system for business and professional use with all required security patches installed. If the client software is deployed in a browser, it must be compatible with the current retail release of Microsoft Internet Explorer (Internet Explorer II) with all required security patches installed. It is the Respondent’s responsibility, under the terms of the maintenance agreement, to resolve issues arising from the application of critical Microsoft patches that may interfere with the proper operation of the Respondent’s software. City is expected to have access to new releases of software free of charge under the terms of the annual maintenance agreement. Telephone Lines and Internet None of the peripherals used in any solution will use a conventional telephone line to process transactions; all transactions will be handled over the internet. In the event that internet processing is unavailable, transactions will be queued for processing at such time as Internet connectivity is restored. This queuing process may be manual, or integrated into the software (preferred). Provide an explanation of how face-to-face credit card transactions can be authorized and then processed later in the Respondent software. Reporting Requirements The City of Denton will require on-line access to daily funding notices, exception items and weekly and month-end summary reports. One hard copy of each report must be sent to the City of Denton by U.S. mail to the attention of the Assistant Director of Finance. The daily funding notice must also be faxed or e-mailed each day. The City of Denton has a tiered account structure and reports and transaction information must be accessible within each tier. For this proposal, describe the contents and distribution frequency of all of the reports that will be provided to the City of Denton. Sample reports must be included in the proposal. Operations and Technical Support Requirements The processing system provided must be fully automated and easy to use. Describe in detail how the program will be operated on a day-to-day basis. Additionally, explain what back-up procedures will be established for each item. Supplies/Equipment It is critical that the Respondent provide the City of Denton with the necessary equipment and supplies for this program. Describe the entire process in detail and include: What equipment/supplies will be needed? Who should order them and how? From whom and where they are to be ordered? What time schedules should be used for placing orders? Please list the costs to replace existing hardware/software. Please list financing options or other replacement considerations Respondent may desire to propose to the City. Error Detection It is important that the Respondent does everything possible to identify errors for the City of Denton. Describe actions the Respondent will take to identify and correct errors. Include how different errors will be handled such as interchange rates, late daily settlements, etc. Also include methods for notifying the City of Denton of these errors and advise what level of support front line custodians will be provided during all business hours. POP Signage Identify the requirements regarding POP signage and formats for mail-in forms. Please describe as much of this information as possible. Chargebacks and Copy Requests The City of Denton expects to maintain transaction copies. Please explain requirements that must be followed regarding these receipts and the penalties for not doing so. Explain how the Respondent will handle any copy requests or chargebacks for the City of Denton. The City of Denton expects the Respondent to fully represent its position in the event of any type of dispute with one of the card companies. Training and Reference Manuals It is the Respondent’s responsibility to ensure that the City of Denton staff is thoroughly trained before the program launch will be considered final. Describe the requirements for installing and using the equipment. Include explanations of time, skill, and resource requirements. Describe any manuals, videos, or other materials that will be provided; if possible provide samples. Escalation Procedures Indicate what procedures are in place in the event that a problem with the program needs to be brought to the attention of the Respondent’s management. This applies to both the implementation process and for situations that may occur once the program is fully operational. PART 2: OPTIONAL ELECTRONIC CHECK PROCESSING The scope of work will be finalized upon selection of Respondent. The City desires electronic check processing services (conversion with verification and guarantee) for the purpose of collecting payments for 24 merchant accounts (Point of Purchase - POP and/or Mail Order/Telephone Order - MOTO). In order to minimize the risk of fraudulent check transactions and minimize resources spent on the collection of returned checks, it is critical the Respondent provide check conversion with verification and guarantee. Exhibit 1 contains the City’s average check processing activity over the past 12 months. Using Exhibit 1, please indicate the cost of providing each of these services on a per-item basis. If appropriate, identify other services not listed and their associated costs. Any service not appearing or that does not have a fee indicated on the Attachment A will be considered to be free of charge in the Services Contract. Please attach a sample monthly statement. Check Conversion (Verifications and Guarantee) Provide a service that converts paper checks into electronic items at the point of purchase and accounts receivable environment (POP & MOTO) and initiate a direct ACH deposit of funds into the City’s bank account. Converted checks will either be verified or guaranteed depending on location within the City. Explain the services available. Explain the check conversion process and any requirements for the City in handling or retaining voided or electronically processed checks. Must provide daily settlement of the City’s transactions in accordance with City’s approved procedures and time periods. Cash receipts in the settlement account must reconcile with the submitted batch report each day. Describe the service’s reporting capabilities. Must have the capability of providing daily batch reports by cashier and location reference number. Explain how returned checks will be handled when using check verification or the check guarantee services listed above. Check Verification Provide a service that uses negative and activity data, in addition to other tools to issue a response code back to the City allowing the City to determine whether or not to accept a check. Please describe the services available. Check Guarantee Provide a service that uses negative and activity data, in addition to other tools to issue a response code back to the City allowing the City to determine whether or not to accept a check. Checks approved through this service will be backed by the Respondent. Please describe the services available. The City of Denton is to receive 100% of its check collections. Returned checks will be the responsibility of the Respondent. Explain how returned checks will be handled. Identify all subcontractors to be used for these services and what procedures will be used to monitory quality. Technology Requirements It is critical that the system installed at the City of Denton be a fully hosted system, incorporates current technology and fully integrates with our existing web processor and provides smooth and efficient transaction processing. Describe the type of equipment and support to be provided. Respondent must be able to fully integrate into the City’s existing software via an Application Program Interface (API) set up by Paymentus (formerly, Teleworks), an outside technology firm contracted by the City. Point of Purchase processing terminals for handling check conversion (verification and guarantee), and batching are to be connected to existing Microsoft Windows-based desktop computers through standard peripheral connections, such as COM or USB (preferred). The terminal peripherals would utilize software present on the computer, either an installed software client or a web-browser-based control interface, to communicate via the Internet with the Respondent’s host system for purposes of communicating transaction information at the point of purchase. Client software would provide for receipt printing of all transactions, with capability to re-print receipts if necessary. Software interface must be capable of handling check transactions and associate with the correct fee schedule. Transaction data would need to be captured and cataloged according to the following hierarchy: City of Denton >> Department >> Location >> Operator >> Batch ID. Reporting capabilities would need to be provided to allow the City to research and reconcile transactions passing through the Respondent. This reporting should be web-based, and accessible in real-time. Transaction data should be captured either locally on a City provided database and hardware platform or remotely at the Respondent’s location as long as reporting needs are effectively met. Provide technology specifications for use of all proposed electronic systems and services. Point of Purchase Equipment Please list any hardware/software requirements for this service and the costs to replace existing hardware/software. Please list financing options or other replacement considerations Respondent may desire to propose to the City. Check Processor – Industry standard hardware utilizing horseshoe bend-style check processor with COM or USB (preferred) connectivity to interface with current Microsoft Windows-based desktop computer. Processor must perform MICR capture, two-sided check imaging, and electronically franked “presented”. Escalation Procedures Indicate what procedures are in place in the event that a problem with the program needs to be brought to the attention of the Respondent’s management. This applies to both the implementation process and for situations that may occur once the program is fully operational.