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5955 CC-Debit Addendum 2 Purchasing Department 901-B Texas St. Denton, TX 76209 (940) 349-7100 www.dentonpurchasing.com ADDENDUM #2 RFP # 5955 SUPPLY OF DEBIT/CREDIT CARD AND ELECTRONIC CHECK PROCESSING SERVICES FOR THE CITY OF DENTON Issue Date: November 17, 2015 Response due Date and Time (Central Time): Tuesday, December 8, 2015, 11:00 A.M. 5595 Debit/Credit Card and Electronic Check Processing Addendum # 2 Debit/Credit Card Processing 1. Who is the current incumbent for debit/credit card processing? The City’s current incumbent for Debit/Credit Card Processing is Elavon. 2. On a scale of 1 to 10 with 1 being extremely unhappy and 10 being extremely happy, how would you rank the incumbent? The City cannot comment on the incumbent’s performance. The City is required to go through a formal solicitation process every five years. 3. We see you mentioned Paymentus in the RFP, is the winner of this contract to replace or work with Paymentus? Paymentus (formerly, TeleWorks) serves as the City’s Application Program Interface (API) for debit/credit card payments made over the Internet and IVR (Interactive Voice Response) for Utility Billing (Customer Service) and the selected vendor would be expected to work with them. Paymentus also interfaces with North Star, the Utility Billing A/R system. However, the City is willing to review a single solution that includes API, bill presentment, point of purchase, Internet/IVR payments, E-Check, recurring card payments, outbound notifications, front portal and back end processor. The City’s Municipal Court utilizes Incode, the Building Inspections Department utilizes TrakIt and the Library utilizes Millenium/Sierra and the selected vendor will need to work with their software provider for debit/credit card payments made over the internet. 4. What CIS or cashiering software are you currently using? Each City department has software specific to their location which does not integrate into the City’s financial system. Currently, we are using Elavon’s platform for card/check processing (POP/MOTO/Internet). 5. Are you looking for PIN Debit pricing? Yes. The City is not currently accepting PIN Debit transactions but would like to provide this service with the new contract and implementation of new EMV capable equipment. 6. Are you currently absorbing or are you charging the customer a convenience fee or both? The City currently has one internet location (Utility Billing) that charges a convenience fee but only for commercial accounts. All others are absorbing the processing fees. 7. Are you currently offering eBill presentment and if so, who is the incumbent and what is the cost? The City does offer eBill presentment through eCares, a North Star product. The City is willing to review alternative solutions that may be proposed be a vendor. 8. If not doing eBill, on a scale of 1 to 5 with 5 being extremely important, how would you rank your desire for eBill? Not applicable, the City currently offers eBill. 9. For each application/department (e.g., Utilities, Courts, Building Inspections, Library, etc.), please specify whether the e-payment solution and related transaction processing will be funded via: (1) fees paid to the vendor by the City (“Client-funded”) versus (2) fees paid by the end-user payer/customer (“Convenience Fee-funded”)? The City currently has one internet location (Utility Billing) that charges a convenience fee but only for commercial accounts. All others are absorbing the processing fees. 10. For each application/department (e.g., Utilities, Courts, Building Inspections, Library, etc.), please provide projected annual transaction volumes (by both the number of transactions (#) and by value of transactions ($-amount)), distributing the transaction volumes across the (1) payment methods (e.g., credit/debit card or e-check/ACH) and (2) payment channel (Web, IVR, City Customer Service Representative (CSR), vendor’s Call Center, Recurring, Point of Sale, etc.) that are envisioned for each application. The City has provided all volume and value information in Exhibit 1 – Pricing Sheet included with the Request for Proposals. 11. For each application/department (e.g., Utilities, Courts, Building Inspections, Library, etc.), for which electronic billing presentment is desired, how many bills are expected to be available for electronic presentment annually? The City only offers bill presentment for utility billing and approximately 86,000 bills are presented annually. 12. For each application/department (e.g., Utilities, Courts, Building Inspections, Library, etc.), for which on site card payments are desired, how many Point of Sale (POS) credit card terminals are desired? The City desires to have 50 terminals. 13. For how many unique utility service accounts does the City bill? How many utility bills are issued annually? This City has approximately 60,000 unique utility service accounts and approximately 700,000 utility bills are issued annually. 14. Which departments/application(s) (e.g., Utilities, Courts, Building Inspections, Library, etc.) does Paymentus support? Paymentus only supports the City’s Utility Billing (Customer Service) and serves as the API for Internet and IVR (Interactive Voice Response) payments. Paymentus also interfaces with North Star, the Utility Billing A/R System. 15. Does the City seek proposals for solutions that: (1) Support the processing of payments initiated through Paymentus or (2) Support payment initiation (in lieu of Paymentus) as well as the corresponding processing of payments? The City is willing to review all options as it relates to payments. The City is willing to review a single solution that includes API, bill presentment, point of purchase, Internet/IVR payments, E-Check, recurring card payments, outbound notifications, front portal and back end processor. 16. Between which entities do the referenced API support data exchange: (1) the City’s A/R system and Paymentus or (2) the Paymentus and the Merchant acquirer/processor? Paymentus supports data exchange for both the City’s A/R system and processor (Elavon) but only for Utility Billing. 17. Per the Solicitation Checklist, vendors should review Exhibit 3 – Scope of Work. This Scope of Work document also contains questions. Do these questions require response as part of vendors’ RFP response? If so, where in the document should they be placed? The City requests a response to all questions, including those in the Scope of Work. The City prefers that responses to questions in the Scope of Work be provided in that document. 18. Per the RFP, responses should be limited to 200 pages. Does this include any appendices we may need to provide (e.g., sample reports, sample contract)? No, this does not included required supplemental information requested by the City. Please note that large files and zip files may not make it through our email system, or may take significant time to transmit via email. We request smaller documents to ensure receipt via email. Also, please note that the responses are due at the City by 11:00 A.M., C.S.T., large emails sent by respondents may not make it through our email until after that time. We suggest you send smaller files and in plenty of time to clear the email server before 11:00 A.M., C.S.T. 19. Per the City’s timeline, questions are due Friday, November 6 and responses are due Tuesday, November 17. This will not allow vendors much time to finalize their response after the City supplies responses. Would the City extend the deadline so vendors have adequate time to develop a comprehensive response? The due date for proposal has been extended and they are now due by 11:00 a.m. on December 8, 2015. 20. If a vendor requires the use of a third party partner to meet the City’s requirements, would the City be willing to contract with more than one vendor? The City is willing to review all options but prefers a single contract which may or may not involve the use of a third party partner to provide certain services. 21. Regarding Exhibit 1, can you confirm based on the pricing sheet you are processing approximately $73M in sales volume annually for both credit card and check? The City confirms that this is accurate based on the last 12 months of activity. 22. Regarding Exhibit 1, can you also confirm based on the pricing sheet you are processing approximately 2,277,576 transactions (credit card and check) annually? The City confirms that this is accurate based on the last 12 months of activity. 23. How many merchant accounts (MIDs) does the City process under today? The City has 48 MIDs. 24. Do you currently use terminals? Can you provide us information on your point-of-sale terminals by location? What are the makes and models? Do you own or rent your terminals? Are they EMV compliant? The City’s current equipment is not EMV capable and the City desires to replace all equipment. The City desires to receive options for purchasing and/or leasing replacement equipment, including any special consideration a vendor might provide that would reduce the City’s overall cost. The current equipment is RDM 7111F and the City owns the terminals. 25. What PIN pads are used today? Please provide the number of each, manufacturer, make and model and if owned, rented or leased. The City desires to replace all current equipment and has no PIN Pads in use. 26. If any location is using a POS system, please provide the company name, product name, and version, including service packs of each system. The City utilizes Elavon’s Converge (previously, VirtualMerchant) system. 27. If any of the POS systems use a third-party payment software/middleware application, please provide the company name, product name and version, including service packs of each and the POS system it is used with. The City utilizes Elavon’s Converge (previously, VirtualMerchant) system. 28. If any of the POS systems use a third-party payment gateway, please provide the company name, product name and the POS system it is used with. The City utilizes Elavon’s Converge (previously, VirtualMerchant) system which also serves as the payment gateway. 29. If a third-party payment gateway is used for web payment processing, please provide the company name and product name of the gateway and areas using this acceptance type. The City utilizes Elavon’s Converge (previously, VirtualMerchant) system which also serves as the payment gateway. 30. If a third-party payment gateway is used for IVR payment processing, please provide the company name and product name of the gateway and areas using this acceptance type along with the company name and product name of the IVR system. The City does not utilize a third-party gateway for IVR payments. 31. If a payment gateway is used for over the counter, mail or telephone payment processing, please provide the company name and product name of the gateway, locations using this acceptance type and how it is used in conjunction with each acceptance method. The City utilizes Elavon’s Converge (previously, VirtualMerchant) system which also serves as the payment gateway. 32. Who funds the City for Discover transactions today? Elavon funds all payment cards accepted by the City (Visa, MasterCard and Discover only). 33. Are you PCI compliant today and what is your PCI level? No. However, the City is working toward compliance for Level 3 processing. The City desires to receive card processing options that may assist with achieving compliance. 34. Does any location use tokenization today? If so, please provide the tokenization method and product used. The City does not currently use tokenization but desires to implement tokenization in conjunction with award of this contract. 35. Does any location use point-to-point (P2P) or end-to-end (E2E) encryption today? If so, please provide the encryption method and product used. The City does not currently use encryption but desires to implement encryption in conjunction with award of this contract. 36. Do you have an EMV strategy? If so, what is your timeframe to implement and what solution and EMV devices (manufacturer, model name and number) are you considering? The City desires to implement EMV capable equipment in conjunction with award of this contract. The City is willing to review all equipment options. 37. Who is your current merchant card processor? When does your contract expire? The City’s current processor, except for the City’s Parks Department, is Elavon. The contract with Elavon is due to expire on May 31, 2016 but may be extended contingent on this Request for Proposals. The Libraries processor for internet transaction is PayPal. 38. What is the time frame of your current funding for payment of your settlement items? How are you funded – wire or ACH? What depository bank are your funds settled to? The City prefers same day, or next day, funding by ACH. The City’s current depository bank is Wells Fargo although the contract expires on May 31, 2016. The City is currently in the process of conducting an RFP for bank depository services to be awarded at the same time as this contract. 39. Do you currently have a recurring billing process in place? The City does not currently have a recurring billing process for debit/credit card but is interested in implementing this service. The City does have a recurring billing process for e-check payments. 40. Do you have a need for B2B or Purchasing Card Level II and/or Level III? No. 41. Do you currently charge a convenience fee for any of your payment acceptance processes? If so, do you use a single or two-transaction model? If you use a two-transaction model, who receives funding for the second transaction? The City charges a convenience fee for commercial accounts in Utility Billing only through a two-transaction model. Elavon receives funding for the second transaction. 42. Regarding Part 1, requirement 16. a., would a browser based interface be acceptable instead of a software based interface? Yes. 43. Regarding Part 1, requirement 17.b, is there a specific POS application or system that this device is required to interface with, and if so who will develop the interface to the computer? No. 44. Regarding Part 1, requirement 17. c., is there a specific POS application or system that will drive the printer? Who would develop the interface from the device response back to the Receipt Printer and/or POS system or application? There is no specific POS application or system that will drive the printer. The vendor will be responsible for any interfaces between receipt printer and POS system/application. 45. Regarding Part 1, requirement 18, are all of the requirements pertaining to the POS system requirement? The vendor will be responsible for all POS system updates. 46. Regarding Part 1, requirement 18. d., do the City’s current maintenance contracts include upgrades at no cost? Yes. 47. Regarding Part 1, requirement 20. a., will the City accept email delivery of the reports to the Assistant Director of Finance? The City will accept email delivery of reports, if available. 48. Will the City of Denton need new hardware/equipment or are they looking to use the existing system(s)? If so, can you provide what those are to ensure they are compatible. The City’s current equipment is not EMV capable and the City desires to replace all equipment. The City desires to receive options for purchasing and/or leasing replacement equipment, including any special consideration a vendor might provide that would reduce the City’s overall cost. 49. Please describe the role Paymentus plays in your processing? Are all payments, both card and check, ran through this system? If so are you just looking for a backend processor or are you looking for replacements or alternatives to Paymentus? Paymentus (formerly, TeleWorks) serves as the City’s Application Program Interface (API) for debit/credit card payments made over the Internet and IVR (Interactive Voice Response) for Utility Billing (Customer Service) and the selected vendor would be expected to work with them. Paymentus also interfaces with North Star, the Utility Billing A/R system. However, the City is willing to review a single solution that includes API, bill presentment, point of purchase, Internet/IVR payments, E-Check, recurring card payments, outbound notifications, front portal and back end processor. The City’s Municipal Court utilizes Incode, the Building Inspections Department utilizes TrakIt and the Library utilizes Millenium/Sierra and the selected vendor will need to work with their software provider for debit/credit card payments made over the internet. 50. I have requested some information directly from Paymentus regarding the API but was wondering if there was a specific contact there we should be contacting? The City prefers that prospective respondents not communicate with the City’s current vendors in conjunction with this Request for Proposals. 51. You mention the Library runs through PayPal but you need a processor to handle the transactions, are you using the PayFlow pro product? Yes. 52. Can you please provide a. How many MIDs you currently have? 48. b. How many users you would need to have access to the systems? 100. c. Are the MIDs representative of different physical locations in the City or different departments within the City offices? Both. Check Processing 53. Would the City be open to full service kiosks for the acceptance of checks at the point of purchase, instead of horseshoe bend-style check processor? The City is interested in reviewing any and all alternatives for check processing equipment at the point of purchase. However, the City is not interested in removing electronic check processing from its cash custodians at the point of purchase. 54. Who is the current incumbent for check processing? The City’s current incumbent for Check Processing is Elavon. 55. Are all check types authorized through your current vendor? Only personal and commercial checks are processed through Elavon. All others are manually deposited to Wells Fargo. 56. Do you capture and transmit other data other than MICR, such as ID/driver’s license or telephone number? The City captures an image but does not transmit driver’s license or telephone information to Elavon. 57. Do you currently accept checks through your website? The City currently does accept checks through its website. The City is willing to review options for this service. 58. Please provide an outline of what reports you currently use so we can provide recommendations. The City requests that prospective vendors submit samples of their standard reports to determine if they will meet the City’s needs. 59. How do you currently collect on returned/bad checks today? The City utilizes a third-party collection agency for returned/bad checks. 60. Is it your policy to require: a. Checks be imprinted with a name (non-starter checks) No, the City does accept temporary checks. b. Address to be included on the check, either imprinted or written Yes. c. Phone number, either imprinted or written Yes. d. Driver License number recorded on check Yes. 61. Are checks returned to a consolidated return account or to the banks at which they are deposited? Checks are returned to the accounts at which they were deposited. 62. Regarding Part 2, requirement 4: a. Please elaborate on the requirement to “fully integrate,” what services are performed via the Paymentus API and what processors are the API certified to interface with. North Star, A/R system for Utility Billing and Elavon, card processor. b. Are there any third-party gateways or systems the API requires? No. c. If so please provide company names and product names? N/A. d. What payment types and acceptance types are certified? Visa, MasterCard and Discover. e. Is this Internet based only or does it include over-the-counter? Internet and IVR. f. Is the API EMV certified, and if so to which processors? Paymentus is PCI and EMV certified. The City does not have a full list of processors to which Paymentus is certified other than Elavon. g. The City requests technology specifications for all proposed systems and services. We consider this information to be proprietary. Would you be willing to sign a non- disclosure agreement? Yes. 63. Regarding Part 2, requirement 5. a., please identify all existing hardware/software used in this service today, including company name, product name and versions including any service packs, number of each and length of time owned. The City desires to replace all check processing equipment in conjunction with this Request for Proposals. 64. Do you currently offer an ACH/E-Check option for your customers to process online? The City current does offer an ACH/E-Check option through its website. However, the City is willing to review options that may replace the current system. 65. As a provider of Remote Deposit Capture services to financial institutions and direct customers, we feel our product is unique in that we can integrate directly into the bank’s core processing platforms for speed of funding and presentment of data. That being said, we wanted to ensure that a company like ours that provides RDC outside of a financial institution would be considered for the RFP. The City is willing to review all options for RDC processing of checks. 66. Are all checks presented in a paper format and then converted or are you also looking for a verification/guaranty product for electronic of telephone checks? The City does not accept checks by telephone. 67. Our current ECS imagers are flat feed style RDM terminals and not horse shoe bend style, would you consider these as an alternative? The City desires to replace all check processing equipment in conjunction with this Request for Proposals and will consider all options. There will be a 3rd Addendum to follow. Staff is still working on answering eight (8) questions and preparing an attachment. NO OTHER CHANGES AT THIS TIME. Please acknowledge addendum on Attachment F of the main RFP document when submitting a proposal.