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AGENDA ITEM REVIEW FORM |
6.G.
Regular City Council Meeting
- Meeting Date:
- 04/24/2019
- Department Head:
- Monica Castro
- Submitted By:
- Jorge Perez, Billing & Collections Manager, Finance Department, Billing & Collections
Action Requested:
Motion
ITEM:
Discussion and possible action on any and all matters regarding the proposal of an agreement contract between Automated Merchant Systems and the City of San Luis for credit and debit card merchant processing services. (Jorge Perez, Billing & Collections Manager and Jonathan Dumadag, Senior IT Technician)
SUMMARY:
The City of San Luis is currently accepting credit and debit card payments for all of its services (Utility, Permits, Licenses, Building Safety, etc.). Unfortunately, payments are not being reflected in our billing software until the following business day. This occurs because our billing software and our online payment provider do not integrate/support each other. Due to this issue, staff must perform some manual entries to be able to post electronic payments into our billing software. Because of this, we are aware of the possibility of human error or delays.
Staff has been exploring the possibility of working with a new merchant services provider that will allow us to take and post payments in real time into our billing software (Tyler - New World). By doing this, electronic payments will post automatically without manual entries diminishing the possibility of human error. Our service would improve by increasing payment processing accuracy.
This new merchant services provider would also allow the City of San Luis to add other online services in the near future. Some of the new services/solutions to be provided to the public include new card reader devices. These new card readers are highly secured to protect customer’s personal information and credit/debit card integrity. They will also allow customers to use their credit card chip technology, ability to provide an electronic signature, and most importantly to make payments over the counter without having to hand out their credit/debit card to the customer service representative.
Merchant fees will vary depending on the credit card type (payment brand), i.e. Visa, MasterCard, Discover or American Express. The internet gateway third-party fee will be $0.10 per transaction.
Staff has been exploring the possibility of working with a new merchant services provider that will allow us to take and post payments in real time into our billing software (Tyler - New World). By doing this, electronic payments will post automatically without manual entries diminishing the possibility of human error. Our service would improve by increasing payment processing accuracy.
This new merchant services provider would also allow the City of San Luis to add other online services in the near future. Some of the new services/solutions to be provided to the public include new card reader devices. These new card readers are highly secured to protect customer’s personal information and credit/debit card integrity. They will also allow customers to use their credit card chip technology, ability to provide an electronic signature, and most importantly to make payments over the counter without having to hand out their credit/debit card to the customer service representative.
Merchant fees will vary depending on the credit card type (payment brand), i.e. Visa, MasterCard, Discover or American Express. The internet gateway third-party fee will be $0.10 per transaction.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO APPROVE THE AGREEMENTS NECESSARY TO IMPLEMENT AUTOMATIC POSTING TO UTILITY CUSTOMER ACCOUNTS OF PAYMENTS FROM ON-LINE, CREDIT AND DEBIT CARDS.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- YES
- CITY/STATE/FEDERAL FUNDS:
- CITY
- TOTAL:
- UNDETERMINED
- BUDGETED AMOUNT:
- $34,100.00
- AVAILABLE AMOUNT TO TRANSFER:
- N/A
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- BANK SERVICES / 100-750-80040 / $12,800.00
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
G/L ACCOUNT - BANK SERVICES
G/L ACCOUNT #100-750-80040
G/L ACCOUNT BALANCE $12,800.00
It is estimated that one year of service will cost $34,100. The budget of $12,800 will cover for services incurred during this fiscal year ending June 30th, 2019.
G/L ACCOUNT #100-750-80040
G/L ACCOUNT BALANCE $12,800.00
It is estimated that one year of service will cost $34,100. The budget of $12,800 will cover for services incurred during this fiscal year ending June 30th, 2019.