5.13.
CC Regular Session
- Meeting Date:
- 03/22/2011
- By:
- Diana Lund, Finance
Title:
Authorize Credit Card Contract with RevTrak
Background:
The Finance Committee met on February 22, 2011 and were presented with the costs associated with the city accepting credit cards for payments (summary is attached). The data presented was based on last year's revenue collections in the city and a "what if" costs if a certain percentage of customers would have paid via credit card. The associated fees would amount to approximately $13,500 annually. This amount could be higher or lower based on actual usage.
Three credit card firms were presented - those firms that offered the capability of being able to interface with the City's utility billing system (OPUS 21).
The finance committee made the recommendation to choose RevTrak who offers utility billing interfacing and web store capabilities. The finance committee also made the recommendation that the associated credit card fees would be absorbed by the city as part of the costs of doing business.
RevTrak and Opus 21 will be present at the workssession on March 22, to demonstrate how the credit card - utility billing and other payment processings will work. The city is looking at offering the credit card option for all city payments - utility billing, building permits, special assessments, fines, etc.
RevTrak only offers a monthly contract with a 1.99% "swiped" rate and $.35 per item. Staff had concerns regarding the possibility of an interest rate changing monthly. RevTrak, who currently contracts with 52 cities, (listing attached) gave the example of Shoreview. They begin credit card services with Shoreview in 2002 with a 1.99% "swiped" rate and $.33 per item. As of today, they are still charging the 1.99% "swiped" rate and $.35 per transaction.
RevTrak would need two weeks for implementation with the city and Opus 21 four weeks.
Recommendation:
Staff recommends award of contract (based on City Attorney's review) to RevTrak for city credit card services.
Council Action:
Motion to award contract (based on City Attorney's review) to RevTrak for city credit card services.
Attachments
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Kurt Ulrich | Kurt Ulrich | 03/16/2011 11:23 AM |
- Form Started By:
- Diana Lund
- Started On:
- 03/14/2011 07:20 AM
- Final Approval Date:
- 03/16/2011