Long Beach, CA
File #: 11-0419    Version: 1 Name: FM - contract Link2Gov
Type: Contract Status: CCIS
File created: 4/14/2011 In control: City Council
On agenda: 5/3/2011 Final action: 5/3/2011
Title: Recommendation to authorize City Manager to execute all necessary documents with FIS to provide credit card processing services for City services for a period of three years with the option to renew for two additional one-year periods, at the discretion of the City Manager. (Citywide)
Sponsors: Financial Management
Indexes: Contracts
Attachments: 1. 050311-R-21sr.pdf
Related files: 10-1308, 32391_000, 16-0215
TITLE
Recommendation to authorize City Manager to execute all necessary documents with FIS to provide credit card processing services for City services for a period of three years with the option to renew for two additional one-year periods, at the discretion of the City Manager. (Citywide)

DISCUSSION
FIS, also known as Metavante Corporation and Link2Gov, to provide credit card processing services for City services that included a tiered convenience fee structure based on the amount of the transaction. Before executing the contract, it was discovered that FIS is unable to offer a tiered convenience fee structure because it is against card association rules. Instead, they are proposing a new flat fee by transaction type similar to the existing contract.

The vendor will continue to charge customers a convenience fee for credit card payments made by phone and the Internet and will pay associated bank fees and other expenses. The new flat fee structure is based on the type of bill the customer is paying. This minimizes the previous flat fee of $3.99 to $3.75 for utility bills regardless of the transaction amount. Of all phone and online payments, 60 percent are utility payments and 37 percent are parking citation payments. The convenience fee for garage sale permits and parking citations will remain at $1.59; the convenience fee for business licenses and ambulance transports will be $5.00 per transaction. These bill types attribute to 3 percent of all phone and online transactions.

In addition, the vendor will provide an alternative to credit card payments and offer the ability to pay utility bills with an electronic check (eCheck) via the Internet. The fee for an eCheck is much lower at $0.95 per transaction. Customers can already pay for many other types of transactions by eCheck.

Please note that if credit card payments are made in person, the convenience fee is not charged. Customers may also avoid the convenience fee by making payments at City ...

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