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9.e Electronic Payments Staff Report Staff Report Date of Meeting: November 19, 2019 To: City Council From: Colleen Firkus, Treasurer Re: Electronic Payments Background: Staff receives daily requests to allow customers to pay with a credit card . Council has also expressed interest in establishing a way for residents to sign up for classes and recreation programs using a credit card to boost participation. Transaction costs can be passed on to the user or paid by the City. Proposal Details: Two companies were looked at to provide an electronic payment service. The first was Government Payment Services, Inc. (GovPayNet.com). The fee charged per transaction would be 2.65% with a $1.00 minimum for Utility/Sewer transactions. All other transactions such as Building Permits, Zoning Applications, Recreation Programs, would be charge 4%. The second company, Payment Service Network, Inc. (PSN) is proposing a one-time setup fee of $149, plus an $89 Security Compliance Fee. Customer transaction fees are shown below. Payment Channel Check/Savings Credit/Debit Card Online • Mobile • Virtual $1.00 2.75% (+50¢ if under $100)* Both companies would allow payments at the City office, online or by phone. However, PSN has a relationship with Banyon Data Systems, our vendor for Fund Accounting, Payroll and Utility Billing. PSN will provide a data file that can be uploaded directly into our Fund Accounting and Utility Billing systems that matches our coding. This would eliminate data entry for each transaction and completion of lengthy handwritten receipts and deposit slips for these transactions. It would also eliminate the need to purchase Point of Sale Software ($4,090) from Banyon to move away from hand written receipt books to direct entry of receipts into our accounting system. Payments at the City office would require the purchase of a swipe machine for $250 with a $4 per month lifetime warranty service fee that would keep the software updated and replacement/upgraded at no charge. Recommendation: I recommend going with PSN due to their link with Banyon. They also offer a wide range of other services, such as e-Billing, for seamless expansion as the need arises. Their call center is located in Madison, WI and available 365 days per year offering customers English and Spanish. There are many cities who use PSN now and the few I have talked to are pleased with their experience. Once a contract for service has been received, it would be 4-6 weeks to go live.