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.