Title
Authorize the City Manager to finalize and execute a Merchant Services Processing Agreement with Paymentech, LLC, on behalf of JPMorgan Chase Bank, N.A. (Chase), for merchant services processing of utility billing and other electronic payments to the City as part of the Tyler Payments zero cost platform and to authorize Chase the exclusive use of the City’s official logo for the purpose of identifying the City as a Chase customer on its payment platform.
Body
The City is transitioning from Paymentus to Tyler Payments for online and in-person bill payment services. Tyler Payments provides full integration with the City’s existing Tyler Technologies systems, enabling real-time posting and automating several manual processes. The Tyler Payments software is covered under the City’s current agreement with Tyler Technologies; however, because Tyler Payments relies exclusively on Paymentech, LLC for back-end merchant services, a separate agreement with JPMorgan Chase and Paymentech is required. Paymentech will be responsible for capturing and securing customer payment data and processing payments. Credit card fees of 3.95 percent of the transaction amount will continue to be paid by customers, while the City will absorb electronic check fees of $1.95 per transaction to offer a no-cost payment option for customers online, by phone, or through autopay.
Financial Implications
For e-check transactions, the estimated cost of annual fees is $240,000.00 and will be funded in the Water and Sewer Operating Fund.
Recommended/Desired Action
Staff recommends the City Manager be authorized to finalize and execute a Merchant Services Processing Agreement with Paymentech, LLC.
Drafter
Tia Pettis
Head of Department
Ted Chinn