Item 15 - Debit and Credit Card Merchant Payment Processing Services

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Renewal Agreement with TSYS, DBA Global Payments December 6, 2022 Page 2 maintain the reduced rate for the term and optional extensions of their prior agreement and for the full term of the proposed renewal agreement. Year -after -year, Treasury has been able to track the rapid growth and popularity of debit and credit card payments made by Santa Ana residents and businesses. In Fiscal Year 2021-22, there were approximately a total of 55,000 debit and credit card payment transactions at City facilities, which totaled $5,600,000 in collections for City taxes, permits, fees, fines, and other charges due for City services. Per City Council approval on June 21, 2016, the City currently does not pass on merchant processing fees to Santa Ana residents or businesses making debit/credit card payments for day-to-day City services as this widely encourages Santa Ana residents and businesses to submit timely, electronic payments. The City incurs a variety of charges covering the cost of these debit/credit card transactions. The amount of these charges vary from card type to card type, based on criteria established by the card issuer. In FY Year 2021-22, the City incurred a total of approximately $110,000 in expenditures with TSYS for debit/credit merchant processing fees. To improve the security of debit and credit card payment transactions for Santa Ana residents, and to minimize the risk of a credit card information data breach, the City Council will be presented (at a future City Council Meeting) with a recommendation to approve a citywide upgrade of iNovah cashiering software and payment terminal hardware to EMV Chip & PIN contactless payment terminals and Payment Card Industry Data Security Standard ("PCI DSS") compliance to protect credit card payment data. Because of TSYS' unique institutional knowledge of the City's payment processing systems, they have created a System Integration Design, that includes an integration solution and support for the City's new EMV Chip & Pin contactless payment terminals and software. Additionally, as part of the proposed upgrade to the City's cashiering software and payment terminal hardware, American Express payment transactions will be introduced and presented (in addition to MasterCard and Visa) by TSYS on behalf of the City for all walk-in credit card payments made at City facilities. TSYS' merchant payment processing services are fully integrated into all City payment systems, including but not limited to enQuesta, the City's water utility billing system. Beginning in Fiscal Year 2019-20, the Finance & Management Services Agency ("FMSA"), Public Works Agency ("PWA"), and Information Technology Department ("IT") undertook development of a program for the implementation of Advanced Metering Infrastructure ("AMI") to provide modern smart metering services to the City's water utility operation and for Municipal Utility Services ("MUS") customers (to which TSYS' services are tied). In March 2020, Treasury began an upgrade to the City's existing water, sewer, sanitation, and refuse customer information service/utility billing system, enQuesta, to ensure the City is keeping up with best practices as they relate to utility customer service and billing technology, and to ensure compatibility with the City's AMI program systems.