25A - AGMT - CREDIT CARD TRANSACTIONS

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Second Amended Agreement For Merchant Payment Services with TransFirst, LLC Increasing Annual Expenditure Cap And Adopting A Maximum Credit Card Transaction Limit June 21, 2016 Page 3 specialty bonus redemption points and cash back allowances, resulting in excess merchant payment processing costs to the City. Proposed Credit Card Transaction Limit —12 Month Analvsis (5/1/2015 — 4/30/2016) Proposed Credit Card Transaction Limit t $ of Credit Card Sales % of Credit Card Sales # of Credit Card Transactions % of Credit Card Transactions `Up to $5,000 $ 4,051,991 62.02% 15,590 99.24% Greater Than $5,000 $ 2,481.100 37.98% 120 0.76% Total 6 553 091 100.00% 15.710 100.00°0 t Proposed limit for single credit card payment transaction. Where transaction amount exceeds $5,000 limit, customer will be allowed to complete transaction using another form of tender; i.e., cash, check, cashier's check or money order. Proposed credit card transaction limit will apply only to walk -in credit card customers paying in City Facilities. To reduce these excess credit card processing costs, a $5,000 maximum credit card transaction limit is recommended for credit card payments processed at all City facilities. The maximum transaction limit would apply regardless of whether or not a credit card transaction represents a single or bundled payment; i.e., the payment of more than one assessment, bill, charge, fine, or permit in a single transaction. Bundled items totaling over $5,000 would be allowed to be unbundled and presented as individual transactions. The balance of transaction(s) that exceed the $5,000 limit could be paid with another form of tender; i.e., by cash, check, cashier's check or money order. Splitting a transaction that exceeds the maximum transaction limit into multiple credit card payments would be prohibited. Thus, an amount owed that exceeds the City's $5,000 maximum credit card transaction limit may not be split into two or more payment transactions using either a single credit card or using multiple credit cards, nor could the dollar amount be split into two or more transactions over multiple days by using one or more credit cards. Staff recommends that the proposed $5,000 maximum credit card limit applicable to all credit card transactions occurring at City facilities become effective October, 1, 2016. STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #7 Team Santa Ana, Objective #5F (explore opportunities to engage with outside agencies, both private and public, to share information and increase efficiencies) and Goal #4 City Financial Stability, Objective #1 (maintain a stable, efficient and transparent financial environment). 25A -3