J.P. MORGAN CHASE BANK-2016 - Laserfiche WebLink

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3. Merchant Card Services. The City is hoping to potentially combine credit card merchant services (or some portion of merchant services) with banking services to streamline operations and cash flow as well as operational coordination but is not required to do so. The City currently accepts credit cards over the counter at four (4) locations utilizing its city -wide cashiering system, System Innovators iNovah. The City also accepts credit card payments via the City's website for water utility, business license tax, dog licensing, and limited types of building permits. The City also accepts credit cards at its parking meters. The City desires that the Bank chosen for banking services will have a close working relationship and working history with one or more of the City's merchant services providers if the bank itself does not offer the services under a subsidiary or affiliate. a. How is the applicable interchange fee determined for each transaction? What does the Bank recommend to minimize interchange fees? The interchange fees charged are set by the card brands and determined by several factors. Some of these factors include the type of organization accepting payments (i.e. utility, government services, higher education, coffee shop, etc.) and how the card is accepted (i.e. swiped in person or keyed in over the phone in a card not present environment). We work consistently to help the City qualify for the lowest interchange rates available. The following business practices and system features illustrate our continuous effort: • Our automated interchange management and monitoring process provides you the benefit of an optimal fee structure and minimizes the overall interchange clearing expense. • Our extensive edit process helps ensure that non - qualifying transactions are successively cleared at the optimal rates for which they can qualify. • Our system - generated exception reporting capability monitors, reports and reviews downgrades at a certain threshold or higher. • We provide ongoing communication and support to promote interchange best practices. b. When and how are the discount rate and other fees charged to the City? Can this fee be paid (in whole or part) through Account Analysis? We are pleased to offer the City the ability to offset Chase Commerce Solution credit card interchange and merchant processing fees against qualifying deposits. The City will benefit from a managed earnings credit rate of .31% towards the offsetting of these fees. Please note that no floor rate applies to this special purpose account. Page 90 JYMorgal,