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CC:PA - CONSENT: Approval of a Three-Year Agreement with First Data Merchant Services LLC for Credit Card Payment Processing.
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Meeting Date: June 26, 2023
Contact Person/Dept.: Elizabeth Shavelson/Finance Department
Phone Number: (310) 253-6018
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Attachments: Yes [] No [X]
Public Notification: (E-Mail) Meetings and Agendas - City Council (06/22/2023)
Department Approval: Lisa Soghor, Chief Financial Officer (06/20/2023)
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RECOMMENDATION
Staff recommends the City Council and Parking Authority Board approve a three-year agreement with First Data Merchant Services LLC (First Data) for credit card payment processing.
BACKGROUND/ DISCUSSION
The City accepts credit card payments for a wide array of fees and through various payment channels. This includes Transient Occupancy Tax, Cannabis Business Tax, permits, parking, refuse service, and other services and accounts receivable invoices. Credit card payments may be collected online, in-person and via other point-of-sale equipment such as parking meters.
In order to accept credit card payments from customers, the City must engage with a credit card payment processor. Payment processors primarily coordinate the movement of funds between the customer's bank and the City's bank, and provide other services including payment processing equipment and rules for payment dispute resolution.
The City currently utilizes First Data to process most of the City's electronic credit card payments for which First Data receives a transaction fee. The City first entered into an agreement with First Data in 2018 utilizing the State's Leveraged Procurement Agreement (LPA) with the company. The LPA with First Data was a result of a competitive solicitation process conducted by the State of California Department of General Services (DGS). Culver City Municipal Code Secti...
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