Addendum 1 - Credit Card Processing Services




ADDENDUM NO. 1RFP:           Credit Card Processing Service

DUE DATE:  3:00 P.M. Prevailing Time,

                     May 2, 2017




This addendum must be signed, attached to, and returned with your proposal to the City of Reading by the time and date indicated ABOVE:


Q1. Can the City please advise which of its payment channels are included in this procurement?

A1. Internet/Online Payments, Phone Payments, Walk In Payments

Q2. What are the vendor names, product names, and product versions/model numbers for each of the City’s payment solutions that will be part of this procurement?

A2. City of Reading Billing, including Property Maintenance Fees, Business License Fees, Business Privilege Tax, Zoning Fees, Building and Trades Fees. Presently using Igenico ICT 220 which was supplied by our previous processor at no cost to us. We may have to return these and would expect you to supply the equipment.

Q3. For each City payment channel that is part of this procurement, what is the City’s annual processing volumes?

For each location please provide total credit card sales value and total credit card transaction count for each card type.


A3. Annual volume: Total $68,602.33 Transactions: 1,394 Reports not maintained by card type.


Q4. Can the City please provide the last three (3) months of statements for each payment channel?


A4. Our payments come from WORLDPAY BNKCRD working as a middleman, between the credit card companies and ourselves. Our bank statements include all our other financial information not relating to the credit cards, therefore they cannot be provided. Included are copies of our daily reports, both over the counter (in house) and online (which includes phone payments through Value Payment Systems).


Q5. Does the City require new POS terminals?

If yes, how many new devices will be required and what are the terminal requirements (small counter space, built-in printer, PIN Pad for debit, etc.)

A5. Yes: small space. See Igenico ICT 220, as that worked well

Q6. Is the City interested in expanding its payments capability to include American Express, PIN Debit and Electronic Checks?

A6. Possibly


Q7. Is the City offering any additional award points or considerations for bidders that are Woman Owned and Minority Owned Business Enterprises?


A7. Yes

Q8. What type of communications lines are used at the City’s payments channels where terminals are in use?

A8. IP


Q9. Can the City please describe the current convenience fees model(s) that are Implemented (percentage based, fixed amount, how is the fee utilized by the City/vendor)?

A9. 2.5% $1.95 minimum fee Convenience fee to the payment service, we receive 100% of the original payment


Q10. Will a thumb drive work for the submission of the proposal or does a CD have to be submitted?


A10. A thumb drive and CD are permitted a paper copy of the proposal must be submitted also. Please refer to the RFP on page 3


Q11. MID is an abbreviation for Merchant ID and is basically your account number with your processor. Some clients of GovTeller have a MID for the Treasurer’s office and separate MID for the City Clerk’s office.


A11. I have never seen a merchant ID # for us, specifically. We do not use GovTeller and not sure if our present processor has one.


Q12. If the City of Reading processes $1,000,000 dollars a year how much of the $1M is processed in the office, how much is processed online and how much is processed over-the-phone?


A12. At the moment, we received a total of $68,600.00 in a year in credit card payments. We cannot distinguish what came through our processor by phone or online. Some of these payments were made directly to us, over the counter.


Q13. Follow up question. Does the City of Reading have to return the Igenico’s if the City

changes processors?


A13. I’m guessing we may have to return these, as we did not pay for them. They were provided by our processor at no cost.


Q14. How many ICT 220’s does the City have? A14. Four

Q15. Also, is the City swiping chip cards or dipping them into the 220’s? A15. Swiping.

Q16. IVR is short for Interactive Voice Response where a citizen follows the prompts of an automated system. Does your current process have a live operator take the payments for the City of Reading?


A16. All of this is done through our processor, Value Payment System. Q17. When you say contractors do you mean your current processor? A17. Yes

Q18. I will re-phrase just in case. Instead of a citizen entering their credit/debit card number they enter their checking/savings account and routing numbers?


A18. We do not do that here directly. I do not believe Value Payment System offers that for us.


Q19. New Question I noticed on your website you said convenience fee so does that mean the City of Reading receives both the 2.5% convenience fee (minimum $1.95) and the payment amount. Or is the City on a service fee model where the City only receives the payment amount while the service fee goes to your current processor?


A20. Correct. We receive our payment amount. The processor receives the convenience fee/cost to use the credit card.


Q21. Is Value Payment Systems the current payment processing provider for City of Reading?


A21. Yes


Q22. What types of payments are being accepted by City of Reading?


A22. Not sure what you mean specifically by type: Cash, check, credit card or Online, phone, over the counter, mail or Property Maintenance/Codes Bills, Zoning Bills, Building and Trades Bills, Business Licenses or Taxes

Q23. Does Reading already utilize EMV chip ready card readers?


A23. Our readers, supplied by the present provider, is the Ingenico ICT 220. We may have to return those. They look like they use the EMV chip.


Q24. What types of cards do you wish to accept? (Visa, MasterCard, Discover, American Express)


A24. Yes

Q25. How many terminals would need card readers? A25. 4

Q26. How many credit card transactions were accepted in 2016 by City of Reading? A26. 1,394

Q27. Could we have a breakdown of card transactions by type? (Credit vs Debit, Visa, MasterCard, Discover, American Express)


A27. That information is not split out.


Q28. What is the current convenience fee being charged? A28. Fee is added to the customer: 2.5% $1.95 minimum fee.

Q29. Which back-office systems will the vendor need to integrate with? Will there be an API available for integration?


A29. None. File will be exported and provided to the vendor nightly


Q30. Are the back-office vendors aware of the requirement to integrate with the payment processing system, if needed?


A30. N/A


Q31. Which channels does the City accept payments through today (web, POS, IVR, etc.)?


A31. Over the counter and through the present credit card processor, which accepts payment by a phone center, and website


Q32. Can the City provide current processing vendor for each of the payment channels (web, POS, IVR, etc.)?


A32. All from the credit card processor


Q33. Can the City provide transaction history by payment type (cash vs. credit vs. ACH)?


A33. See for public information


Q34. Can the City provide transaction volume by card type (Amex, Visa, MasterCard, etc.)? A34. Transactions not separated by type

Q35. Can the City provide transaction history by payment channel (web, POS, etc.)? A35. No. Not available

Q36. What is the expected or historical volume by payment type (e.g. tickets, parking, fees

& fines, taxes)?


A36. See for public information


Q37. Can the City provide their current pricing structure by channel? A37. See above

Q38. What channels does the City want to take payment’s through? (i.e. Web, mobile, payment IVR, live call center)?


A38. Web, Phone, Over the Counter


Q39. How may Merchant IDs does the City operate?


A39. The ID would be through the contractor, our Credit Card processor


Q40. Please describe the payment technology for each of the City’s merchant accounts. A40. See question 1

Q41. Please provide a listing of the hardware (terminal make & model) and the payment software (name and version) being used throughout the City.


A41. Presently using Igenico ICT 220, no payment software – Value Payment System, the present processor is handling this


Q42. Does the City utilize a payment gateway? If yes, please advise with gateway name(s) and how they are used?


A42. N/A


Q43. Does the City need a payment gateway (or software) that integrates to a front-end billing system? If yes, please describe.


A43. N/A










Please provide the following volume metrics:

Annualized or monthly Visa and MasterCard ($) volume

Annualized or monthly Visa and MasterCard (#) count

Annualized or monthly Amex ($) volume

Annualized or monthly Amex (#) count

Annualized or monthly Discover ($) volume

Annualized or monthly Discover (#) count



Information not separated by type, see attachment for sample



If possible, please provide indicative month-end statements from your current merchant services provider?



Not possible



The City indicates that “Merchant Services must be able to function with our processor”. Please expound upon this requirement. Which provider is the City’s processor?



Value Payment Systems is our provider/processor



Does the City have any specialized reporting needs?



Indicated in RFP - daily



How does the City reconcile its merchant services payments?



Unsure of question - We reconcile daily



What is the City’s credit/debit card volume for Card-Not-Present (i.e. web) versus Card Present (i.e. face-2-face)?



See attachment for over the counter (face 2 face) vs online (web)



Firm Name (Type or Print)__________________________________________


Authorized Signature______________________________________________




Name (Type or Print)_______________________________________________