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AI- 3561   12. B. 1.    
BOC Regular
Meeting Date: 05/20/2021  
Credit Card Processing Recommendation
Submitted For: Kelli Scott
FROM: Brad Wilcox, Assistant County Administrator , Administration
Department: Administration  

Resolved the Calhoun County Board of Commissioners does hereby approve the award of a five-year contract with GovPros to provide payment processing for County departments that accept credit and debit cards for payment for fees and services.  
County Administration recommends GovPros for the award of a five-year contract to provide point-of-sale credit card processing for County Departments which will result in an estimated $30,000 in annual revenue to the County Departments accepting credit/debit card payments
Several County Departments including; the Treasurer Office, the Courts, the Sheriff’s Office, the Clerk’s Office and the Finance Department have spent the last two-years evaluating different payment platforms in an attempt to unify payments under a single vendor providing point-of-sales credit card processing. These payment services include online bill payment, debit card, credit cards, and eCheck processing.

The Purchasing Department issued a Request for Information – RFI#112-20 to solicit additional information from payment processing vendors. Twelve firms responded to the RFI providing information about their payment platforms. The initial review by the Purchasing Department resulted in a short list of four firms that were determined to be the most qualified to receive the contract award.

The short list of vendors were evaluated using a matrix with criteria that included; firm qualifications, revenue sharing, convenience fees, fraud protection, call center and payment types. Following the scoring and vendor demos, GovPros, (Detroit, MI) was determined by consensus to be the most responsible payment processing vendor. GovPros provides payment services to a number of Michigan Counties (Delta, Clare, Midland, Emmet, Marquette) in addition to being the preferred provider for the Michigan Association of County Treasurers. GovPros offered the highest revenue sharing rate to the County while charging convenience fees to the public estimated to be the lowest compared to other vendors.

No credit card information is ever stored on the County network and the GovPros platform is PCI DSS security certified. GovPros has offered to replace ten physical card processing readers at no cost, a savings of $2500, and no additional costs for implementation will be charged to the County. GovPros also offers indoor/outdoor kiosks for managing unattended card payments. GovPros platforms accepts Visa, Mastercard, Discover, American Express, Debit Cards and ACH payment types. GovPros offers a live call center staffed 24/7 to assist persons with technical difficulties or lack of Internet access. GovPros success rate for assisting customers and accepting payment is 100%.

GovPros manages the customer service aspect of all chargebacks. They will be notified when a chargeback has been filed against the County. GovPros will then provide all necessary support items to the Issuing Bank for review. At this point in the process, the funds from the original transaction have already been deposited into the County’s bank account but the funds will be withdrawn from the County’s bank account until dispute resolution is complete. If the chargeback is dismissed, funds are promptly returned. If the chargeback is decided in favor of the cardholder, the funds will remain debited from the County’s bank account, and the corresponding department will need to make adjustment to their receipting system. GovPros provides emails and visibility to the County throughout this process for all filed chargebacks. GovPros estimates that less than 1-2% of payments result in chargebacks and over 90% are resolved by GovPros in the County’s favor.

Installing our EMV S300 pin pads will greatly reduce chargeback exposure by running payments as a chip card. This eliminates what’s called “Fraud Present” dispute claims. Additionally, GovPros Platform is set up to utilize AVS (address verification system). Accurate AVS responses are considered “compelling evidence,” and this greatly eliminates what’s called “Fraud Absent” dispute claims.
County Administration recommends the award of a five-year contract with GovPros to provide processing for credit/debit card payments.  

Fiscal Impact
The are no upfront installation or implementation cost or on-going maintenance fees are required to support the GovPros system.

Revenues paid by GovPros to the using County Departments is estimated at $30,000 per year.
GovPros Information
Draft Contract

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