Resolution approving the Merchant Services Agreements with Electronic Transaction Systems (ETS) Corporation, 20135 Lakeview Center Plaza, Ashburn, VA 20147, for Merchant Services for the Golf Course and Tennis Center. The current point of sale system (POS) at the golf course and tennis center facilities is Club Prophet Systems (Proshopkeeper). The system has been in use by the City since 2001 and has been an excellent record keeping tool for inventory and transactional data. To enhance credit card security and comply with the Europay, Mastercard and Visa (EMV) technical standard, or chip technology, Club Prophet needs to complete the installation of chip readers at the golf and tennis facilities. Club Prophet's exclusive merchant services credit card provider is ETS Corporation in conjunction with Merrick Bank Corporation, and new contracts are requested.
There are two components to credit card transactions: interchange fees and merchant service charges. Interchange fees are dictated by the Credit Card Association (i.e. Visa, Mastercard) and are non-negotiable. Merchant services charges are assessed by ETS and Merrick Bank. ETS charges $0.10 per transaction plus markup depending on credit card type ranging from 0.0015 to 0.0050 of the transaction amount (sales). The estimated annual merchant services fee for golf and tennis centers are $4,700 and $2,400 respectively. The agreements are on a month-to-month basis and renews by successive months unless terminated. The City has the ability to terminate upon 30 days notice and it is requested that the City Manager be authorized to exercise termination of the agreements. It is also requested that the Chief Financial Officer (CFO) be authorized to complete any additional forms, designate online access and review and adjust which merchant services are selected for the City in order to accommodate the rapid changes in technology and to ensure internal procedures are followed. Funds available in the Golf Course Fund ($4,700) and the Tennis Center Fund ($2,400).
Recommendation: Chief Financial Officer recommends adoption of the Resolution.