Agenda Item 10.2 - PSN Service Agreement

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10/10/2013 Transaction Fees We offer many different options when it comes to transaction fees. We are also required to follow some rules and regulations when it comes to having the customer pay transaction fees. You indicated that you wanted the option for the City to accept all fees. When accepting all transaction fees, PSN anticipates between 20-30% of your residents to pay online. This is consistent with a recent national study indicating that 40% of people who have Internet access choose to pay their bills online. We would also expect the online payments to be about equaily divided between credit cards and eChecks. This can vary significantly based largely on the demographics of your community. When passing on transaction fees to the resident, PSN anticipates between 5-10% of your residents to pay online. The City Accepts All Fees Option Payment Method I Check Online I Check by tlutomated Phone � Check by O Rerator Assisted Call I Credit Card Oniine` � Credit Card by Automated Phone" � Credit Card by Operator Assisted Call` � Bank Bill Pay (Optional Service) Transaction Fee Paid br You I �U.50 I NA � i�lA I �0.50 � NA � NA � NA Transaction Fee Pard by Customer NA NA NA NA NA NA NA '` If you pay the credit card fees for your customers, PSN is able to qualify your utility company for special rates as shown below. The fees are bilied directly to you by the merchant provider. PSN does not bill these fees. There are three fees charged by the merchant provider: Interchange, Discount Rate and Authorization Fee. The sum of all three will be the fee charged to you. 1. As a utility company, PSN can qualify you for the Utility Rate Program offered by VISA, MasterCard and Discover, if you agree to pay all transaction fees associated with the payment and you agree to allow payers to set up Auto-Pay (recurring payments). Utility interchange rates range from $0.45 to $1 50. Nlost transactions will settle at $0.75. (Some business cards do not qualify for the Utility Rate Program). 2. Discount ra4e (a term used by merchant providers) is an added. cost. It is a percent of the transaction. For example: $50 payment x 0.5°/o discount fee = 25¢ 3. Authorization fee is a$.10 flat fee per Yransaction. If a credit card fee is disputed, PSN charges a$15.00 handling fee. Your customers will be required to pay a$35 NSF Check fee.