Title
Resolution to Approve an Agreement with First Data Merchant Services LLC ("Fiserv") for Merchant Processing Services ($279,000.00)
Memorandum
This resolution requests approval of an agreement with First Data Merchant Services LLC ("Fiserv") for merchant processing services integrated with Club Caddie golf course software ("Agreement"). The Agreement is for a three-year term, however there is a $0 early termination fee if the service does not work out. Agreement Documents include:
- Huron Hills Golf Course MPA.pdf
- Leslie Park Golf Course MPA.pdf
- City of Ann Arbor - MPA Amendment - 05.29.pdf
- Updated_Govt_Legal_CCNGov2210_SMB_CMM_PG (Locked) Final 10.8.19.pdf
The cost of the service is determined based on a portion of credit card transactions processed: 2.89% for Visa/Discover/Mastercard, 3.15% for Amex, plus $15 monthly fee. We anticipate these costs will be comparable to, if not lower than, those of the current vendor, Foreup Payments, operated by Finix, which charges 0.85% + $0.25 per transaction. The proposed spending cap is $279,000.00, which allows for estimated potential growth of up to 150%. This estimate will ensure that we do not reach the spending cap and provides room for growth as business process improvements bring increased sales and revenue to our golf courses, and as the new vendor brings increased stability, reliability, and functionality.
Based on FY 2025 and 2026, the golf courses are currently averaging roughly $62,000.00 per year in credit card processing fees to Foreup Payments. Inflating this by 150% provides an estimate of $93,000.00 per year estimate.
The Agreement will continue to provide the City with the ability to process credit cards online and in-person at the Huron Hills and Leslie Park Golf Courses. The vendor change is timed to be live before beginning to process transactions in fall 2026 to close out the current season and ensure a smooth start to the next season in March 2027. The Park Advisory Commission recom...
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