Title
Resolution to Approve a Three-Year Agreement with First American Payment Systems, L.P. d/b/a Deluxe Corporation ("Deluxe") for Merchant Processing Services ($276,000.00)
Memorandum
Attached for your review and approval is a resolution which authorizes an agreement with First American Payment Systems, L.P. d/b/a Deluxe Corporation ("Deluxe") for merchant processing services integrated with Club Caddie golf course software ("Agreement"). The Agreement is for a three-year term.
The cost of the service is determined based on a portion of credit card transactions processed (0.77% + $0.21 per transaction), in addition to an estimated $30.00 per month in miscellaneous additional fees. We anticipate comparable costs to the current vendor, Foreup Payments, operated by Finix (0.85% + $0.25 per transaction) and are proposing a spending cap of $276,000.00, which includes an estimated potential 150% growth. 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.
Over the past three fiscal years (FY 2024, 2025, and projection for 2026 - see table, below), the golf courses have spent a combined average of $61,141.84 per year in credit card processing fees to Foreup Payments. Inflating this by 150% provides an estimate of $91,712.00 per year, rounded up to $92,000.00.
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 for the 2026 golf season in March 2026. The Park Advisory Commission unanimously recommended approving the Agreement at their December 16, 2025 meeting.
Cost Breakdown:
-FY2026: $46,000.00 (Jan thru June)
-FY2027: $92,000.00
-FY2028: $92,000.00
-FY2029: $46,000.00 ...
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