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HomeMy WebLinkAboutContract 43905UTOMATED .'.MERCHANT )YSTEMS AC Service Agreement =Ertt This Agreement is entered into between Automated Merchant Systems, Inc., (hereinafter called AMS) and City of Forth Worth (hereinafter called Merchant). Experts in Electronic Payments Merchant Sales Rep's Name: Mark MERCHANT INFORMATION (please print) Merchant's Legal Name City of Forth Worth Merchant's "Doing Business As" Name Forth Worth Water Department Street Address 1000 Throckmorton Street City, State Zip Fort Worth, TX, 76102 Phone Number 817-392-8192 Fax Number 817-392-1097 Contact Name John Riggs Contact Title: Water Billing/Accounting Supervisor Website Address: http://fortworthtexas.qov/H2Online/ FEE SCHEDULE • • Petrovich Phone: 407.331.5465 o{'rpCJ,lLL RECIaRLi coy sECiaETARY �T. IAIORii H9 TX John.riggs@forthworthtexas.gov Fed Tax ID # orSSN 75-6000528 Type of Business SIC Code Water Utility Service 4900 Average Check Amount $ 101.00 Total Monthly Check Sales $ 333,000.00 Application Type (WEB) Click2Gov SunGard Public Sector Installation Date (Month -Year) 11/2012 Comments N/A Website Administrator Name, Email and or Phone: David Holt, david.holtc fortworthtexas.gov , 817 392-2515 Enterprise Site License Set -Up Fee — One time fee for an Enterprise Site License for all WEB, ACH or PPD per MID Accounts $250.00 Type Web Service Requested: Select an option: WEB PPD ❑ ACH ❑ MID: Note — Additional MID's required for multiple service types Per Transaction Fee — The fee for each transaction into AMS's database per MID Account $0.40 Monthly Access Fee — The monthly fee for access into AMS's national network and reports per MID account $10.00 fir, • Hosted Website Set -Up Fee — The one time fee for all Web Hosted licenses per MID Account $250.00 Type Web Service Requested: Select an option: WEB HOSTED ❑ TEL ❑ MID: Note — Additional MID's required for multiple service types Per Transaction Fee — The fee for each transaction into AMS's database per MID Account $0.50 Monthly Access Fee — The monthly fee for access into AMS's national network and reports per MID account $10.00 Check Verification Only Set -Up Fee - One time fee to establish this service Select this service Yes Monthly Access Fee - The monthly fee for access into AMS's national network and reports per MID account Per Transaction Fee - The fee for each check transaction into AMS's database *TYW.a .ice-+.'r =4-I. J>.. '. %b - - 4.. a.3. . $150.00 $10.00 $0.35 Check Verification with Guarantee Set -Up Fee - One time fee to establish this service Select this service Yes L] No Monthly Access Fee - The monthly fee for access into AMS's national network and reports per MID account Guarantee Rate — The fee percentage based on transaction amount per check Per Transaction Fee - The fee for each check transaction into AMS's database $150.00 $10.00 1.20% $0.35 Miscellaneous Fees ACH Return per Item Fee — The fee for each ACH returned item: ACH Paper Return per Item Fee —Fee for each ACH paper returned item NSF Re -deposit Service — Merchant request all ACH returns, due to NSF, be automatically re -deposited once. Re -Deposit per Item Fee — Fee to automatically re -deposit each ACH item returned due to NSF reason $5.00 $7.50 Yes ❑ No $2.50 AUTHORIZATION FOR PRE -ARRANGED PAYMENT (ACH): Please attach "voided check" Merchant's Legal Name ( i �,,� : 7—/ /v)ot//1 (Must match name on voided check) Merchant ID# [ grOe1 ] Assigned by AMS Merchant hereby authorizes AMS, Inc. or its designated agent to initiate ACH debit and / or deposit entries for the one-time, monthly per transaction, chargeback and adjustment entries, and percentage fees described above, as well as all supplies and equipment related fees plus applicable tax, to be automatically deducted from the Merchant's checking account indicated below at the depository named below (hereinafter called DEPOSITORY) Depository Bank Lr- PO/VC-0 CPICO Branch City / M r/ /. Transit / ABA Number j (1/7 f je,aTcf / State Zip Account # This authority is to remain in full force and effect until AI S and DEPOSITORY have received written notification from Merchant of its termination in such time and in such manner as to afford AMS and DEPOSITORY an opportunity to act on it. If Merchant refuses or fails to honor a valid ACH transaction initiated by AMS, AMS shall have the right to charge Merchant with AMS's usual administrative fee and Merchant agrees to pay such fee upon demand by AMS. Merchant has the right to stop payment of a debit entry and to have an erroneous debit credited to its account in accordance with the NACHA Rules. Print Name f(LPA/1 -/V-4 Authorized Signature 4 4 - RI&/t»,ii `` "Title: Wit CJf' .G/ C��,�/r. v Date %% jVA- Page 1 of 6 ACH Service Agreement ® Terms & Conditions SERVICES: AMS agrees to provide the services selected by Merchant on page 1 of the ACH Service Agreement. All such services shall be provided by AMS in accordance with laws applicable to the services and subject to the terms and conditions of this Agreement. AUTHORIZATION REQUIREMENTS FOR ACH ITEMS: Merchants originating entries being submitted into the ACH Network for electronic settlement, must follow and adhere to the terms and conditions of this Agreement. Merchant agrees to comply with all NACHA Operating Rules (the "Rules). Merchant shall strictly comply with all guidelines and rules established by AMS regarding the quality of data submitted to AMS, input schedules and deadlines and all other matters pertinent to the processing and delivery of ACH entry data. Checks that may not be converted into ACH entries: • Corporate or Business checks (except for WEB) • Third -party checks, • Credit card checks (equity line / line of credit checks), • Obligations of a financial institution (e.g. cashier's checks, money orders, etc), • Checks drawn on the Treasury of the United States A Federal Reserve Bank, or a Federal Home Loan Bank, • Checks drawn on a state or local government, (except for WEB) or • Checks payable in a medium other that United States currency P REAUTHORIZED PAYMENT AND DEPOSIT SALES PROCEDURES P PD ENTRY: A PPD entry is a consumer initiated ACH debit entry to a Consumer DDA Account initiated by the consumer to a Business, for goods o r services provided by said merchant. AUTHORIZATION REQUIREMENTS FOR PPD ITEMS Merchants originating PPD entries being submitted into the ACH Network for electronic settlement must obtain the consumer's written authorization prior to initiating a debit entry under this application. The language for the PPD authorization must conform to the requirements of the NACHA Operating Rules, which require that the authonzation (1) be in a writing (2) be readily identifiable as an ACH debit authorization, (3) clearly and conspicuously state its terms, and (4) must (for recurring payments only) provide the Consumer with a method to revoke their authorization by n otifying the Merchant in the manner prescribed. (5) Merchant must provide each Customer with an electronic or hard copy of the Customer's authorization for all Debit Entries to be initiated to a Consumer Account. WEB SALES PROCEDURES: WEB ENTRY: A WEB entry is defined as an ACH debit entry to a Consumer Account (personal DDA number) initiated by the consumer to a Merchant -Business, via the Internet, for goods or services provided by said merchant. AUTHORIZATION REQUIREMENTS FOR WEB ITEMS Merchants originating WEB entries being submitted into the ACH Network for electronic settlement must obtain the consumer's authorization prior to initiating a debit entry under this application. Although the NACHA Operating Rules do not prescribe specific authorization language for the WEB application, the authorization must conform to the requirements of the NACHA Operating Rules, which require that the authorization (1) be in a writing that is signed or similarly authenticated by the Consumer, (2) be readily identifiable as an ACH debit authorization, (3) clearly and conspicuously state its terms, and (4) must (for recurring payments only) provide the Consumer with a method to revoke their authorization by notifying the Merchant in the manner prescribed. Merchant agrees and acknowledges that it will assist in resolving all consumer disputes in a timely manner, and will allow AMS to refer inquiring Financial Institutions directly to Merchant, or to Merchant's supporting vendors, for information regarding the nature and conditions of each transaction initiated to the customer's account. The Merchant should prompt the consumer to print the authorization and retain a copy. The Merchant must be able to provide the consumer with a hard copy of the authorization if requested to do so. Only the consumer may authorize the WEB transaction, and not a Third -Party Service Provider on behalf of the consumer The NACHA Operating Rules include the use of a digital signature or code to similarly authenticate a written authorization. This does not exclude other methods of similarly authenticating an authorization, such as shared secret passwords, biometrics etc. TEL SALES PROCEDURES: TEL ENTRY: A TEL entry is defined as a Single -Entry ACH debit entry to a Consumer Account (personal DDA number) initiated in response to a consumer s oral authorization to a Merchant -Business, captured via the telephone, for goods or services provided by said merchant. AUTHORIZATION REQUIREMENTS FOR TEL ITEMS Merchants originating TEL entries being submitted into the ACH Network for electronic settlement must adhere to the following requirement. A TEL entry may be transmitted only in circumstances in which (1) there is an existing relationship between the Merchant and the consumer, or (2) there is not an existing relationship between the Merchant and the consumer but the consumer has initiated the telephone call to the Merchant. A TEL entry may not be used when the Merchant has initiated the telephone call. The Merchant and the consumer are considered to have an existing relationship when either (1) there is a written agreement in place between the Merchant and the consumer for the provision of goods or Page 2 of 6 AN Service Agreement Terms & Conditions cont. existing relationship when either (1) there is a written agreement in place between the Merchant and the consumer for the provision of goods or services, or (2) the consumer has purchased goods or services from the Merchant within the past two years. For purposes of these "Rules', an affiliate of a Merchant that has an existing relationship is not deemed to have an existing relationship with respect to TEL items TEL TRANSACTION OBLIGATIONS: Merchant agrees to comply with all NACHA Operating Rules (the 'Rules"). The Rules are incorporated herein by reference. Merchant agrees to obtain the consumer s explicit authorization prior to initiating a debit entry to a consumer's account. Merchant need not provide the consumer with a written authorization for the consumer to sign or similarly authenticate. Instead, the Merchant may obtain the consumer's authorization for a TEL entry orally via the telephone. Merchant is obligated either to tape record the consumer s oral authorization or to provide in advance of the Settlement Date of the entry, written notice to the consumer that confirms the oral authorization. The consumer must be provided, and must acknowledge, the following terms of the transaction: • The date on or after which the consumer's account will be debited: • The amount of the debit entry to the consumer's account: • The consumer's name; • A telephone number that is available to the consumer and answered during normal business hours for customer inquiries; • The date of the consumer's oral authorization; and • A statement by the consumer that the authorization obtained from the consumer will be used to originate an ACH debit entry to the consumer's account. For an oral authorization obtained over the telephone to be in accordance with the requirements of the NACHA Rules, (1) the Merchant must state clearly during the telephone conversation that the consumer is authorizing an ACH debit entry to his account, (2) the Merchant must express the terms of the authorization in a clear manner, and (3) the consumer must unambiguously express consent. Silence is not express consent. The Merchant must retain either the original or a duplicate tape recording of the consumer's oral authorization OR a copy of the written notice confirming the consumer's oral authorization for two (2) years from the date of the authorization Merchant must provide a copy of the consumer's authorization when requested. Such request could be by the Merchant's bank, AMS, NACHA, the consumer's bank, or any proper Government Agency. A Merchant using a voice response unit (VRU) to capture a consumer's authorization for a TEL entry must understand that key -entry responses by the consumer to input data and to respond to questions does not qualify as an oral authorization. A VRU may be used by the consumer to key enter data and to respond to questions provided that the actual authorization by the consumer is provided orally. A Merchant that chooses the option to provide the consumer with written notice confirming the consumer s oral authorization must disclose to the consumer during the telephone call the method by which such notice will be provided The written notice must include, at a minimum, the six pieces of information required to be disclosed during the telephone call, as described above. Merchant understands that the term 'provide' is intended to mean that the merchant has utilized a medium such as US mail fax, or other mail delivery, to send the written notice to the consumer. Disclosure in electronic form, including e-mail, can be used however; state and or federal laws may require consumer consent before using electronic notices/disclosures. The term "provide" does not imply receipt of such notice by the consumer. Merchant also understands that when written notice is used to confirm the authorization, the consumer must be afforded the right to contact the Merchant using the telephone number provided to correct any erroneous information contained within the notice. In order to minimize the risk of entry errors, Merchant agrees to use a commercially reasonable system, technology, practice, or procedure to verify, (A) that the routing numbers are valid, and (B) the identity of the consumer. Merchant agrees and acknowledges that it will assist in resolving all consumer disputes in a timely manner, and will allow AMS to refer inquiring Financial Institutions directly to Merchant, or to Merchant's supporting vendors, for information regarding the nature and conditions of each transaction initiated to the customer's account. POP SALES PROCEDURES CHECK VERIFICATION: Each check tendered at the point of sale will be processed through AMS's national positive and negative database to help Merchant decide whether to accept or decline the customer's check. Merchant agrees to use the check verification service solely for legitimate Merchant business purposes at Merchant s business location(s) in connection with the presentment of customers' checks for the purchase of goods or services from Merchant. Merchant shall not permit the check verification service to be used for any other purpose or by any person or entity other than Merchant, and Merchant agrees to instruct its employees accordingly. POINT OF SALES PROCEDURES: Merchant agrees that in order for check data provided at the point of sale to be accurately compared with the AMS database, Merchant must use a properly programmed and functioning check reader. As a result of information obtained through AMS, Merchant shall immediately advise the customer whose check was declined, via an AMS referral card and/or copy of the printed receipt Customer inquiries concerning the reasons for decline and requests for assistance to correct the problem shall be directed to the reporting agency that communicated the fact that the customer's check should be declined (i.e., not AMS). This agency name and phone number will be provided on the receipt and/or terminal display screen. CHECK CONVERSION OBLIGATIONS: Merchant agrees to comply with all NACHA Operating Rules (the 'Rules"). The Rules are incorporated herein by reference. Merchant agrees to obtain a written authorization from each customer prior to transmitting a point -of -purchase entry to the customer's account. The authorization shall conform to the requirements of the Rules which require that the authorization (1) be in writing and signed or similarly authenticated by the customer using a digital signature or other code, (2) be readily identifiable as an EFT debit authorization, and (3) clearly and conspicuously state its terms. Merchant shall provide the customer with a copy of the authorization at the time the authorization is obtained and shall retain a copy of such authorization for a period of two (2) years following the date the authorization is signed. Merchant shall provide to the customer a copy of his authorization, along with a receipt containing specific information relating to the transaction. Merchant shall n ot accept a check from a customer as a source document for point -of -purchase entries unless the check is drawn on a consumer account, has a pre-printed serial number, has not been previously voided, and has not been previously negotiated by the customer. Merchant shall provide each customer with a transaction receipt at the time and place of purchase. The receipt shall contain at a minimum, the following information regarding each debit entry to be initiated to the customer's account: (a) Merchant's name (b) Merchant's telephone number; (c) the date of the transaction;(d) the amount of the transaction; (e) the check serial number captured from the source document; and (f) the Merchant number or other unique n umber that identifies the location of the transaction. If required by AMS, Merchant agrees to also include the following additional information on the receipt provided to the customer: (a) Merchant's address; (b) Merchant s identification number; (c) the customer s financial institution routing Page 3 of 6 ACH Service Agreement - Terms a Conditions cont. the receipt provided to the customer: (a) Merchant's address; (b) Merchant's identification number; (c) the customer's financial institution routing n umber; (d) the account number of the customer; (e) the identification number of the customer; and (f) a transaction reference number. Merchant u nderstands and agrees that the Rules prohibit the placement of a customer's complete account number and identification number on the receipt. Merchant shall void the check presented to Merchant by the customer in connection with each point -of -purchase transaction (i.e. the check that has been used as the source document for information relating to the transaction), and return it to the customer. Merchant agrees to return the check to the customer voided after use by the Merchant to obtain the customer's routing number, account number and check serial number for the initiation of the point -of -purchase entry. Merchant agrees to verify that the check presented by the customer has not been provided by the customer for use in any prior point -of -purchase entry. CHECK GUARANTEE SERVICE: AMS agrees to indemnify merchant from losses on bad check returns for checks that were accepted through our electronic check conversion services. Checks to be covered must meet criteria for electronic check acceptance, which means that the check has to be drawn on the customer at the point of sale and follow the below stated guidelines: • The check writer's valid driver s license/photo ID must be presented to verify the signature on the check & receipt • The check writer's valid driver s license/photo ID must be keyed into the terminal to compare against the negative database and receive an authorization approval • The printed receipt must be signed by the customer to authorize the electronic collection of the check • Checks excluded from the check guarantee program include, but are not limited to: • Third Party Checks and/or Business Checks • Blank Checks or Checks made out to ' Cash' ; (i.e. all checks must be made out to your business name as the Payee) • Checks without preprinted customer name and address • Checks without a current phone number of the check writer • Checks where the signature on the check does not match the preprinted name on the face of the check • Repeated attempts to process a check after a "Decline" message is given • All 'Warning — Manager Needed" messages which are overridden by the merchant. • Checks returned due to merchant fraud or lack of due care when... • Check processed electronically AND paper check deposited • Check processed electronically without the signed authorization of the customer: i.e. signed Receipt • Customer Disputes Reg E claim and/or any Stop Payment of item Merchant agrees that once enrolled he will receive NO DIRECT PAYMENTS from the check water on outstanding items and shall direct the check writer to us. Merchant will allow its returned items to be sent directly to AMS for processing. Merchant agrees all approved checks assigned under this agreement shall become the property of AMS. ADDITIONAL ITEMS NO LIABILITY FOR LOSSES: With the exception of Check Guarantee Service referenced above, merchant enrolled in AMS's Program(s) as indicated on the front section of this form, agrees and understands that AMS is not guaranteeing or insuring any consumer transactions. AMS has n o liability for any losses the Merchant may incur as the result of a consumer transaction that has been authorized by the Merchant using AMS's service AMS is not guaranteeing or insuring against bad -check losses. AMS will not be liable to Merchant, customers or any third party for any failure, error or delay in performance. In no event will AMS be liable for incidental, special or consequential damages incurred by Merchant or any other person or entity CONSUMER INQUIRY ASSISTANCE: Merchant agrees to provide to AMS, or other requesting Financial Institutions or Government Agencies, all supporting documents or materials (as required by merchant to keep as prior reference within this Agreement) being held in connection to consumer transactions generated under the terms of this agreement. Merchant further agrees to provide said records within 5 days of being n otified by AMS or other Institution. Merchant will supply records in the manner that will provide the fastest and clearest copy. This could be but is not limited to the following: Fax, Email, or some other expedited postal -package delivery (i.e. USPS, FedEx or UPS); all expenses related to providing these items will be the merchant's responsibility. Merchant agrees to take additional reasonable efforts to provide information supporting the transactions involving their consumer which the accuracy or question of its validity is being questioned. ASSISTANCE IN REMEDYING ERRORS OR CONSUMER ISSUES: In the event an error or apparent error exists in the AMS data which has been supplied to Merchant, Merchant agrees to fully cooperate with AMS and its third -party service providers in an effort to clarify and if necessary rectify the accuracy of the data in question. TERMINATION: This Agreement will be effective as of the date it is accepted by Merchant and AMS and will continue in effect for a term of one (1) year following such date (the "Initial Term"). Either party reserves the right to terminate this agreement with 30 days written notice to the other party. Additionally, AMS may immediately discontinue providing check processing to Merchant in the event Merchant fails to comply with or otherwise breaches the terms of this Agreement. In the event Merchant has transaction returns that exceed 8% of their monthly volume, AMS may, at its option, terminate this Agreement. In the event Merchant stops conducting business in the normal course, becomes insolvent, or becomes subject to proceedings under the Federal Bankruptcy Act, AMS may, at its option, immediately terminate this Agreement. In the event Merchant provides written notice to cancel, or verbal notice to cancel AMS services and Merchant continues to utilize AMS services, Merchant will continue to be charged for transaction activity. INDEMNIFICATION: To the extent permitted by law, Merchant shall indemnify and hold harmless AMS, their agents and employees against and from all actions, suits, losses, liabilities, damages costs and expenses, including court costs and attorneys' fees, relating to or arising from any and all claims asserted against AMS due to negligence or misuse by Merchant in its use of AMS services. PRICING: Merchant agrees to pay AMS, according to the "Fee Schedule' set forth on the front side hereof and pursuant to AMS's usual fee schedule for any other services AMS s fees for services performed under this Agreement. AMS reserves the right to change the service or the service fees with 30 days written notice to Merchant. Further, to the extent permitted by law, merchant agrees to pay AMS for any fees, fines, or penalties that result, or couldresult, from violations or sanctions assessed or levied by the NACHA Organization due to merchant not following these stated rules or from any improper compliance of these rules by merchant. Page 4 of 6 Ae.Hservicelgreement: Terrnn.Coodillonscont. REPRESENTATIONS: Merchant represents and warrants with respect to all entries we process for you that: (a) EACH Merchant has authorized the debiting and/or crediting of his, her, or its account and also for the collection of any returned check or transaction check fees, (b) EACH entry is for an amount agreed to by the Merchant, (c) EACH entry is in accordance with the rules and properly authorized in all other respects. To the extent permitted by law, Merchant agrees to defend, indemnify, and hold Processor and all its agents harmless for any losses, liabilities, legal action costs or expenses we incur as a result of any breach of these representations and warranties either intentionally or unintentionally by Merchant. Merchant shall cease initiating Entries immediately upon receiving actual or constructive notice of the termination or revocation by the Receiver of authority. Merchant may use Processors system to block accounts from being processed, but processor bares not responsibility in the event that processors system fails to filter blocked transactions on behalf of Merchant. ENTIRE AGREEMENT: This Agreement makes up the entire agreement between the parties concerning Processors ACH services. If any provision of this Agreement is deemed unenforceable, the remaining provisions shall remain enforceable. There are no third party beneficiaries of this Agreement. If there is more than one Merchant named on the Service Agreement each and every so named Merchant is bound by the signing thereof. Each party acknowledges that they have read and understands the Terms and Conditions of this Agreement, including the provisions contained on all pages hereof, and the information provided is accurate ontodo Costa Assistant City ilianageff Merchant Print Name dee Authorized Signature reentiaine4 6141- AMS Print Name Authorized Signatu ` rams) P-PPROVI1/41--±D AS T NO LEGALruy: SSThNT'JCSTY AT CQRNEY C I wyki-i- OftZ Fey ©IJ000A000A oo 0 A 0 yA %on c, woo° *zi /./PercaS 04-7 rtiatt\--mer-alc\a Title: Date Title: Date /4,1 /X. Page 5of6