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HomeMy WebLinkAbout6.f. Agreement for Credit Card Paymentsf Ilk CITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION CITY-COUNCIL MEETING DATE: November 21, 2000 AGENDA ITEM: Agreement for Credit Card Payments AGENDA SECTION: Consent PREPARED BY: Jeff May, Finance Director AGEND y e. ATTACHMENTS: Copy of Agreement APPROVED BY: Attached for your consideration is the agreement that needs to be executed with the First State Bank of Rosemount that will allow us to accept credit card payments. As previously discussed, we are proposing to accept credit card payments for all Park & Rec programs that are registered for at the Community Center beginning January 1, 2001. It is our hope, that if all goes well, we will eventually extend this to other City services as well. With your approval this evening, we will have the mayor execute this agreement with the bank and staff will then follow up and make sure all arrangements are made prior to January 1 st so that we are ready to accept payments for Park & Rec programs at that time. RECOMMENDED ACTION: Motion to authorize execution of agreement with First State Bank of Rosemount that will allow the City of Rosemount to accept credit card payments beginning January 1, 2001. COUNCIL ACTION: MERCHANT AGREEMENT This Agreement is entered into by and between - ( "Merchant") and The First State Bank of osemount ( "Bank ") WHEREAS, as apart of the Bank's credit card program, Bank is authorized by ViSA. U.S.A. INC. ( "VISA ") and/or MASTERCARD INTERNATIONAL, INC. ( "MCI ") to use the respective service marks. technical information, communications networks and certain copyrighted material, of VISA and MCi. all of which shall hereafter be referred to as the "Card Plan "; and WHEREAS. Merchant desires to participate in the Card Plan and honor cards bearing the service marks of ViSA and/or MCi in connection with sales of merchandise or services by Merchant. NOW, THEREFORE, Merchant and Bank mutually agree to the following terms and conditions: I. As used in this Agreement, the term "Card" shall mean a credit or debit card bearing either the service marks of ViSA or the service marks of MCI including, but not limited to. Classic Cards, Business Cards, Debit Cards, Check Cards and Gold Cards. All references to "sales drafts" and "credit vouchers" in this Agreement shall be deemed to include transaction records transmitted electronically or manually on paper drafts. 2. Merchant will process, through the Bank, sales drafts and credit vouchers initiated only at the Merchant's business by use of a Card. Merchant warrants that all sales drafts tendered to the Bank will represent obligations of a cardholder in amounts set forth therein only for merchandise sold or services rendered and shall not involve any element of credit for any other purpose or business. Merchant represents that, as of the date any sales draft is tendered to Bank, Merchant has no knowledge or notice that would impair the validity of the sales draft or its collectability. 3. Merchantshall display at prominent locations, card emblems and other promotional materials/signageas may be provided by Bank. Merchant shall comply with all applicable MCI and VISA rules and regulations concerning the use of service marks and copyrights owned by MCI or ViSA, respectively. 4. Merchant agrees to (i) check each Card for validity and honor any valid Card properly tendered for use; (ii) prepare all sales and credit vouchers on forms provided or approved by Bank; (iii) complete all vouchers to include the name of the cardholder. authorized user (if different), account number, date, description of merchandise sold or services rendered, and the total price of the transaction with applicable tar included; (iv) imprint or electronically transmit card data in all face -to -face transactions; (v) obtain authorization on all transactions unless Bank establishes a floor limit or other dollar amount limitation; (vi) compare the signatureon the draft to that on the card for authenticity; (vii) process all electronically authorized sales drafts and credit vouchers for payment to Bank daily as a matter of routine, but not later than the end of the next banking business day unless otherwise prearranged with Bank; (viii) establish a reasonable policy for the return of merchandise which may limit the acceptance of return merchandise, provided that proper disclosure is made at the time of the original transaction in which goods or services were delivered to cardholder; (ix) clearly display its return merchandise policy at the point of transaction and where Merchant's return merchandise policy is one of the following: "No Refund," "Exchange Only," "Ali Sales Final," or "in -store Credit Only." this policy must be disclosed on all copies of the sales draft in letters 1/4 -inch high and in close proximity to the signature panel: (x) issue a credit voucher evidencing refunds; (xi) preserve copies of sales drafts and credit vouchers for a period of three years from the date of issuance: (xii) retain possession of any Card which is identified through the authorization process as a "pick up card" and deliver to Bank cut into two parts or as otherwise directed; (xiii) within FiVE (5) days of receipt of any request by Bank. provide to Bank either the actual paper sales draft or a legible copy thereof (in size comparable to the actual sales draft), and any other documentary evidence available to Merchant and reasonably requested by Bank to meet its obligations under the law (including its obligations under the Fair Credit Billing Act) or otherwise respond to cardholder account inquiries and potential chargebacks. 5. Merchant will NOT (i) impose minimum or maximum dollar amounts as a condition for honoring cards; (ii) impose a surcharge or assessa discount rate for credit card transactions [provided, however, discounts for payment in cash are permitted]: (iii) request personal identification or phone number as a condition for acceptance; (iv) obtain any security interest from the cardholder in connection with any sales draft; (v) discriminate as to price, service, or otherwise against any person using or desiring to use a Card, except as permitted by law; (vi) make any cash refund to the cardholder for any credit transaction; (vii) process a sales draft for any amount of cash; (viii) intentionally withhold sales drafts or credit vouchers for any period of time without prior knowledge and consent of Bank [Bank reserves the right to refuse presentation of stale dated sales drafts and credit vouchers which exceed established time limits]; (ix) use multiple sales drafts for a single Card use, with the exception of partial payments or delayed delivery deposits which are clearly marked on the original and subsequent sales drafts representing the balance; (x) honor or present sales drafts that relate to sales or services sold or performed by anyone other than Merchant's direct employees or for sales or services other than those arising out of Merchant's usual trade or business; (xi) sell, purchase. provide or otherwise disclose the cardholder's account information or other cardholder personal information to any third party other than Bank. Merchant's agents and processing organizations for the purpose of assisting Merchant in its business, or as required by law, unless Merchant obtains the cardholder's express written consent to the disclosure; (xii) present sales drafts until the goods have been shipped or the services have been performed and Merchant has otherwise performed all of its principal obligations to the customer. except as permitted by paragraph 5(ix); or (xiii) present to Bank. directly or indirecliv. any sales draft or credit voucher that Merchant knows or should have known to be fraudulent or not authorized by the cardholder, that results from a transaction outside Merchant's normal course of business. that results from a transaction not involving Merchant, or that contains the account number of a Card Account issued to Merchant. 6. Unless specifically authorized in accordance with procedures established by Bank. Merchant shall not issue a sales draft on the basis of a telephone or mail order. Merchant ®is ❑ is not authorized to accept transactions placed by mail or telephone. In the event Merchant is authorized to process such sales drafts for payment without the Card's presentment at the time of the transaction or the cardholder's signature being obtained, all such sales will be at Merchant's risk and subject to offset if charged back. 7. Merchant shall comply with all laws applicable to Merchant. Merchant's business, and any Card transaction, including. without limitation, all state and federal consumer credit and consumer protection statutes and regulations. Merchant will provide Bank with all information relating to transactions through use of a Card necessary for Bank to comply with such laws and regulations. Merchant shall follow all procedures as maybe required by applicable rules and regulations of Bank. VISA and MCI. Merchant also agrees to comply with instructions contained in any operating guide that Bank, VISA and/or MCI may issue and amend front time to time. Bank may issue rules relating to the operation of the Card Plan as well as subsequent amendments or supplements to such rules, all of %yhich will be binding upon the Merchant at the time Merchant is served notice. 8. Merchant agrees to indemnity and hold Bank harmless from any claim against Bank relating to any transaction involving Cards or sales transactions with Merchant or Merchant's refusal to engage in such sales transactions as may be made by anyone by way of defense, dispute, offset, counterclaim or affirmative action, and Merchant shall reimburse Bank for all expenses and costs, including attorneys' fees with regard thereto. Bank's liability to Merchant with respect to any Card transaction shall not exceed the amount on the sales draft in connection with that transaction less any applicable discount. Bank shall in no event be liable for any incidental or consequential damages whatsoever. 9. Merchant agrees to maintain with Bank a deposit account with a balance sufficient to maintain the Card flan as required by Bank. subject to Bank's rules governing deposit accounts. which shall be designated as Merchant's principal deposit account for credit card transactions. Bank will credit Merchant's account at Bank each business day for such percentage of the total face amount of each sales draft accepted and purchased hereunder as is agreed upon between Bank and Merchant, subject to the terms and conditions of this Agreement. Any payment made by the Bank to Merchant shall not be final, but shall be subject to subsequent review, verification and final audit by Bank. Merchant agrees that in the case of any error, Bank may charge or credit Merchant's account, without notice, for any deficiencies or overages that may occur. The preparation and delivery to Bank by Merchant of sales drafts shall constitute an indorsement to Bank by Merchant of each sales draft.. Merchant hereby waives notice of default or non - payment, protest, or notice of protest. demand for payment and any other demands or notices in connection with this Agreement or any sales draft. Merchant hereby consents to extensions of time granted or compromises made with any cardholder liable on any sales draft without affecting Merchant's liability. Merchant agrees that all of its obligations under this Agreement shall be secured by all deposit accounts, including the principal deposit discount, maintained by Merchant with Bank and by all other personal property that serves as collateral for any other indebtedness arising out of Merchant's business and owed by Merchant to Bank. Should the balance of Merchant's principal deposit account be insufficient to cover a debit to that account. Merchant shall pay the additional amount to Bank on demand. Before or after such demand. Bank may assert a right of offset against any other deposit account(s) maintained by Merchant with Bank. 10. Bank shall be entitled to a discount fee for each sales transaction accepted by Bank pursuant to this Agreement. Bank shall compute a discount fee at a rate established by the Bank. Bank reserves the right to amend or alter the rate(s) of discount fee imposed on individual sales draft(s) or credit voucher(s) deposited with Bank when Merchant fails to make deposits on a timely basis. The discount rate(s) shall be applied to the amount of sales drafts received by Bank. Credit vouchers will not be charged discount fees. The discount may be collected by Bank by debit to Merchant's designated deposit account on a daily, monthly or other basis, as determined by Bank. The discount fee will he charged against Merchant's principal deposit account at Bank, without advance notice sent to Merchant by Bank. Merchant agrees to pay to Bank the discount fee based on the rate(s) established at the time this Agreement is entered into by Merchant and Batik, which are as follows: VISA DISCOUNT RATE(S): MV Led Qualified © Mid - Qualified ® Non - Qualified ❑ Other C MASTERCARD DISCOUNT RATE(S): :TS % 5 l' ® Qualified 3.75 % a 3-•� % .S /`' ® Mid - Qualified 3.75 —3---7-5 °io ;? 5S' Non - Qualified 3.75 % % ❑ Other % Bank will charge to Merchant's principal deposit account without advance notice, monthly services charges as noted: ❑ POS terminal support $ ❑ Minimum bill $ ❑ POS equipment rental $ ® No activity S 5.00 ❑ Per authorization $ ❑ Per non- bankcard S ❑ Per item $ ❑ Account maintenance S ❑ Per chargeback $ ❑ Per draft retrieval S ❑ Per proof adjustment S ❑ Other S �r 12. the amount of the discount rates) and monthly fee(s) are guaranteed not to change for a minimum period of six months. at which time Bank may decrease or increase the discount rate(s) and/or fee(s) to rcnecl actual merchant performance under this Agreement. Discount rate(s) and fee(s) can be adjusted at any time thereafter inunediatcly upon written notification to Merchant from Bank. 13. Bank will charge to Merchant's account the following additional one time costs as agreed: ❑ POS installation $ ❑ Initial setup $ ❑ POS terminal purchase $ ❑ Supplies $ ❑ POS printer purchase $ ❑ Imprinter $ ❑ POS shipping $ ❑ Other $ 14. Merchant shall notify Bank if Merchant elects to accept Cards issued by American Express. Discover Card. or Diners Club through the use of an electronic terminal. Am• third- party. or "non- bankcards." accepted are subject to fees including. but not limited to, installation and authorization expenses as defined by Bank. Merchant understands that non- bankcard rates. fees and other contractual elements are negotiated and settled directly between Merchant and third -party Card issuer. 5. Merchant agrees to pay Bank the amount of any sales drafts, and Bank shall have the right to charge Merchant's account without notice in any situation relating to such sales drafts where: (i) merchandise is returned and accepted by Merchant, whether or not a credit voucher is delivered to Bank: (ii) any sales transaction giving rise to the sales draft fails to comply :with the provisions of paragraph 4 of this Agreement: (iii) the sales draft is alleged to have been drawn, accepted. or indorsed improperly or without authority: (iv) the sales draft is illegible, incomplete or otherwise indiscernible or is not delivered to Bank within the required time limits: (v) the sales draft is a duplicate of an item previously paid. or is one of two or more sales drafts generated in a single transaction in violation of this Agreement; (vi) the cardholder disputes the execution of the sales draft, the sale. delivery, quality or performance of the goods and services purchased, or alleges that a credit adjustment was requested and refused or that a credit adjustment was issued by Merchant but not posted to the cardholder's account: (vii) the price of goods or services shown on the sales draft differs from the amount shown on the copy of the sales draft delivered to the customer at the time of the transaction: (viii) the sales draft was drawn by or credit given to Merchant under circumstances constituting a breach of any term, condition, representation. warranty, or duty of Merchant hereunder; (ix) the extension of credit for merchandise sold or services performed was in violation of law or rules or regulations of any governmental agency, federal, state, local, or otherwise: (x) the sales draft was not completed according to this Agreement or instructions contained in any Merchant operating guide issued by Bank. VISA, or MCL• (xi) Merchant's rcdeposit of a sales draft previously charged bank without express consent of cardholder and bearing cardholder's signature: (xii) Bank reasonably determines that Merchant has violated the terms, conditions, covenants, warranties, or other provisions of this Agreement: (xiii) Bank rea_cnably determines that the sales draft or credit voucher evidencing the transaction is fraudulent or that the related transaction is not a bona fide transaction arising in the ordinary course of Merchant's business or is subject to any claim of illegality, canccllatier.. recession, avoidance, or offset for any reason whatsoever, including without limitation. negligence, fraud or dishonesty on the part of Merchant or Merchant's agents or employees; (xiv) the issuer of the Card charges the sales draft back to Bank for any reason not otherwise listed above. 16. Following notice of chargeback to Merchant. Bank shall promptly surport to Merchant any sales draft, customer letter or other evidence of dispute or error as supplied to Bank. Merchant may correct the offense and resubmit the transaction as appropriate or defend the dispute for reconsideration if a rebuttal is provided to Bank within FIVG (5) businessdays and allowed by either VISA or MCI. Merchant shall reimburse Bank for any fees imposed by or through MCI or VISA as a result of chargeback activity, extraordinary chargeback volume or of any failure by Merchant to comply with the provisions of this Agreement or ViSA and IICI rules. 17. Bank shall have the sole right to receive payment on sales drafts purchased by Bank. Merchant agrees not to sue or make any collection thereon, except as may be-spccifically authorized by Bank. In the event of such authorization. Merchant agrees to hold all collections. if any. in trust for Bank and deliver same in kind immediately upon request. Is. Merchant will notify Bank no later than thirty (30) days prior to any change in business name, ownership; structure. or type of merchandise or services sold. Failure to promptly do so will be considered a breach of contract and subject Merchant to termination of this Agreement. 19. Merchant shall. upon demand, repurchase all outstanding sales drafts purchased by Bank on which recourse may be exercised under this Agreement where the Merchant: (i) fails to comply with any terms of this Agreement: or (ii) becomes insolvent or ceases to do business. Bank shall have the right to charge Merchant* s account without notice in such cases for all outstanding sales drafts. 20. Merchant agrees that Bank may investigate or obtain credit information on the Merchant relating to Merchant's credit and financial responsibility and likewise investigate or obtain credit information on any owner or principal of the Merchant. Merchant agrees to provide (lank with accurate. valid, signed and dated financial statements within live (5) business days of Bank's request. Bank may periodically examine and verity all records of Merchant pertaining to sales drafts sold to Bank hereunder. Bank reserves the right to inspect Merchant's business premises) upon request. Bank may request an escrow. personal guarantee, or security deposit at any time during the course of this Agreement should Merchant's credit - worthiness decrease or Bank's risk increase, all as reasonably determined by Bank. From time to tine. Bank may amend and- provision or provisions of this Agreement by mailing a written notice to r Merchant of the amendment at least thirty (30) days prior to the effective date of the amendment. and the amendment shall become effective unless Bank receives Merchant's notice of termination of this Agreement before such effective date. Amendments to this Agreement which are required due to changes in ViSA's Bylawsan(For Operating Regulations or the MCI Operating Rules and Regulations or any law or judicial decision shall become effective on such shorter period of time as Bank may specify if necessary to comply with the requirement of VISA or MCi or with any law or judicial decision. 22. This Agreement shall become effective when signed by both parties and shall remain in full force and effect until terminated as follows: (i) This Agreement may be terminated by either party irirhourcarueuponthirty (3 0) days' prior written notice to that effect. (ii) Should Bank have reasonable cause to believe or suspect that Merchant is not complying or does not intend to comply with the terms and conditions hereof or that an extraordinary dollar amount or number of transactions have been or are likely to be charged back to Bank pursuant to operating rules or regulations of VISA or MCI, Bank may not provide Merchant with advance notice of the termination. (iii) Upon the effective date of any termination. Merchants rights hereunder to enter into Card transactions. to deposit sales drafts with Bank, and to use forms. promotional material. any other items provided by Bank hereunder or any of the VISA or MCI service marks or logos shalt cease, but each party's obligations in connection with any sales drafts or credit vouchers accepted by Bank (whether before or after such termination), including, without limitation. Merchant's chargeback obligations. shall survive such termination. (iv) If Bank terminates this Agreement without having to give Merchant advance notice, for the period during which any previously presented sales drafts are subject to chargeback to Bank pursuant to the then effective operating regulations of VISA or MCI, as applicable, Bank shall have the rightto suspend Merchant's right to withdraw any funds from any deposit account maintained by Merchant with Bank, including. without limitation, Merchant's principal deposit account: provided, however, that Bank shall not suspend such right in a fashion that would deprive Merchant of the use of its deposit account or accounts beyond the extent required to assure Bank's ability to recover from Merchant, by exercise of Bank's right to set off against such deposit account or accounts, the amount of each and every sales draft as to which there remains a potential chargeback right as against the Bank under said operating regulations. Merchant understands that Bank cannot determine with certainty whether sales draft will be charged back to Bank until a reasonable chargeback period has expired as to the sales draft. Bank shalt not exercise its rights under this subparagraph (iv) unless it has reasonable cause to believe or suspect that a significant dollar amount or number of sales drafts are likely to be charged back to Bank because of the breach or suspected breach of this Agreement by Merchant or because of Bank's previous experience with chargebacks related to Merchants sales drafts. Bank agrees to reinstate Merchant's right to withdraw funds front its deposit accounts urondeliver- to Bank of a bond, a letter of credit. or another undertaking or collateral security reasonably believed by Bank to protect Bank's interests relative to such chargebacks. (v) For purposesof this paragraph 22 . Merchant ackno%% ledges t+' tz t because of the potential fordamage to Bank in the event of a material breach or repeated breaches of this Agreement by Merchant or because of chargebacks, the term "reasonable cause to believe or suspect" shall be de :ermined solely in the Bank's good -faith judgment and without regard to the actual occurrence of a breach or chargebacks. (vi) Following termination. Merchant shall retain and upon revest, provide Bank will all original or copies of transaction records Isales drafts and credit vouchers) required to be retained until the time of termination. 23. Should suit be brought by either party to enforce the terms of this Agreement. the prevailing party shalt be entitled to recover from the other its costs and expenses of suit, including its reasonable attorrt%s fees. 24. Failure by Bank to enforce one or more of the provisions of this Agreement shall not constitute a waiver of the right to enforce the same or any other provision in the future. 25. Notices to Merchant shall be deemed given when personally delivered or deNnsited in the U.S. Mail. postage prepaid. addressed as shown in the signature block of this Agreement. Notices to Bank shall be deemed given when received by Bank at its address shown in the signature block below. The address of either party can be changed by notice to the other party. THIS AGREEMENT is accepted and is in effect this BANK: The First State Bank of Rosemount By: Title: Date: Address: 3025 145th St. W. yo box 479 day of MERCHANT: By: Title: Date: Address: 19 Business/Corporate Name: Statement Mailing Address W lldierent from Physical Address): DBA (Doing Business As) Name: City, State, Zip Code: Site Address: Federal Tax ID dumber. State Tax ID Number. City, State, Zip Phone Number: Facsimile Number: Type of Goods or Services Sold: Number of Years in Business: Number of Locations: Is Business Premise Onvned or Leased? If Lease, Pro%ide Name /Phone of Landlord: Merchant Location: (Circle One): Store Front Residence Office Building Number. Mobile Merchant Other. Drivers License Number. Residential Address: Phone Number: ( ) Secondary Name/Tide: [Social Security dumber. Drivers License Number. Residential Address: Phone Number. ( T Any Owner/Principal/Mvjority Shareholder Ever FIed Bankruptcy? Ever Terminated By Visa/MasterCard? If Yes, Explain: Ownership (Circle One):Solc Proprietor Partnership Corp Medical/Legal Corp Association Tax Exempt Govt International Limited liability Business Certification (Circle Only One): 1.Not Certified 2.SBA Certified 3S &-k Disadvantaged Business 4.Other Government/Agency Recognized Certification 5.Self- Certified Small Business 6SBA Certified Small Business And Government 7SBA Certified Small Disadvantaged Business And Goverrruricntt/'Agency Recognized G'8.Other Government`Agency Rcco�gnizcd And Self - Certified Small Business 9.OtherrUnkno«m ���1� ����l.,t�_ r.�x� �_� tu- �� ,�4..... '�'s rz4 .: Y �r {�� ��Ya ' ,��,�, tt ,s s��`���•''�� ' -\fl 4` 'rdq,19q •- �Y1:isY.,W. AA R _... ,.L � v... 4 .5:�.., "i,?...:1. �:. - . .. .... s w... ...a„sial: Sales Breakdown (rotal Must Equal 100;16): % Facc- to-Facc v 96 titan - %Telephone Projected Average Ticket Size: S Projected Annual � tsaAMasterCard Sales: S Currently Accepting Visa/MasterCard? If Yes, With: List All Current Rates And Fees: Are Sales Processed Electronically? If Yes, Provide Terminal Modcl: �Circle All Terminal Telephone Options That Apply: Dial °9' For Line Touch tone Rotary in c line Extension Currently Accept Discover Card? If Yes, Merchant Account Number. If No, Would You Like To? Currently Accept American Express? If Yes, Merchant Account Number. If No, Would You Like To? ! Q Currently Accept Diners Club? IIf Yes, Merchant Account Number. If No, Would You Like To? APPIT �` Gl�A�L�'RE�'°�'; ��, ���..;,� �' r� - ..' r:�• � � - - � �x _ , I certify the information provided abo%v is true to the best of my knowledge and authorize obtaining any credit information concerning me or my business required in connec- tion with this application. I agree to pro%idc all changes pertaining to any of the information contained herein which may occur after this application. Applicant Signature/Date Co-Applicant Signature/Date (If Applicable) The following data is requested by MasterCard for informational purposes only and not used as grounds for approval. Though applicant is encouraged to furnish, Bank will supply on the basis of visual observation if left blank: Ownership: (Circle Only One): I. Male 2. Female 3. Female O«ner Physically Handicapped 4. Male Owner Physically Handicapped S. Unknown Majority Owner Racial or Ethnic Type: (Circle Only One): 1. African American 2 Asia Pacific American & Subcontinent Asian American 4.Hispanic American 5. Native American Indian 6.Native Haw2iian 7. Natitiv Alaskan & Caucasian 9.0ther 10.Unknonm Survey Inspected By: DDA For Setticro mt Approved By (Signed): Date Approved: use 11.98