HomeMy WebLinkAboutItem 06.jJanuary 6, 2020 Item No.________
APPROVAL OF AMENDMENT TO CONTRACT FOR ONLINE PAYMENT PORTAL
WITH PAYMENT SERVICE NETWORK, INC (PSN)
Proposed Action
Staff recommends adoption of the following motion: Move to approve a contract amendment for
expansion of online payment portals with Payment Service Network, Inc (PSN).
Overview
The City approved a contract with PSN in July 2017 for its online payment portal for utility billing
customers.
During the October 28, 2019 council workshop, Council directed Staff to pass along credit card
transaction fees to the user for building permits, special assessments and miscellaneous billings.
Staff will be utilizing PSN to create additional online portals and process the electronic payments.
An amendment to the contract was needed.
A copy of the original contract with PSN is attached with the amendment for Council approval.
The City Attorney has reviewed the amendment to the PSN contract.
Supporting Information
•A copy of the original PSN contract is attached with amendment noted in sections A
and B to include pass through fees for permits, special assessments and other
miscellaneous charges.
Financial Impact: $ N /A Budgeted: Y☐ N☐ Source: N/A
Related Documents: (CIP, ERP, etc.): N/A
Envision Lakeville Community Values: Good Value for Public Services
Report Completed by: Jerilyn Erickson, Finance Director and Julie Werner, Assistant Finance
Director
PAYMENT SERVICE NETWORK, INC. SERVICE AGREEMENT
THIS AGREEMENT FOR SERVICE ("Agreement") is made as of 7/25/2017 (the "Effective Date") between
City of Lakeville, MN ("Account Holder") and Payment Service Network, Inc. ("PSN").
RECITALS
Account Holder wishes to register its business with PSN so that Account Holder's customers
Customers") can make payments through the PSN Web site, www.PaymentServiceNetwork.com (the
Site"), by facsimile transmission, or telephonically via 800# access.
Account Holder and PSN desire to formalize their agreement as set forth below.
NOW THEREFORE, in consideration of the Account Holder's registration for the Services, the
foregoing recitals, the mutual promises herein contained and other good and valuable consideration the
receipt and sufficiency of which is hereby acknowledged, Account Holder and PSN, intending to be legally
bound, hereby agree as follows:
1. Account Holder authorizes PSN to collect payments from Customers to the extent such
Customers have agreed to the terms and conditions of the Site. PSN shall collect the
Fees" (as shown on Schedule B) in the manner, amounts and pursuant to the terms set
forth on Schedule B. Schedule B specifies those Fees payable by the Customer and those
Fees payable by the Account Holder.
2. The Services to be provided by PSN (the "Services") are as follows:
a. PSN agrees to accept payments from the Customers by checking/savings account or
credit/debit card through the Site, or otherwise (phone in or fax in). Customers who
utilize PSN's payment network will also be required to register on the Site and will be
bound by the terms and conditions set forth on the Site.
b. Account Holder is given real-time access to all account information via PSN' s
administrative logon. Such access will be provided to all Account Holder
representatives designated in writing by Account Holder. The account information
available will include transaction totals, specification by account, and specification by
transaction/account type (e.g. utilities, taxes). PSN and Account Holder will jointly work
to develop compatibility of the reporting and accounting information with the Account
Holder's management and account software. Said access to all account information
will be provided by PSN to Account Holder under the following conditions.
1. Said compatibility does not adversely affect, alter or change PSN's established
service;
2. Said compatibility is a joint effort between PSN and Account Holder with the
Account Holder providing all the needed information to PSN regarding current
and/or future management and accounting software.
c. PSN will provide, for each Customer who sets up a profile within the PSN system, real-
time access to such Customer's account information (but not the information of any
other Customer) through the Site. If applicable, PSN will inform each Customer of the
charging and amount of any subscription and/or fees or charges for the Services that
will be charged to the Customer for the Services. PSN agrees to indemnify and hold
harmless Account Holder from all claims and liabilities arising out of a dispute based on
non -disclosure of PSN Fees to Customers.
d. PSN will provide Account Holder with Check 21 services as described in, and on the
terms and conditions set forth in, the Check 21 Addendum if Account Holder provides
PSN with a written request for such services. Account Holder agrees to be bound by
the terms of such Addendum if it elects to receive such services.
e. PSN will provide Account Holder with V Post services as described in, and on the terms
and conditions set forth in, the V Post Addendum if Account Holder provides PSN with
Note: Bank interchange rates are subject to change; therefore, this quote is valid for 15 days from date of issue. 1
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PAYMENT SERVICE NETWORK, INC. SERVICE AGREEMENT
a written request for such services. Account Holder agrees to be bound by the terms of
such Addendum if it elects to receive such services.
f. PSN will provide Cash Distribution services as described in, and on the terms and
conditions set forth in, the Cash Distribution Addendum if Account Holder provides PSN
With a written request for such services. Account Holder agrees to be bound by the
terms of such Addendum if it elects to receive such services.
g. PSN will provide a non-exclusive license to use a Customized Mobile App as described
in, and on the terms and conditions set forth in, the Mobile Application Addendum if
Account Holder provides PSN with a written request for such services. Account Holder
agrees to be bound by the terms of such Addendum if it elects to receive such services.
h. PSN will maintain a Payment Card Industry ("PCI") Level 1 security certification (or
other succeeding security standard required of PSN by PCI) to ensure security of
Customer and Account Holder data.
3. PSN reserves the right to modify the Services and Fees and service charges chargeable to
Account Holder or its Customers in its sole discretion from time to time. PSN will notify
Account Holder of material modifications to the Services or Fees and service charges by
electronic means to a designated representative of Account Holder or by written notice at
least thirty (30) days prior to the effective date of any such modifications. Account Holder
also consents to receiving from PSN any Federal tax statements or other notices required
by Federal, State or Local law in an electronic format.
4. Account Holder agrees to cooperate with PSN in resolving any disputes between Account
Holder and Customers in a timely manner, reaffirming that PSN is only a payment
intermediary and does not own the property or business or represent the Account Holder or
Customer in such disputes. Disputed transactions and chargeback's will be handled in the
following manner:
a. Credit Card Transactions:
1. PSN will notify Account Holder via electronic mail of any disputed credit card
payments or chargeback's from Account Holder's Customers. Account Holder
agrees to follow its standard operating procedures to resolve such disputed or
charge -backed credit card payments and work with PSN, the credit card company,
or its agents to investigate any such cases and assist in resolving any such claims.
2. Account Holder will be charged a fee of Fifteen Dollars ($15.00) for each
chargeback that is ultimately allowed, at which time, Account Holder gives PSN the
authorization to automatically debit Account Holder's account for the total of the
original transaction plus the Fifteen Dollars ($15.00) chargeback fee for the
purpose of charging it back to the Customer.
b. ACH - Checking and Savings Account Transactions:
1. Problem transactions: NSF, Invalid Account, Receiver's Account Closed, No
Account, Stopped Payment, Account Frozen, Customer Does Not Authorize
Payment, RDFI Not ACH Member and/or any other Return Reason Codes as
labeled in NACHA Processing Guidelines will be resolved in the following manner:
a. PSN will notify Account Holder and Customer of said problem;
b. PSN will stop payment if funds have not already been deposited or, if directed
by Customer, process another transaction for Customer.
c. In the event that PSN, within one (1) business day, cannot collect the
appropriate information from Customer in order to complete the reprocessing of
the Customer's transaction and funds from said transaction have been
deposited into Account Holder's account, PSN will debit Account Holder's
account for a total sum of the original deposit for said transaction.
Note: Bank interchange rates are subject to change; therefore, this quote is valid for 95 days from date of issue. 2
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PAYMENT SERVICE NETWORK, INC. SERVICE AGREEMENT
5. The initial term of this Agreement shall be for a period of three (3) years commencing on the
date that the first payment transaction is processed by PSN for any Customers under this
Agreement (the "Initial Term"), and shall automatically extend for additional periods of one
1) year (each, an "Extension Term") unless one of the parties provides the other party with
written notice of termination of this Agreement at least sixty (60) days prior to the end of the
Initial Term or any Extension Term. Notwithstanding the foregoing, Account Holder may
terminate this Agreement upon ninety (90) days' prior written notice and payment of Five
Hundred Fifty Dollars ($550.00) to PSN as an early termination fee, provided however, that
no early termination fee shall be due or payable by Account Holder if it terminates this
Agreement under this Section within thirty (30) days of the date on which PSN delivers
notice of material modifications to the Services, Fees or service charges under Section 3 of
this Agreement other than increases of fees and service charges that are attributable to
direct pass through increases from PSN's merchant bank. PSN will process all payments
received prior to the date of termination and forward them to Account Holder's account. No
Payments will be accepted from Customers after the date of termination. All obligations of
Account Holder arising from transactions prior to termination shall survive termination of
this Agreement. PSN will notify all Customers registered on the Site as to the termination of
this Agreement and inform such Customers that future payments are to be made directly to
Account Holder. Notwithstanding any termination of this Agreement, for a period of one
hundred eighty (180) days after such termination, Account Holder acknowledges and
agrees that PSN shall have the right to automatically withdraw any amounts from Account
Holder's depository account that PSN would otherwise have the right to withdraw during the
term of this Agreement, including without limitation, credit card chargebacks, the reversal of
any Customer payments deposited by PSN into Account Holder's account for which there
are insufficient funds, and other disputed charges and problem transactions specified in
paragraph 4 of this Agreement.
6. This Agreement may not be assigned by Account Holder without PSN's prior written
consent. If PSN gives consent to assignment of this Agreement by Account Holder as set
forth above, PSN reserves the right to charge the assignee the Setup Fees shown in
Schedule B. PSN may assign this Agreement.
7. This Agreement and the Services to be provided by PSN hereunder in no way alters or
modifies the obligations contained in the agreements, if any, between Account Holder and
Customers.
8. Account Holder represents, warrants and covenants to PSN that PSN is authorized to
collect payments from the Customers for which Account Holder provides PSN the required
information. Account Holder further represents, warrants and covenants to PSN: (a)
Account Holder has the authority to enter into this Agreement and perform its obligations
set forth therein; (b) Account Holder will provide all reasonable assistance to PSN and its
subcontractors in providing the Services set forth herein; (c) Account Holder and its
authorized users will only use the Services for lawful purposes and in compliance with the
rules and regulations of the applicable payment processors (including, without limitation,
MasterCard, Visa, Discover and American Express), credit card issuers, and depository
account institutions (collectively, the "Rules and Regulations"), and in accordance with
PSN's account documentation, policies, specifications, and operating procedures, and will
not violate any law of any country or the intellectual property rights of any party; (d) Account
Holder shall timely provide all required disclosures to its Customers and obtain any required
authorizations pursuant to the Rules and Regulations; (e) Account Holder shall maintain or
destroy, as applicable, checks, receipts, and/or payer authorizations in accordance with
applicable law and/or retention periods; and (f) Account Holder and its authorized users will
not (i) sell, lease, distribute, license or sublicense PSN's Site, technology or Services, (ii)
engage in spamming, mail -bombing, spoofing or any other fraudulent, illegal or
unauthorized use of the Services; (iii) introduce or transmit through the Site, technology or
Services, without limitation, via any portion of the Account Holder's computer system that
interfaces with the Site, technology or Services, or otherwise, any virus, worm, software
lock, drop dead device, trojan-horse routine, trap door, back door, timer, time bomb, clock,
counter or other limiting routine, instruction or design or any other codes or instructions that
may be used to access, modify, delete, damage, disable or prevent the use of the Site,
technology, or services or other computer systems of PSN or its subcontractors; and (iv)
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PAYMENT SERVICE NETWORK, INC. SERVICE AGREEMENT
should Account Holder receive notice of any claim regarding the Site or Services, Account
Holder shall promptly provide PSN with a written notice of such claim.
9. a. Account Holder agrees to defend, indemnify, and hold PSN harmless from and
against any third -party claims and/or Customer claims, including any damages, costs,
expenses and attorneys' fees to the extent arising, in whole or in part, out of (a) any
inaccuracy in or breach of Account Holder's representations and warranties contained in
this Agreement; (b) Account Holder's breach of any covenant or obligation contained in this
Agreement; (c) any claims or disputes arising under any agreement between Account
Holder and a Customer (or any third party) or otherwise relating to the relationship between
Account Holder and a Customer (or any third party) including, without limitation, any dispute
over the amount owed by a Customer to Account Holder (other than claims relating to PSN
fees); and (d) any claims or disputes caused in whole or in part by the information or
directions provided to PSN by Account Holder or its agents. Account Holder's obligations
under this paragraph do not apply to any of the foregoing causes to the extent resulting
from acts or omissions of PSN.
All data created, collected, received, maintained or disseminated for any purpose in the
course of this Contract is governed by the Minnesota Government Data Practices Act,
Minn. Stat. Ch. 13, any other applicable state statute, or any state rules adopted to
implement the act, as well as federal regulations on data privacy.
b. PSN agrees to defend, indemnify, and hold Account Holder harmless from and
against any third -party claims and/or Customer claims, including any damages, costs,
expenses and attorney's fees to the extent arising, in whole or in part, out of (a) any
inaccuracy in or breach of PSN's representations and warranties contained in this
Agreement; (b) PSN's breach of any covenant or obligation contained in this Agreement;
and (c) any claims or disputes arising under any agreement between PSN and a Customer
or any third party) or otherwise relating to the relationship between PSN and a Customer
or any third party). PSN's obligations under this paragraph do not apply to any of the
foregoing causes to the extent resulting from acts or omissions of Account Holder.
10. PSN and Account Holder are independent contractors and this Agreement does not
establish any relationship of partnership, joint venture, employment, franchise or agency
between PSN and Account Holder. Neither PSN nor Account Holder will have the power to
bind the other or incur obligations on the other's behalf without the other's prior written
consent, except as otherwise expressly provided herein.
11. PSN represents that it owns and will retain during the term of this Agreement all proprietary
rights in and to all development tools, routines, subroutines, applications, software and
other materials that PSN may use in connection with implementation and operation of the
Site, and has the right to license and otherwise permit Account Holder's and Customers'
usage of such Site and other materials in accordance with the terms of the Agreement.
This Agreement does not transfer to Account Holder any ownership or proprietary rights in
PSN's Site, technology or any work or any part thereof, and all right, title and interest in and
to PSN's Site and technology will remain solely with PSN. PSN agrees to indemnify and
hold Account Holder harmless from any liabilities or charges, including attorney's fees,
arising out of any claim that PSN or Account Holder has infringed the proprietary rights of
others in performing the Services under this Agreement or in operating the Site.
a. PSN shall notify Account Holder if PSN changes or adds any functionality of the
Services as implemented on the Site. Under no circumstance shall PSN offer
Customers of Account Holder any community features (such as mail, chat, message
boards, or the ability to create home pages) from the Site. PSN shall not, in conjunction
with the Site or the Services, use any interstitials Web pages, pop-up windows, other
intermediate steps or any other content which acts as a barrier to the transition of a
Customer from Account Holder's Web site to the Site.
b. PSN shall be responsible for providing all customer support regarding the Services or
the Site and Account Holder may redirect to PSN any associated customer support
inquires.
Note: Bank interchange rates are subject to change, therefore, this quote is valid for 15 days from date of issue. 4
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PAYMENT SERVICE NETWORK, INC. SERVICE AGREEMENT
c. PSN's privacy policy shall make any disclosures, or obtain any Customer consent
necessary, to make the disclosures about Customers back to Account Holder required
by this Agreement.
d. Account Holder hereby grants to PSN a non-exclusive, worldwide, revocable right to
use Account Holder's domain names, trademarks and logos reasonably necessary for
PSN to perform under this Agreement (collectively, the Marks"). Account Holder may
terminate the foregoing right to use the Marks if, in Account Holder's sole discretion,
PSN's use of the Marks is not related to PSN's performance under this Agreement or
PSN's use of the Marks tarnishes, blurs, diminishes, or dilutes the quality associated
with the Marks or the associated goodwill and such inappropriate use is not cured
within thirty (30) days of notice of such inappropriate use. Title to and ownership of the
Marks shall remain with Account Holder, and PSN shall have no ownership interest in
the Marks. PSN shall not take any action inconsistent with Account Holder's ownership
of the Marks, and any benefits accruing from the use of such Marks shall automatically
vest in Account Holder.
12. PSN WARRANTS THAT IT WILL PERFORM THE SERVICES IN ACCORDANCE WITH
THE TERMS OF THIS AGREEMENT. EXCEPT AS SET FORTH IN THE PREVIOUS
SENTENCE AND PARAGRAPH 11 ABOVE, PSN AND ITS SUBCONTRACTORS MAKE
NO REPRESENTATIONS OR WARRANTIES, WHETHER EXPRESS, IMPLIED OR
STATUTORY REGARDING OR RELATING TO ANY OF THE SITE, TECHNOLOGY OR
SERVICES AND/OR ACCESS TO OR USE OF THE SITE SERVICES OR
TECHNOLOGY PROVIDED TO ACCOUNT HOLDER AND/OR ITS CUSTOMERS
HEREUNDER. PSN AND ITS SUBCONTRACTORS SPECIFICALLY DISCLAIM ANY
AND ALL IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A
PARTICULAR PURPOSE, AND NOWINFRINEGEMENT. PSN AND ITS
SUBCONTRACTORS ALSO DO NOT GUARANTEE THAT ACCOUNT HOLDER'S
AND/OR ITS CUSTOMERS' ACCESS TO THE SITE OR SERVICES PROVIDED UNDER
THIS AGREEMENT WILL BE UNINTERRUPTED, ERROR FREE OR SECURE. PSN
AND ITS SUBCONTRACTORS DO NOT GUARANTEE THE ACCURACY OF, AND
SPECIFICALLY DISCLAIM LIABILITY FOR, INFORMATION OR DATA THAT IS
SUPPLIED OR KEY -ENTERED BY ACCOUNT HOLDER, ACCOUNT HOLDER'S
CUSTOMERS OR ACCOUNT HOLDER'S EMPLOYEES OR AGENTS. PSN AND ITS
SUBCONTRACTORS DO NOT WARRANT THE ACCURACY, RELIABILITY,
COMPLETENESS OR TIMELINESS OF THE CONTENT OF INTERNET WEB SITES OR
OTHER DATA RECEIVED BY ACCOUNT HOLDER OR ACCOUNT HOLDER'S
CUSTOMERS VIA THE INTERNET.
NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN, IN NO EVENT WILL
PSN'S LIABILITY TO ACCOUNT HOLDER, CUSTOMERS, OR ANY THIRD PARTY FOR
ANY DAMAGES OF ANY KIND, WHETHER ARISING IN CONTRACT, TORT
INCLUDING NEGLIGENCE) OR OTHERWISE, EXCEED AN AMOUNT EQUAL TO THE
FEES PAID BY ACCOUNT HOLDER AND ITS CUSTOMERSTO PSN FOR THE
SERVICES DURING THE SIX (6) MONTHS PRECEDING THE DATE ON WHICH THE
CLAIM FIRST ACCRUED (THE "LIABILITY CAP'). PSN SHALL NOT BE LIABLE TO
ACCOUNT HOLDER, CUSTOMERS OR ANY OTHER PERSON FOR ANY SPECIAL,
INDIRECT, INCIDENTAL, CONSEQUENTIAL (INCLUDING LOSS OF BUSINESS
PROFITS) OR PUNITIVE DAMAGES FOR ANY MATTER ARISING OUT OF OR
RELATING TO THE SITE, THE SERVICES, THIS AGREEMENT OR ITS SUBJECT
MATTER, EVEN IF PSN HAS BEEN APPRISED OF THE LIKELIHOOD OF SUCH
DAMAGES OCCURRING.
13. PSN agrees that all information of Account Holder and Customers, including without
limitation, Customers' names, addresses and account numbers, shall be treated as
confidential by PSN, shall not be disclosed to any third party (other than to credit card
issuers or PSN's processing bank in the performance of this Agreement) except as required
by law.
PSN agrees not to exploit or use such information except as expressly permitted by this
Agreement, and shall not sell, purchase, provide or exchange credit card account number
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PAYMENT SERVICE NETWORK, INC. SERVICE AGREEMENT
information without the written consent of the Customer. PSN will destroy any cardholder
information that is no longer necessary in a manner that will render the data unreadable.
14. PSN agrees to procure and maintain the following insurance policies and bond in no less
that the following minimum amounts (or such other minimum amounts, if higher, as required
by law), with such reasonable deductibles as PSN shall determine:
Errors and Omissions Professional Liability Coverage
2,000,000 Each Claim; $2,000,000 Aggregate; $100,000 Deductible
Commercial Umbrella Liabilfty Coverage
2,000,000 Each Occurrence; $2,000,000 Aggregate; $10,000 Retained Limit
Commercial Crime Coverage
250,000 Form A - Blanket Employee Dishonesty; $250,000 Form B - Forgery or
Alteration; $10,000 Form C - Money and Securities; $250,000 Business Service
Bond; $2,500 Deductible
Commercial General Liability Coverage
2,000,000 General Aggregate; $1,000,000 Each Occurrence; $100,000 Fire
Damage; $5,000 Medical Expense
Workers Compensation and Employers Liability Coverage
100,000 Accident; $500,000 Policy Limit; $100,000 Each Employee.
15. Account Holder understands that PSN is party to a Merchant Services Agreement pursuant
to which PSN is being provided with certain payment processing services by a member (a
Provider") of Mastercard, Visa, Discover and/or similar entities (collectively,
Associations"), and that Account Holder is a sub -merchant under said Merchant Services
Agreement. As a conditional precedent to PSN's obligations under this Agreement,
Account Holder shall enter into a Sub -Merchant Agreement with the Provider (on Provider's
current form) to satisfy the Associations' requirement that the Account Holder have a direct
contractual relationship with a member of the Associations.
16. This Agreement shall be governed by and construed in accordance with the laws of the
State of Minnesota, without application of its conflicts of law principles. For the purpose of
any dispute arising under, or related in any way to, the subject matter of this Agreement, the
parties agree that such dispute shall be heard exclusively by the federal or state courts
situated in Dakota County, Minnesota. The parties hereby submit to the exclusive
jurisdiction of the federal and state courts situated in Dakota County, Minnesota, and agree
not to raise any objection to or defense based upon the venue of said courts.
EACH PARTY HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A RIGHT OF TRIAL BY JURY WITH
RESPECT TO ANY DISPUTE ARISING UNDER OR RELATED IN ANY WAY TO THE
SUBJECT MATTER OF THIS AGREEMENT.
17. Account Holder will certify to PSN the identity of any person Account Holder has authorized
to act as its agent with respect to the Services. Any such person is authorized to, without
limitation, take any action on behalf of Account Holder as it relates to any Services. PSN
shall be able to conclusively presume that such agency continues until PSN receives
written notice to the contrary. PSN may rely on instructions received from such persons
and need not make any inquiries to confirm that the instructions are within the scope of the
agency.
18. The undersigned warrants and represents that he/she has all requisite authority to execute
this Agreement on behalf of Account Holder, and that he/she is authorized to bind Account
Holder to the terms of this Agreement.
19. This Agreement may be executed in counterparts. Each such counterpart shall be
considered an original, and all of such counterparts shall constitute a single agreement
binding the parties as if they had signed a single document. Faxed, photocopied and
scanned signatures shall be acceptable to and legally binding on the parties to this
Agreement. No party to this Agreement shall raise the use of a facsimile machine, email
transmissions, or other electronic transmission to deliver a signature or the fact that any
signature or this Agreement were transmitted or communicated through the use of facsimile
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machine, by email, or other electronic transmission as a defense to the formation of a
contract and each such party forever waives any such defense.
20. PSN agrees to comply with the Minnesota Government Data Practices Act,
Minnesota Statutes, Chapter 13 (the "Act"). PSN shall immediately report to
Account Holder any requests from third parties for information relating to this
Agreement. All data created, collected, received, stored, used, maintained, or
disseminated by PSN in performing its obligations is subject to the requirements of
the Act, and PSN must comply with those requirements as if it were a government
entity. Notwithstanding the foregoing, the Account Holder shall be solely
responsible for compliance with Section 13.025 of the Act. The Account Holder
agrees to promptly respond to inquiries from PSN concerning data requests. PSN
agrees to hold the Account Holder, its officers, department heads and employees
harmless from any claims resulting from PSN's failure to disclose data maintained
by PSN authorized for release by the Account Holder, and from PSN's unlawful
disclosure or use of data protected under the Act. The Account Holder shall hold
PSN, and its employees, agents, officers and directors harmless from any claims
resulting from the disclosure of data by PSN pursuant to any authorization of
direction for release by the Account Holder. Notwithstanding anything contained in
this Agreement to the contrary, in the event that PSN receives a request for data or
information maintained by PSN under the Act in connection with this Agreement,
PSN may report such request and the requesting party's contact information to
Account Holder; and Account Holder shall thereafter assume all responsibility in
connection with responding to such request and delivering or withholding the
requested data. PSN and Account Holder shall cooperate with each other in
meeting the requirements of this Section
Note: Bank interchange rates are subject to change; therefore, this quote is valid for 95 days from date of issue. 7
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PAYMENT SERVICE NETWORK, INC. SERVICE AGREEMENT
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
ACCOUNT HOLDER
Company: City of Lakeville, MN
Signature: rj _
Print Name: Douglas P. Anderson
Title: Mayor
Company: Cit -f Lakeville, MN
Signature: Ltalc ,
Print Name: Charlene Friedges
Title: City Clerk
PAYMENT SERVICE NETWORK, Inc.
By:
Name:
1-
01,,(/--
Title::
Payment Service Network, Inc.
2901 international Lane, Suite 101
Madison, WI 53704
608-442-5088 Direct; 877-390-7368 Toll Free; 608-442-5116 Fax
Note: Bank interchange rates are subject to change; therefore, this quote is valid for 15 days from date of issue. 8
Payment Service Network, Inc. 12901 International Lane, Madison WI 53704 1 www.PaymentServiceNetwork.com
PAYMENT SERVICE NETWORK, INC. SERVICE AGREEMENT
SCHEDULE "A" [Fill out sections I, II and IIII
I. CORPORATE OFFICE INFORMATION
Contact Name: Julie Werner Business Legal Name: City of Lakeville, MN
Address: 20195 Holyoke Avenue City, State, ZIP: Lakeville MN 55044
Telephone: 952-985-4400 Fax: 952-985-4499
Email: jwerner@lakevillemn.gov Website: www.ci.lakeville.mn.us
II. LIST OF ADDITIONAL PROPERTIES, ACCOUNTS OR SERVICES: (Please use a separate sheet if needed or an Excel spreadsheet if possible.)
Total Service Description or Address Tax ID Last 4 Digits of Contact Person Email Phone Number
Number Property Name If different from above) REQUIRED Checking for this account, if for this account, if for this account, if
Potential Account different from above) different from above) different from
Payers above)
25,000 Utility Payments Same as above
Special
Assessments
Inspections/Permits
Accounts
Receivable
Licensing
Misc
III. DEPOSITING AND INVOICING INSTRUCTIONS AND REQUEST FOR VOIDED CHECKS .
Please indicate by checking the appropriate box how you want PSN to debit its fees from your bank account(s).
X PSN should invoice and take its fees from the same bank account(s) to which it is depositing funds
PSN should invoice and take its fees from a different bank account than the one to which it is depositing funds
Attach to this Agreement, an actual voided check(s) for the bank account that PSN will deposit funds into and, if applicable, a voided check of the account from
which PSN will debit its fees. It must be a printed voided check and not a starter check, a deposit slip or other substitute. If it is not possible to attach a voided
check(s), then you can attach a letter from your bank(s) on bank letterhead that is legally signed by a bank representative, verifying your checking/savings account
number and the bank's routing number. NOTE: If using more than one bank account, mark each voided check to clearly identify which account it represents.
In order to debit fees from your account(s), you may have to inform your bank(s) that Payment Service Network (PSN) is an approved vendor. Once you have
signed and returned this Agreement, PSN will provide you with its official NACHA vendor number to provide to your bank(s).
Note: Bank interchange rates are subject to change; therefore, this quote is valid for 15 days from date of issue. 9
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PAYMENT SERVICE NETWORK, INC. SERVICE AGREEMENT
SCHEDULE 013" Fee Schedule for City of Lakeville, MN
The items marked with an "X" are applicable to this Agreement.
Basis Points=Fee charged by credit card companies/processors
Includes authorization fee by credit card company/processor and PSN's channel fee (e.g., phone)
Pass Thru=interchange fees charged by credit card companies (assures lowest fee charged by credit card company for that type of card)
Alf AmEx is less than $100, the Account Halder will be charged 2.30% plus 50C.
Net Deposits are Customer payment deposits less Transaction Fees.
Gross Deposits are Customer payment deposits including Customer paid Transaction Fees, if any.
Note: Bank interchange rates are subject to change; therefore, this quote is valid for 15 days from date of issue. 10
Payment Service Network, Inc. 12901 International Lane, Madison WI 53704 1 www.PaymentServiceNetwork.com
SETUP/EQUIPMENT FEES
Z One-time Setup Waived NA
Web Customization Custom 200.00 Paid by Account Holder
Mobile App Standard Included NA
Training Life of the Agreement Included NA
Software Integration included NA
Custom Programming NA
Integrated Swipe Credit Card Setup Included NA
Check Scanning Equipment CR -120 - Check Scanner 995.00 Paid by Account Holder
Credit Card Swipe Machine VX520 CITY 1 219.00 ea Paid by Account Holder
MONTHLY FEES
Gateway for each PSN Account eBills included for utilities Waived NA
Bank Bill Pay eSolution/eCash Solution Included NA
Mobile App Included NA
Outbound Auto -Call Messaging Included NA
Integrated Swiped Credit Card Waived NA
TRANSACTION FEES
all fees are per item; unless otherwise noted, only one fee will be charged per transaction)
eng or eSavings
Payment
Recurring ACH Gross Deposit 0.30 Paid by Account Holder
Online/Mobile/Field Gross Deposit $0.40 Paid by Account Holder
Automated Phone Gross DeDeposit $0.85 Paid by Account Holder
Text Gross Deposit $0.85 Paid by Account Holder
Live PSN Rep Gross Deposit $1.75 Paid by Account Holder
Credit Card Payments
MasterCard
VISA
Discover
AmEx"
Recurring Credit Card Gross Deposit 0.2%*+20C**+pass thru*** Paid by Account Holder
Online/Mobile/Field Gross Deposit 0.2%*+20C**+pass thru*** Paid by Account Holder
Automated Phone Gross Deposit 0. 2%*+85C* *+Pass thru*** Paid by Account Holder
Text Gross Deposit 0.2%*+85C**+pass thru*** Paid by Account Holder
Live PSN Rep Gross Deposit 0.2%*+$1.75**+pass thru*** Paid by Account Holder
Bank Bill Pay e5olution (bank -issued checks) Gross Deposit 0.10 Paid by Account Halder
BackOffice Auto -Pay Gross Deposit 0.10 Paid by Account Holder
eCash Solution Gross Deposit 0.10 Paid by Account Holder
Auto -Post Check Scanning (Check 21 or RDC) Gross Deposit 0.15 Paid by Account Holder
Advanced Integrated Credit Card Swipe Gross Deposit 0.2%*+20C**+pass thru*** Paid by Account Holder
OTHER FEES
Annual Security Compliance (billed annually) Due each December Waived Paid by Account Holder
Outbound Auto -Call Messaging Only answered calls get assessed the fee; recording
device pickups are considered answered.
15C per minute,
2 -minute minimum Paid by Account Holder
NSF (for online and phone check/savings
transactions with insufficient funds)
Please select one option. If none
selected paid by customer is the default)
35.00 Paid by Customer
9.95 Paid by Account Halder
NSF (for scanned and VPOST checks) 9.95 Paid by Account Holder
0 Chargeback (for credit cards that are disputed) 15.00 Paid by Account Holder
Basis Points=Fee charged by credit card companies/processors
Includes authorization fee by credit card company/processor and PSN's channel fee (e.g., phone)
Pass Thru=interchange fees charged by credit card companies (assures lowest fee charged by credit card company for that type of card)
Alf AmEx is less than $100, the Account Halder will be charged 2.30% plus 50C.
Net Deposits are Customer payment deposits less Transaction Fees.
Gross Deposits are Customer payment deposits including Customer paid Transaction Fees, if any.
Note: Bank interchange rates are subject to change; therefore, this quote is valid for 15 days from date of issue. 10
Payment Service Network, Inc. 12901 International Lane, Madison WI 53704 1 www.PaymentServiceNetwork.com
PAYMENT SERVICE NETWORK, INC. SERVICE AGREEMENT
SCHEDULE "B" continued
FEE SCHEDULE
Account Holder's designated depository account(s) shall mean any and all depository accounts which
Account Holder has designated in a writing delivered to PSN for PSN to make deposits of payments made
by Account Holder's Customers/Payees. Account Holder may only change designated depository
account(s) upon not less than fifteen (15) days prior written notice to PSN, provided that Account Holder
completes and timely delivers to PSN all forms required by PSN to complete the change in designated
depository account(s).
Account Holder agrees to pay the Setup/Equipment Fees set forth in this Schedule B upon execution of this
Agreement. Account Holder agrees to pay Monthly Fees set forth in this Schedule B on or about the first
day of each month. All such Setup/Equipment and Monthly Fees are non-refundable and will be
automatically withdrawn by PSN via auto debit from the Account Holder's designated depository account(s)
as set up with PSN or, at PSN's option, deducted from Customer payments before such payments are
deposited into Account Holder's designated depository account.
Account Halder agrees to pay Transaction Fees and Other Fees as designated in Schedule B. PSN shall, at
PSN's option, (a) deduct Transaction Fees and Other Fees from Customer payments before such payments
are deposited into Account Holder's designated depository account and/or (b) auto -debit from Account
Holder's depository account(s) on or around the first of every month the total of all Transaction Fees and
Other Fees incurred during the immediately preceding month which were deposited into the Account
Holder's depository account.
PSN will endeavor to have Customer payments deposited into Account Holder's designated account or
accounts within three (3) banking days of payment, however, Account Holder acknowledges that it may
take up to five (5) banking days to complete such deposits due to bank notification times and different
deposit frequencies from the credit card processors to PSN. A "banking day" is a day of the week on which
a bank or financial institution is open to the public for carrying on all of its banking functions (i.e., Monday
through Friday, excluding Saturday, Sunday and legal holidays).
PSN acknowledges and agrees that all amounts received from Customers less per item Transaction Fees
collected by PSN, and less any Monthly Fees and Other Fees (collectively, "Fees") owed by Account Holder,
will be the property of the Account Holder and PSN will have no right to retain such amounts for any
reason, including, without limitation, pursuant to any rules of bankruptcy or insolvency. PSN will function
as a repository for the net funds and not as owner of the net funds at any time (other than the Fees owed
to PSN). PSN's failure to deduct or auto -debit any Setup/Equipment Fees, Monthly Fees, Transaction Fees
or Other Fees ("Unpaid Fees") does not forfeit PSN's right to collect such Unpaid Fees from Account Holder
at a later date, and Account Holder agrees to pay such Unpaid Fees to PSN. PSN is hereby granted a security
interest in amounts received from Customers to secure payment of the Unpaid Fees, and shall have a
contractual right of offset against amounts received from Customers equal to the amount of Unpaid Fees.
ACCOUNT HOLDER:
Signature:
Print Name:
Date:
Title:
Note: Bank interchange rates are subject to change; therefore, this quote is valid for 15 days from date of issue. 1 1
Payment Service Network, Inc. 12901 International Lane, Madison WI 53704 1 www.PaymentServiceNetwork.com
PAYMENT SERVICE NETWORK, INC. SERVICE AGREEMENT
Note: Bank interchange rates are subject to change; therefore, this quote is valid for 15 days from date of issue . 1
Payment Service Network, Inc. | 2901 International Lane, Madison WI 53704 | www.PaymentServiceNetwork.com
ADDITIONAL SCHEDULE “A” TO THE PSN SERVICE AGREEMENT BETWEEN The City of Lakeville AND PSN
Date of Agreement: 11/18/2019______
Fill out sections I, II and III
I.CORPORATE OFFICE INFORMATION
Contact Name: Julie Werner Business Legal Name: The City of Lakeville MN
Address: 20195 Holyoke Avenue City, State, ZIP: Lakeville MN 55044
Telephone: 952-985-4580 Fax: 952-985-4499
Email: jwerner@lakevillemn.gov Website: www.lakevillemn.gov
II.LIST OF ADDITIONAL PROPERTIES, ACCOUNTS OR SERVICES:(Please use a separate sheet if needed or an Excel spreadsheet if possible.)
Total
Number
Potential
Payers
Service Description
or Property Name
Address
(If different from Corporate above)
(Include: Street Address, City, State, ZIP)
Tax ID
REQUIRED
Last 4 Digits of
Checking
Account
Contact Person
(for this account, if
different from above)
Email
(for this account, if
different from above)
Phone Number
(for this account, if
different from
above)
Special
Assessments
Inspections/Perm
its
Accounts
Receivable
Licensing
Miscellaneous
III.DEPOSITING AND INVOICING INSTRUCTIONS AND REQUEST FOR VOIDED CHECK(S):
•Check the box as to how you want PSN to debit its fees from your bank account(s).
☐PSN should invoice and take its fees from the same bank account(s) to which it is depositing funds
☐PSN should invoice and take its fees from a different bank account than the one to which it is depositing funds.
Last 4 digits of bank account from which PSN takes fees: _________ (please provide voided check, no deposit slips allowed)
•Attach to this Agreement, an actual voided check(s) for the bank account that PSN will deposit funds into and, if applicable, a voided check of the
account from which PSN will debit its fees. It must be a printed voided check and not a starter check, a deposit slip or other substitute. If it is not possible
to attach a voided check(s), then you can attach a letter from your bank(s) on bank letterhead that is legally signed by a ba nk representative, verifying
your checking/savings account number and the bank’s routing number. NOTE: If using more than one bank account, mark each voided check to clearly
identify which account it represents.
25,000
x
25,000
25,000
25,000
25,000
41-6005304
41-6005304
41-6005304
41-6005304
41-6005304
7738
7738
7738
7738
7738
PAYMENT SERVICE NETWORK, INC. SERVICE AGREEMENT
Note: Bank interchange rates are subject to change; therefore, this quote is valid for 15 days from date of issue. 2
Payment Service Network, Inc. | 2901 International Lane, Madison WI 53704 | www.PaymentServiceNetwork.com
•In order to debit fees from your account(s), you may have to inform your bank(s) that Payment Service Network (PSN) is an approved vendor. Once
you have signed and returned this Agreement, PSN will provide you with its official NACHA vendor number to provide to your bank(s).
PAYMENT SERVICE NETWORK, INC. SERVICE AGREEMENT
Note: Bank interchange rates are subject to change; therefore, this quote is valid for 15 days from date of issue. 3
Payment Service Network, Inc. | 2901 International Lane, Madison WI 53704 | www.PaymentServiceNetwork.com
ADDITIONAL SCHEDULE “B” TO THE PSN SERVICE AGREEMENT BETWEEN The City of Lakeville
Account AND PSN (FEE SCHEDULE FOR Non-Utility Accounts)
The items marked with an “X” are applicable to this Agreement.
SETUP/EQUIPMENT FEES
☒ One-time Setup Waived NA
☒ Web Customization Basic Waived NA
☒ Mobile App Standard Waived NA
☒ Training Included NA
☐ Software Integration NA
☐ Custom Programming $ NA
☐ Swipe Credit Card Setup $ NA
☐ Check Scanning Equipment $ NA
☐ Credit Card Swipe Machine $ NA
MONTHLY FEES
☒ Gateway for each PSN Account Waived NA
☐ Bank Bill Pay eSolution/eCash Solution $ NA
☒ Mobile App Included NA
☐ Custom IVR $ NA
☒ Swiped Credit Card Terminal Waived NA
TRANSACTION FEES
(all fees are per item; unless otherwise noted, only one fee will be charged per transaction)
☒ eChecking or eSavings
Payment
☒ Online/Mobile/Field Net Deposit $1.00 Paid by Customer
☒ Automated Phone Net Deposit $1.00 Paid by Customer
☒ Text Net Deposit $1.00 Paid by Customer
☒ Live PSN Rep Net Deposit $1.00 Paid by Customer
☒
Credit Card Payments
☐MasterCard ☐VISA
☐Discover
☐AMEX^
☒ Online/Mobile/Field Net Deposit 2.75%* Paid by Customer
☒ Automated Phone Net Deposit 2.75%* Paid by Customer
☒ Text Net Deposit 2.75%* Paid by Customer
☒ Live PSN Rep Net Deposit 2.75%* Paid by Customer
Rates for AMEX (above rates are for all other credit cards) NA
☐ Bank Bill Pay eSolution (bank-issued checks) NA $ NA
☐ BackOffice Auto-Pay NA $ NA
☐ eCash Solution NA $ NA
☐ Auto-Post Check Scanning (Check 21 or RDC) NA $ NA
☒ Standard Credit Card Swipe Net Deposit 2.75%* Paid by Customer
OTHER FEES
☒ Annual Security Compliance (billed annually) waived NA
☐ Outbound Auto-Call Messaging
Only answered calls get
assessed the fee; recording
device pickups are
considered answered.
15¢ per minute,
2-minute minimum NA
☒ NSF (for online and phone check/savings transactions
with insufficient funds) $35.00 Paid by Customer
☐ NSF (for scanned and VPOST checks) NA
☒ Chargeback (for credit cards that are disputed) $15.00 Paid by Account Holder
*If payment is less than $100, the Customer will be charged 2.75% plus 50¢.
Net Deposits are Customer payment deposits less Transaction Fees.
Gross Deposits are Customer payment deposits including Customer paid Transaction Fees, if any.
PAYMENT SERVICE NETWORK, INC. SERVICE AGREEMENT
Note: Bank interchange rates are subject to change; therefore, this quote is valid for 15 days from date of issue. 4
Payment Service Network, Inc. | 2901 International Lane, Madison WI 53704 | www.PaymentServiceNetwork.com
Net Deposits are Customer payment deposits less Transaction Fees.
Gross Deposits are Customer payment deposits including Customer paid Transaction Fees, if any.
SCHEDULE “B” continued
FEE SCHEDULE
Account Holder’s designated depository account(s) shall mean any and all depository accounts which Account
Holder has designated in a writing delivered to PSN for PSN to make deposits of payments made by Account
Holder’s Customers/Payees. Account Holder may only change designated depository account(s) upon not less
than fifteen(15) days prior written notice to PSN, provided that Account Holder completesand timely delivers
to PSN all forms required by PSN to complete the change in designated depository account(s).
Account Holder agrees to pay the Setup/Equipment Fees set forth in this Schedule B upon execution of this
Agreement. Account Holder agrees to pay Monthly Fees set forth in this Schedule B on or about the first day of
each month. All such Setup/Equipment and Monthly Fees are non-refundable and will be automatically
withdrawn by PSN via auto debit from the Account Holder’s designated depository account(s) as set up with
PSN or, at PSN’s option, deducted from Customer payments before such payments are deposited into Account
Holder’s designated depository account.
Account Holder agrees to pay Transaction Fees and Other Fees as designated in Schedule B. PSN shall, at PSN’s
option, (a) deduct Transaction Fees and Other Fees from Customer payments before such payments are
deposited into Account Holder’s designated depository account and/or (b) auto-debit from Account Holder’s
depository account(s) on or around the first of every month the total of all Transaction Fees and Other Fees
incurred during the immediately preceding month which were deposited into the Account Holder’s depository
account.
PSN will endeavor to have Customer payments deposited into Account Holder’s designated account or accounts
within three (3) banking days of payment, however, Account Holder acknowledges that it may take up to five
(5)banking days to complete such deposits due to bank notification times and different deposit frequencies
from the credit card processors to PSN. A “banking day” is a day of the week on which a bank or financial
institution is open to the public for carrying on all of its banking functions (i.e., Monday through Friday, excluding
Saturday, Sunday and legal holidays).
PSN acknowledges and agrees that all amounts received from Customers less per item Transaction Fees
collected by PSN, and less any Monthly Fees and Other Fees (collectively, “Fees”) owed by Account Holder, will
be the property of the Account Holder and PSN will have no right to retain such amounts for any reason,
including, without limitation, pursuant to any rules of bankruptcy or insolvency. PSN will function as a
repository for the net funds and not as owner of the net funds at any time (other than the Fees owed to PSN).
PSN’s failure to deduct or auto-debit any Setup/Equipment Fees, Monthly Fees, Transaction Fees or Other
Fees (“Unpaid Fees”) does not forfeit PSN’s right to collect such Unpaid Fees from Account Holder at a later
date, and Account Holder agrees to pay such Unpaid Fees to PSN.PSN is hereby granted a security interest in
amounts received from Customers to secure payment of the Unpaid Fees, and shall have a contractual right of
offset against amounts received from Customers equal to the amount of Unpaid Fees.
ACCOUNT HOLDER:
Signature: Date:
Print Name: Title: