office of the state treasurer (ost) merchant bankcard
TRANSCRIPT
OST RFP: BC-2019-01 Page 1 November 21, 2019
Office of the State Treasurer (OST) MERCHANT BANKCARD SERVICES
RFP BC2019-01
Offeror’s Questions and Responses
November 21, 2019
1) 2.2.1. PROCESSING FOR MULTIPLE CARD ASSOCIATIONS AND BRANDS, C. The selected Vendor
must have the ability to support EBT payments.
Question: Can the state clarify “the ability to support EBT payments”? Does this mean to be
able to accept at the POS, route and obtain authorization?
Response: The vendor must be able to support the ability to accept EBT at Point of Sale
within state agency offices, and authorize and settle those transactions. Currently there
is only one agency (WSDOT Tolling) and one participating College (Washington State
University’s Global Market) accepting the EBT card.
2) 2.2.4. GOVERNMENT SERVICE FEE, B. The state has multiple agencies assessing a fee under the
card associations “Government Service Fee” program(s). Please describe how you would
support these Agencies under the scenarios below. Assume for each scenario the Agency is
collecting the fee both for in-person and for internet processing. For each, include how many
Merchant IDs would be required per location. If you cannot support a scenario, please provide
what your alternative would be.
Question: Can the state identify the agencies that are enrolled in the “Government Service Fee”
program(s)?
Response: Our current acquirer has registered the following agencies with the
appropriate card associations to assess the Government Service Fee:
Department of Agriculture
Department of Ecology
Department of Health
Department of Licensing
Department of Labor and Industries
Department of Revenue
Employment Security Department
OST RFP: BC-2019-01 Page 2 November 21, 2019
Utilities and Transportation Commission
3) Exhibit B Volumes
Question: Can the state identify the agencies that are enrolled in the “Government Service Fee”
program(s) as well as break out the fee volumes similar to wat is referenced in Row 33 for L&I
“Internet w/svc fee”?
Response: Department of Agriculture – Charges fee on all transactions listed Department of Ecology – Charges fee on all transactions listed Department of Health– Charges fee on most transactions listed. Not included are their in-person processing, which is a minimal amount of transaction. Below is a listing of their October 2019 transaction for reference:
Department of Licensing – In Person Processing (VitalChek) assesses the fee
Department of Labor and Industries – Internet w/svc fee
Department of Revenue – Charges fee on all transactions listed
Employment Security Department – Charges fee on all transactions listed
Utilities and Transportation Commission – Charges fee on all transactions listed
4) 2.2.6. INTERNET PROCESSING, C. 3rd Party Processors
Question: Does the OST plan on replacing the existing Processor’s and/or Gateways (i.e., CyberSource, Payeezy, Authorize.net, FirstData PayPoint, Official Payments/ACI) with one vendor?
Response: State agencies have chosen processors for a variety of reasons. Some have purchased software or solutions that was certified to a specific processor and our current vendor was able to support that option. Some agencies had specific requirements like compatibility with restrictive card association rules surrounding either the Tax Fee program, the various convenience fee programs or most recently the Government Service Fee programs. The state must always take into consideration the effort required for conversion to new system(s) as well as the benefit of having a uniform processor across multiple agencies.
There is not a common back end system in use across state agencies. Each is responsible for their own IT infrastructure with requirements that are often different than similar agencies.
5) 5.5. PROCUREMENT INSTRUCTIONS, 5.5.1 Submitting Responses
MasterCard Visa Discover Debit Card Total
Agency Transactions Amount Transactions Amount TransactionsAmount Transactions Amount Transactions Amount
Department of Health - No Service Fee 237 10,825 894 49,969 12 826 887 55,556 2,030 117,176
Department of Health - With Service Fee 4,716 642,875 18,876 2,695,396 36 3,384 0 0 23,628 3,341,655
OST RFP: BC-2019-01 Page 3 November 21, 2019
Question: To confirm, electronic copy of proposal is to be emailed to
[email protected] by 4:00 PM PT on December 6, 2019 and the 3 hard copies are due
by 4:00 PM PT on December 9, 2019 to:
OFFICE OF THE STATE TREASURER
ATTN: JEN MERCHANT, RFP Coordinator
Office of the State Treasurer
416 Sid Snyder Ave SW, Room 230
PO Box 40200
Olympia WA 98501-0200
Response: Yes, electronic copies are due by 4:00 PM PT December 6, 2019 and 3 hard copies are due by 4:00 PM PT December 9, 2019.
6) Question: What is the “Commodity Code” for the RFP that a Vendor uses for Vendor
Registration?
Response: The state’s default Merchant Category Code (MCC) is 9399. In certain circumstances, we have been required to use other MCCs. For example, our Department of Transportation was required by the card associations to switch from 9399 to MCCs in the Transportation Services category (MCCs 4000-4799) as appropriate. This includes 4111 for State Ferries and 4784 for WSDOT Tolling.
7) 2.2.9. INTERNET CHECK (ACH DEBIT) PROCESSING The State of Washington has multiple
Agencies who prefer to have one common processing option for both their bankcard and ACH
processing. Because of State law regarding the protection of public funds, all our ACH is
processed through the state’s concentration bank, currently US Bank. OST has the need for a
processor who can produce this NACHA formatted ACH file and forward it on to the Office of the
State Treasurer for further processing at our concentration bank.
Question: In reading this requirement it sounds as if the OST is looking to maintain their current process in place with US Bank for their bankcard and ACH processing because of State law; a) Is this process going to stay in place for some Agencies therefore it wouldn’t be a requirement for them and only other Agencies would still need the bankcard and ACH processing option with a new vendor and b) will ACH processing through other banks be allowed for the other Agencies?
Response: We need any solution that provides Internet ACH processing to produce a properly formatted ACH file and send it to the Office of the State Treasurer for further processing by our concentration bank (Currently US Bank.)
8) RFP Section Number 2.2.4.B.i. page 8
Question: What solution (software, terminal, etc.) is used for this service fee scenario?
Response: First Data’s PayPoint Gateway is the current solution.
9) RFP Section Number 2.2.4.B.iii. page 8
OST RFP: BC-2019-01 Page 4 November 21, 2019
Question: What solution (software, terminal, etc.) is used for this service fee scenario?
Response: First Data’s PayPoint Gateway is the current solution.
10) RFP Section Number 2.2.4.B.v.i. page 8
Question: If the 3rd party vendor is charged the fee, is it acceptable to them to pay fees that
have been negotiated by the State? Or do they have their own processing arrangement where
they have negotiated fees to determine the appropriate service fee they wish to charge?
Response: Each agency has negotiated a separate agreement with the processor(s) to determine the Service Fee Charged and any additional processing fees. From our acquirer’s perspective, the merchant account(s) is still owned by the state agency and the fees are covered under the master contract for Merchant Bankcard Services.
11) RFP Section Number 2.2.5.B page 9
Question: How many Clover stations does the State have? Are they leased or owned by the
State?
Response: Currently Four Agencies/Colleges have the Clover Stations.
12) RFP Section Number 2.2.5.C.v. page 11
Question: If the current gateway can continue to be used, do the PINPads need to be re-injected
with new encryption keys? It appears that they do not but we wanted to confirm.
Response: These terminals are currently setup to use the LexisNexis Gateway that authorizes and settles through First Data’s Nashville Rapid Connect. If any of this changes, then new encryption keys would need to be injected.
13) RFP Section Number 2.2.6.c page 14
Question: Is it the intention of the State to retain ACI or are you looking for alternatives?
Response: The answer to this is highly dependent on the responses received and each agency’s need. Retention of ACI is a “nice to have” because of the time and cost of conversion, but the state would like to have a service like this as part of our Merchant Bankcard Services agreement for new processes.
14) RFP Section Number 3.1.2.D page 23
Question: This item (sic) requires settlement within 48 hours. Since funding cannot occur on
weekends, we typically state that funding would be within two business days. We assume this is
the State’s intent but wanted to confirm.
OST RFP: BC-2019-01 Page 5 November 21, 2019
Response: Yes, the State’s intent was for settlement to occur within two banking days.
15) BC2019-01ExhibitB Volumes.xlsx
Question: For each in-scope department / agency / application, please indicate the:
a. Estimated number (#) of transactions per year by Credit/Debit Card
b. Estimated value ($) of transactions per year by Credit/Debit Card
c. Estimated number (#) of transactions per year by ACH
d. Estimated number ($) of transactions per year by ACH
Response: a. in the YTD 2019, 2018, 2017 and 2016 tabs, Column L has the total transactions.
Column J is just PIN Debit transactions.
b. in the YTD 2019, 2018, 2017 and 2016 tabs, Column M has the total net sales.
Column K is just PIN Debit transactions.
c. See worksheet posted below for FY 2019*
d. See worksheet posted below for FY 2019*
*Note, currently the TOLL file is NOT being produced by our current vendor. We are in a project to have our vendor produce this file for us with a go live in 2020. These numbers are included to give potential vendors an idea of the future anticipated volume. In addition, Employment Security Department just started their new Paid Family Medical Leave program in June 2019, so these numbers are not reflected below. For that program since June, they have had approximately 90,000 transactions processed as ACH transactions.
OST RFP: BC-2019-01 Page 6 November 21, 2019
Department of Health = files DOHOP and DOHP
Ecology = ECY1
Department of Transportation Tolling = TOLL
$10,815,587.86 sales
491,140 transactions
$24,206.00 reunds257 transactions
State of Washington
Date: 11/18/2019
Time: 8:42 am Transaction Settlement ReportFiscal Year 2019 - By Effective Date
DEBITS
Jul-2018 Aug-2018 Sep-2018 Oct-2018 Nov-2018 Dec-2018
0.00 1,038.00 402.00
TotalJan-2019 Feb-2019 Mar-2019 Apr-2019 May-2019 Jun-2019
DOHOP 0.00 205.20 0.00 0.00 0.00 857.00 1,133.25 6,994.50 442.60 $11,072.55
0 2 0 0 0 0 1 1 4 1 3 2 14
DOHP 126,822.00 145,960.00 123,887.50 146,315.00 155,276.50 121,665.50 166,115.00 136,402.00 134,184.50 176,826.00 153,036.50 138,628.50 $1,725,119.00
1,836 2,004 1,798 1,932 2,138 1,726
32,911.00 31,346.45
23,7682,196 1,884 1,930 2,292 2,130 1,902
ECY1 105,672.20 53,788.00 58,289.00 47,884.00 33,689.66 28,255.19 71,846.99 47,145.00 62,748.00 122,340.00 $695,915.49
1,678988 302 318 260 187 108
0.00 0.00 0.00
CREDITS
4,692153 112 139 169 278
DOHOP 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $0.00
0 0 0 0 0 0 0 0 0 0 0 0 0
DOHP 326.00 245.00 860.50 854.50 1,482.00 1,168.50 6,284.50 72.50 245.00 353.00 304.50 866.50 $13,062.50
4 4 6 6 16 18
0.00 0.00
13458 2 4 4 6 6
ECY1 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $0.00
0 0 0 0 0 0
5 123
00 0 0 0 0 0
5 15 13 6 5 1
298.00 59.30 49.65 89.90 $11,143.50
16 12 8 22 15
462,666
TOLL 426.75 180.00 1,012.65 516.60 664.75 124.50 519.50 7,201.90
695,276.26 $8,383,480.82
38,487 36,538 38,333 32,657 35,200 37,744 37,107 37,777
648,397.30 649,636.50 565,510.83 638,769.65 710,864.39 685,740.27TOLL 750,781.16 833,717.02 733,348.55 755,732.75 715,706.14
42,632 44,435 40,500 41,256
OST RFP: BC-2019-01 Page 7 November 21, 2019
16) BC2019-01ExhibitB Volumes.xlsx
Question: For each in-scope department / agency / application, please indicate the estimated
number (#) of POS workstations / devices.
Response: Below is a listing of existing Point of Sales devices by agency:
Agriculture 1 FD130
Admin for the Courts
Board of Accountancy
Statute Law Committee(Code Revisor) 1 FD130
Corrections
Criminal Justice Training Commission
Dept of Early Learning
Dept of Ecology
Department of Enterprise Services 2 BridgePay
Dept of Financial Institutions
Dept of Health
Dept of Licensing 1127 LexisNexis
Department of Natural Resources
Dept of Revenue
Dept of Social and Health Services
Employment Security Department
Eastern WA Historical Society 2 FD130/Clover
Fish and Wildlife 8 FD130
Gambling Commission
Historical Society 1 Vx570
Legislative Gift Center 3 FD130
Labor and Industries
Office of Insurance Commissioner
OMWBE
Office of the Supr of Pub Ins (OSPI)
Parks and Recreation Commission-11
Parks APS
Parks EA 4 FD130/Clover
Parks EA CRS
Parks HQ 3 FD130/FD400ti
Parks NW 6
Parks NW CRS FD130
Parks Rsrv CRS
Parks Wireless 42 FD400GT
OST RFP: BC-2019-01 Page 8 November 21, 2019
Parks SMS
Parks SW 10 FD130/Clover
Parks SW CRS
Pollution Liability Insurance Agency
Secretary of State
Utilities and Transportation Commission 2 Vx570
Veterans Affairs 5 FD130
Dept of Transportation (WSDOT) FD130
Liquor and Cannabis Board
Washington State Patrol
Universities
University of Washington
Eastern WA University 14 FD130/FD400GT
Western WA University 4 T7PLUS
512/T4210
Washington State University 48 FD130/T4220
State Board for Community and Technical Colleges -27
Grays Harbor College
Highline 1 FD130
Green River
Renton Tech
South Puget Sound
Shoreline
Bellevue
Bellingham Tech 3 FD130
Skagit Valley College
Tacoma
Walla Walla
Whatcom
Olympic College
Pierce College
Wenatchee Valley College 2 FD130
Centralia College 6 FD130
Everett 3 FD130
Seattle 7 FD130/CloverS
OST RFP: BC-2019-01 Page 9 November 21, 2019
Community Colleges of Spokane 15 FD130
Edmonds
Bates Tech
Clark College
Lower Columbia College
Lake Washington Institute of Technology 2 FD130
Big Bend Community College
Clover Park Technical College
Cascadia Community College
17) BC2019-01ExhibitB Volumes.xlsx AND 2.2.4 AND BC2019-01ExhibitD Fee Schedule xlsx
Question: For each in-scope department / agency / application, please indicate the target-
funding model:
a. No payer-paid Government Service Fee is applied. RFP-Vendor’s solution is State/Agency-
funded (a.k.a. “absorbed”) in an interchange pass through model with the RFP-Vendor being
funded by fees to be identified in BC2019-01ExhibitD Fee Schedule.xlsx charged to the
State/Agency.
b. Payer-paid Government Service Fee is applied and retained by the Vendor in a Managed
Model under which the State/Agency bears no processing expenses (2.2.4-B-i).
c. Payer-paid Government Service Fee is applied and retained by the Agency. RFP-Vendor’s
solution is State/Agency-funded (a.k.a. “absorbed”) in an interchange pass through model
with the RFP-Vendor being funded by fees to be identified in BC2019-01ExhibitD Fee
Schedule.xlxs charged to the State/Agency. (2.2.4-B-ii).
d. Payer-paid Government Service Fee is applied and retained by the Agency’s existing 3rd Party
Vendor. RFP-Vendor’s solution is State/Agency-funded (a.k.a. “absorbed”) in an interchange
pass through model with the RFP-Vendor being funded by fees to be identified in BC2019-
01ExhibitD Fee Schedule.xlxs charged to the State/Agency. (2.2.4-B-iv).
Response: a. Our contract does not support this option currently. Reference RFP section 2.2.4Bi.
b. On YTD 2019 Tab, Row 4 (Dept of Agriculture), Row 17 (Dept of Health) and Row 25
(Employment Security). reference RFP section 2.2.4Bii
c. Department of Licensing’s Professional License System just went live with this model
in Nov 2019. This was facilitated by a change in VISA’s rules that allowed it. No
volumes available yet. Reference RFP section 2.2.4Biii.
d. On YTD 2019 tab: row 21 (Dept of Revenue), row 33 (Labor and Industries), row 20
(Dept. of Licensing) and row 50 (Utilities and Transportation Commission).
Reference RFP section 2.2.4Biv
18) 2.2.5 page 10
Question: Does Chas Footprint POS interface to a gateway for authorization/settlement?
OST RFP: BC-2019-01 Page 10 November 21, 2019
Response: Currently First Data Nashville Rapid Connect.
19) 2.2.5 Page 11
Question: Does LexisNexis Gateway interface to a middleware/gateway for
authorization/settlement?
Response: LexisNexis Gateway on Nashville Rapid Connect.
20) 2.2.2 page 7
Question: Debits to OST for fees are not permitted. Can the provider debit Agencies separately
for their related fees?
Response: Most banking for state agencies is managed by the Office of the State Treasurer and most settlements are to the state’s concentration or concentration subsidiary account(s). By default, we require fees to be invoiced. In the case of those agencies and colleges who might have settlement to an account outside the Treasury we can leave it to those agencies and colleges whether they would like to allow a debit for fees.
21) Page 5 – Section II – Statement of Work 2.1 B – The state’s four (4) year Colleges and
Universities are responsible for their own banking agreements, including those for Merchant
Bankcard Services.
Question: Will those four-year Colleges and Universities have the option to participate under
the State of Washington Master Agreement?
Response: Yes, the 4 Year Colleges and Universities have the option to participate. This is voluntary for them, which is why the summary page of the volumes shows the overall total with those currently participating and without.
22) Page 8 - Section 2.2.5. Stand Alone Equipment
Question: Please provide a description of Code Reviser and how this solution is being used.
What payment gateway is being used with this solution?
Response: The Code Reviser is an Agency within the State that deals with laws and
amendments for the State of Washington. Code Reviser uses an in-person terminal to
accept payments for publications.
23) Page 10 – Section 2.2.5. Front of House Equipment to Backend Processing Server(s)
Question: Please confirm which payment gateway is being used in conjunction with Ventek for
DES Parking kiosk.
OST RFP: BC-2019-01 Page 11 November 21, 2019
Response: Ventek Car Gateway to Rapid Connect on First Data’s Nashville platform.
24) Page 10 – Section 2.2.5. Front of House Equipment to Backend Processing Server(s)
Question: Please confirm which payment gateway is being used in conjunction with Cash
Footprint POS for DES Surplus.
Response: Bridgepay to FDC Nashville
25) Page 12 – Section 2.2.6 Hosted Payment Page
Question: Are any of the agencies looking to replace CyberSource or First Data PayPoint?
a. How are these solutions being used today? Card present and card not present
transactions? e-Commerce?
Response: The answer to this is highly dependent on the responses received and each agency’s need. Retention of current processors is a “nice to have” because of the time and cost of conversion, but we will evaluate responses on how they can provide equal services like we have today along with any enhancements that might be offered. a. For a Hosted Payment environment, these are all card not present transactions, mostly
e-Commerce. There are a few circumstances where an agency might use the back-office
functionality of the processor(s) to manually key enter a transaction, usually from a
phone call.
26) Page 7 – Section 2.2.4 Government Service Fee
Question: Please confirm if the state is looking to pass a service fee in both a card present and
card not present environments.
a. Do you currently reconcile the service fee, or do you have a processor managed
program in place?
b. If currently processing a service fee in a card present environment, can you describe the
current hardware / software, along with agency that is accepting?
Response: Yes, we have agencies currently passing the Government Service Fee in both card present and card not present environments and will expect our vendor to support both. a. Both:
i. (see RFP section 2.2.4Bii) – Agriculture, Dept of Health, Dept of Licensing’s
Professional Licenses and Employment Security Department all have the service
fee settled to them and reconcile themselves
ii. (see RFP section 2.2.4Biv) – Dept of Revenue, Labor and Industries and Utilities
and Transportation Commission all have a 3rd party (ACI) who receives and
reconciles the service fee for these agencies.
b. see RFP 2.2.5 c iv for Department of Licensing’s Vitalcheck process.
OST RFP: BC-2019-01 Page 12 November 21, 2019
27) Page 15 – Section 2.2.6 Internet Processing
Question: Please advise which versions of PeopleSoft, SalesForce, and Microsoft Dynamics are
currently in use.
Response: Our Community and Technical College system are currently in a process to convert their backend system(s) to Peoplesoft: FSCM 9.2, HCM 9.2, and CS 9.2.
We currently have no agencies taking bankcards using SalesForce, but there has been interest in Salesforce Commerce Cloud (unified B2B and B2C).
We have one agency using Microsoft Dynamics 365 for Finance and Operations, Enterprise v7.3, in conjunction with a hosted payment processor.
28) Page 11 – 2.2.6 Hosted Payment Page
Question: Can you describe the current need for tokenization if in a hosted payment
environment? Is there a current agency that is leveraging a solution like this now?
Response: Currently there is no agency doing this. Department of Transportation has a need for tokenization, but they use an api to pass transactions.
29) Page 11 – 2.2.6 Hosted Payment Page
Question: Does the processing platform provide tokenization for those Agencies with recurring
transactions?
Response: Currently there is no agency doing this. Department of Transportation has a need for tokenization, but they use an api to pass transactions.
30) Page 5 – Section 1.2 Authority
Question: Would OST consider awarding the merchant bankcard contract to multiple bidders
and allowing the agencies to choose their preferred service provider? This approach is
becoming more common for bankcard processing services because it allows state governments
to leverage statewide buying power while offering participating agencies the flexibility to choose
the provider that can best meet their needs.
Response: Not under this procurement.
31) Page 32 – Section 5.5.2 Transition Plan
Question: Does the State’s current processing agreement allow for transition time past the
contract end date of June 30, 2020, to allow for conversion to a new system?
OST RFP: BC-2019-01 Page 13 November 21, 2019
Response: If necessary, the current agreement could be amended to allow further transition time.
32) Page 27 – Section 5.3 Schedule of Procurement Activities
Question: Due to the size and complexity of this Merchant Bankcard Services RFP, would the
State consider extending the Offeror’s Proposal Due Date beyond December 6, 2019, to allow
Offeror’s more time to provide the State with a thorough response that fully addresses each of
the requirements?
Response: The State needs to receive proposals by December 6, 2019 in order to select the Apparently Successful Offeror before the end of the year. The current contract expires in July 2019 and we need time to negotiate the contract and have time to transition to a new vendor, if necessary, before July 2019. Offeror’s proposals are due to OST by 4:00PM PT December 6, 2019 as published in the RFP. Please refer to Section 5.5.1 for complete details.
33) Regarding 2.2.1.c
Question: How may locations accept EBT?
Response: The vendor must be able to support the ability to accept EBT at Point of Sale within state agency offices, and authorize and settle those transactions. Currently there is only one agency (WSDOT Tolling) and one participating College (Washington State University’s Global Market) accepting the EBT card. Total of 4 locations.
34) Regarding 2.2.5.a
Question: Will the state consider lease terms tied to the initial term of the agreement?
Response: We will consider all options a responder puts forth.
35) Regarding 2.2.13, of the 1104 MIDs
Question: How many fall under each PCI level 3 & 4?
Response: We have the following list by agency. Approximately 60% of the individual MIDs will be under agencies/colleges at level 3 or 4:
Agency Name PCI
Ievel
Dept of Licensing 2
WSDOT-Tolling - SAQ-D 2
WSDOT-Ferries 2
WSLCB - SAQ-AEP 3
OST RFP: BC-2019-01 Page 14 November 21, 2019
Dept of Revenue 3
Fish & Wildlife -SAQ-D 3
Dept of Labor & Industries 3
Office of Insurance Commissionioner- SAQ-A-EP 3
Office of the Superintendent of Public Instruction - SAQ-A 3
Dept of Agriculture -SAQ-BIP 4
Admin Office of the Courts - SAQ-A 4
WA Board of Accountancy - SAQ-AEP 4
Code Revisers Office - SAQ-D 4
Correctional Industries - SAQ-AEP 4
Criminal Justice - SAQ-A 4
Dept of Early Learning - SAQ-A 4
Dept. of Ecology - SAQ-A 4
Dept of Enterprise Services - SAQ-D 4
Dept of Financial Institutions -SAQ-A 4
Dept of Health - SAQ-D 4
Dept of Social & Health Services -SAQ-A 4
Employment Security Dept. - SAQ-A 4
Gambling Commission - SAQ-AEP 4
Guaranteed Education Tuition- SAQ-D 4
Historical Society - SAQ-D 4
Legislative Gift Center - SAQ-D 4
WA State Parks - SAQ-D 3
Secretary of State -SAQ-D 3
Utilities & Transportation Commission - SAQ-A 4
Veteran's Affairs - SAQ-BIP 4
WA State Patrol - SAQ-D 4
Participants Name
Washington State University 2
Western Washington University 3
Eastern Washington University 4
University of WA 4
Community College Name
Grays Harbor College - SAQ-AEP 4
Highline Community College- SAQ-D 4
Green River Community College- SAQ-AEP 4
Renton Technical College- SAQ-A 4
South Puget Sound Community College- SAQ-AEP 4
Shoreline Community College- SAQ-A 4
OST RFP: BC-2019-01 Page 15 November 21, 2019
Bellevue Community College- SAQ-D 3
Bellingham Technical College- SAQ-D 4
Skagit Valley College- SAQ-AEP 4
Tacoma Community College- SAQ-AEP 4
Walla Walla Community College- SAQ-A 4
Whatcom Community College- SAQ-D 4
Olympic College- SAQ-D 4
Pierce College- SAQ-AEP 4
Wenatchee Valley College- SAQ-D 4
Centralia College- SAQ-D 4
Everett Community College- SAQ-D 4
Seattle Community College- SAQ-D 4
Community Colleges of Spokane- SAQ-D 4
Edmonds Community College- SAQ-AEP 4
Bates College- SAQ-AEP 4
Clark College- SAQ-D 4
Lower Columbia College- SAQ-D 4
Lake Washington Institute of Technology- SAQ-D 4
Big Bend Community College- SAQ-AEP 4
Clover Park Technical College- SAQ-AEP 4
Cascadia College- SAQ-AEP 4
WA SBCTC- SAQ-A 4
36) Question: Regarding Exhibit B, for the locations assessing a service fee can you share the annual
volume processed by credit card, ACH, and check? As well as the annual numbers of credit card
payments, ACH, and check payments?
Response: For credit cards, please see RFP Exhibit B(volumes):
a. On YTD 2019 Tab, Row 4 (Dept of Agriculture), Row 17 (Dept of Health) and Row
25 (Employment Security). reference RFP section 2.2.4Bii
b. Department of Licensing’s Professional License System just went live with this
model in Nov 2019. This was facilitated by a change in VISA’s rules that allowed
it. No volumes available yet. Reference RFP section 2.2.4Biii.
c. On YTD 2019 tab: row 21 (Dept of Revenue),row 33 (Labor and Industries) and
row 50 (Utilities and Transportation Commission). Reference RFP section
2.2.4Biv
For ACH please see the answer to question 15 above that has ACH volumes
OST RFP: BC-2019-01 Page 16 November 21, 2019
37) Question: Is the State looking to consolidate and utilize a single payment processor?
Response: Only if that single payment processor can support the requirements outlined in the RFP. It was not our intent to only require a single processing option, since we have not yet seen a processor that can do everything for every agency’s specific business need.
38) 2.2.6 C. and 2.2.8
Question: Please clarify the differences between 3rd Party Processors and 3rd Party Vendors, and
if possible provide example of 3rd Party Vendor agencies might use.
Response: Under our current agreement, a 3rd party processor is a transaction
processing option that is not included under our agreement, but is able to use Merchant
IDs issued by our acquirer and authorize and settle transactions with our acquirer.
Current examples include ACI, CyberSource Enterprise and Authorize.net.
A 3rd Party vendor is usually a software or service provider that is being used by the
agency to build a new system. Often these new systems have a card processing
component and may even use a 3rd party processor. We need to know what your
requirements are when our provider is touching card data at any point in the
transaction.
39) 2.2.8 B – As described in this scenario, where a 3rd party is certified to their own processor
Question: Please provide clarification that the 3rd party is not referring to the bank card
partner/settlement bank of the processor.
Response: A 3rd Party vendor is usually a software or service provider that is being used by the agency to build a new system. Often these new systems have a card processing component and may even use a 3rd party processor. We need to know what your requirements are when our provider is touching card data at any point in the transaction.
40) 1)A – Vendor must have the knowledge and expertise to advise the State on any changes to law
or card associated rules that would affect our ability to charge the Government Service Fee.
Questions: Can we request to change language to the below as there are no laws made by the Cardbrands?
i. Vendor must have the knowledge and expertise to advise the State on any changes to
Regulations or card association rules that would affect our ability to charge the
Government Service Fee.
Response: This can be negotiate language. We do however rely upon our partners if there is any change in law, regulations and/or card association rules that could affect our ability to charge a service fee.
OST RFP: BC-2019-01 Page 17 November 21, 2019
41) RE 2.2.4 – For the “Managed” Convenience Fee Section
42) Questions:
a. Could OST supply the volumes processed for each vendor?
b. Could OST supply merchant statements showing interchange for each vendor?
c. Is AMEX (American Express) being utilized for the Managed Convenience Fee today with
each vendor?
Response: a. See RFP Exhibit B:On YTD 2019 tab: row 21 (Dept of Revenue),row 33 (Labor and
Industries), row 20 (Dept of Licensing) and row 50 (Utilities and Transportation
Commission). Reference RFP section 2.2.4Biv
b. Because the Merchant Accounts are setup under the state’s master contract, that
contract pricing is applied. All interchange and assessments are pass through from
the card associations and are based on card type presented. Statements are bases
on Merchant ID, so it would be a large project to produce the approximate 2000
pages+ of statements for these just for one month.
c. Yes, American Express is being used. Amex is 2.15% per our agreement with
American Express.
43) RE page 11 – For the DOL
Question: Please identify the 800+ Ingenico make/model.
Response: The information provided in the RFP was out of date. Dept. of Licensing now have 1127 Verifone Vx805 terminal that replaced the Ingenico equipment. These connect to the LexisNexis Gateway and authorize and settle through First Data’s Nashville Rapid Connect.
44) Page 9 – RE 2.2.5 A
Question: For the agencies and colleges with stand alone terminals, please identify the stand
alone hardware used for each agency and college identified under 2.2.5 A.
Response:
Agriculture 1 FD130
Admin for the Courts
Board of Accountancy
Statute Law Committee(Code Revisor) 1 FD130
Corrections
Criminal Justice Training Commission
Dept of Early Learning
Dept of Ecology
OST RFP: BC-2019-01 Page 18 November 21, 2019
Department of Enterprise Services 2 BridgePay
Dept of Financial Institutions
Dept of Health
Dept of Licensing 1127 LexisNexis
Department of Natural Resources
Dept of Revenue
Dept of Social and Health Services
Employment Security Department
Eastern WA Historical Society 2 FD130/Clover
Fish and Wildlife 8 FD130
Gambling Commission
Historical Society 1 Vx570
Legislative Gift Center 3 FD130
Labor and Industries
Office of Insurance Commissioner
OMWBE
Office of the Supr of Pub Ins (OSPI)
Parks and Recreation Commission-11
Parks APS
Parks EA 4 FD130/Clover
Parks EA CRS
Parks HQ 3 FD130/FD400ti
Parks NW 6
Parks NW CRS FD130
Parks Rsrv CRS
Parks Wireless 42 FD400GT
Parks SMS
Parks SW 10 FD130/Clover
Parks SW CRS
Pollution Liability Insurance Agency
Secretary of State
Utilities and Transportation Commission 2 Vx570
Veterans Affairs 5 FD130
Dept of Transportation (WSDOT) FD130
Liquor and Cannibis Board
Washington State Patrol
OST RFP: BC-2019-01 Page 19 November 21, 2019
Universities
University of Washington
Eastern WA University 14 FD130/FD400GT
Western WA University 4 T7PLUS
512/T4210
Washington State University 48 FD130/T4220
State Board for Community and Technical Colleges -27
Grays Harbor College
Highline 1 FD130
Green River
Renton Tech
South Puget Sound
Shoreline
Bellevue
Bellingham Tech 3 FD130
Skagit Valley College
Tacoma
Walla Walla
Whatcom
Olympic College
Pierce College
Wenatchee Valley College 2 FD130
Centralia College 6 FD130
Everett 3 FD130
Seattle 7 FD130/CloverS
Community Colleges of Spokane 15 FD130
Edmonds
Bates Tech
Clark College
Lower Columbia College
Lake Washington Institute of Technology 2 FD130
Big Bend Community College
Clover Park Technical College
Cascadia Community College
45) Question: What standalone make/model are you using today?
Response: Our standard issued Point of Sale Terminal is the First Data FD130 Duo.
OST RFP: BC-2019-01 Page 20 November 21, 2019
46) Question: Which ones are EMB enabled?
Response: We require all new terminals process EMV transactions. Our standard terminal, the FD130 is EMV capable.
47) Question: What gateway is used with Ventek parking?
Response: Ventek Car Gateway to Rapid Connect on First Data’s Nashville platform.
48) Question: What gateway is used with Cash Footprint POS?
Response: BridgePay Network Gateway to FDC Nashville.
49) Question: What gateway is used with Gateway ticketing?
Response: Our State Ferries division of the Depart. Of Transportation is using Galaxy POS Version 7.3.20.10.89 with Gateway Ticketing that is connecting directly to Fiserv.
50) Question: What devices are used today with the DOL that require being replaced at 200
locations?
Response: The information provided in the RFP was out of date. Dept. of Licensing now have 1127 Verifone Vx805 terminals that replaced the Ingenico equipment.
51) Question: The DOL, UTC, LNI and DOR use ACI, which product of theirs is being used along with
device types?
Response: All are using the hosted payment product Official Payments
52) Question: How many departments charge a service/convenience fee, and what third party
processors is the state using for this?
Response: Currently, seven of our agencies charge a service fee. Four agencies use PayPoint, two agencies use Official Payments, and one uses VitalChek as the processor.
53) Question: What specific equipment is in place today at the locations in which you noted have
stand-alone terminals?
Response:
Agriculture 1 FD130
Admin for the Courts
Board of Accountancy
Statute Law Committee(Code Revisor) 1 FD130
OST RFP: BC-2019-01 Page 21 November 21, 2019
Corrections
Criminal Justice Training Commission
Dept of Early Learning
Dept of Ecology
Department of Enterprise Services 2 BridgePay
Dept of Financial Institutions
Dept of Health
Dept of Licensing 1127 LexisNexis
Department of Natural Resources
Dept of Revenue
Dept of Social and Health Services
Employment Security Department
Eastern WA Historical Society 2 FD130/Clover
Fish and Wildlife 8 FD130
Gambling Commission
Historical Society 1 Vx570
Legislative Gift Center 3 FD130
Labor and Industries
Office of Insurance Commissioner
OMWBE
Office of the Supr of Pub Ins (OSPI)
Parks and Recreation Commission-11
Parks APS
Parks EA 4 FD130/Clover
Parks EA CRS
Parks HQ 3 FD130/FD400ti
Parks NW 6
Parks NW CRS FD130
Parks Rsrv CRS
Parks Wireless 42 FD400GT
Parks SMS
Parks SW 10 FD130/Clover
Parks SW CRS
Pollution Liability Insurance Agency
Secretary of State
Utilities and Transportation Commission 2 Vx570
Veterans Affairs 5 FD130
Dept of Transportation (WSDOT) FD130
Liquor and Cannibis Board
OST RFP: BC-2019-01 Page 22 November 21, 2019
Washington State Patrol
Universities
University of Washington
Eastern WA University 14 FD130/FD400GT
Western WA University 4 T7PLUS
512/T4210
Washington State University 48 FD130/T4220
State Board for Community and Technical Colleges -27
Grays Harbor College
Highline 1 FD130
Green River
Renton Tech
South Puget Sound
Shoreline
Bellevue
Bellingham Tech 3 FD130
Skagit Valley College
Tacoma
Walla Walla
Whatcom
Olympic College
Pierce College
Wenatchee Valley College 2 FD130
Centralia College 6 FD130
Everett 3 FD130
Seattle 7 FD130/CloverS
Community Colleges of Spokane 15 FD130
Edmonds
Bates Tech
Clark College
Lower Columbia College
Lake Washington Institute of Technology 2 FD130
Big Bend Community College
Clover Park Technical College
Cascadia Community College
OST RFP: BC-2019-01 Page 23 November 21, 2019
54) Question: Which technology solutions for payment processing are you leveraging to implement
“Government Service Fee” programs today? Please also confirm the “3rd Party Vendor”
mentioned that is leveraged today.
Response: Currently, seven of our agencies charge a service fee. Four agencies use
PayPoint, two agencies use 3rd party provider Official Payments, and one uses 3rd party
provider VitalChek as the processor.
55) Question: Does each agency have its own deposit account or does everything fund to a
concentration account?
Response: Most banking for state agencies is managed by the Office of the State
Treasurer and most settlements are to the state’s concentration or concentration
subsidiary account(s). By default we require fees to be invoiced. In the case of those
agencies and colleges who might have settlement to an account outside the Treasury
we can leave it to those agencies and colleges whether they would like to allow a debit
for fees.
56) Question: Can you please confirm the (three) vendors that varying agencies use to manage a
cardholder fee (i.e. Service Fee) assessment?
Response: Currently, seven of our agencies charge a service fee. Four agencies use
PayPoint, two agencies use 3rd party provider Official Payments, and one uses 3rd party
provider VitalChek as the processor.
57) Question: Please confirm the vendor that DOL is using for all hardware and software necessary
for face-to-face and telephone transactions. Also, please confirm that this vendor leverages the
LexisNexis Gateway in a semi-integrated configuration with Ingenico hardware (Pin Pads).
Please provide the model of the Ingenico Pin Pad.
Response: The information provided in the RFP was out of date. Dept. of Licensing now have 1127 Verifone Vx805 terminal that replaced the Ingenico equipment. They are using the LexisNexis Gateway.
58) In section 2.2.8. (B), the State indicates: “Agency hires a 3rd party Agency program…3rd party has
their own processor they have already certified to.”
Question: Please expound upon this scenario, given that “If” the 3rd party has exclusivity with
another processor, how would we (offeror) be involved?
Response: Our current agreement allow us to “bring our own processor” as long as they can use our provider’s merchant IDs and can authorize and settle the transaction to one
OST RFP: BC-2019-01 Page 24 November 21, 2019
of our provider’s back end gateways. For example if one of our agencies were to purchase a new ERP system that already had the programing in place to authorize and settle transactions using Processor A’s api; we currently have the flexibility to allow this if Processor A can meet our provider’s requirements (which also includes registration with our provider as a 3rd party service provider). If this was not an option, then the agency would have to pay their software vendor to build an interface for them, usually at a substantial cost.
59) Question: As it relates to Internet Check (ACH Debit) Processing, can STO please provide the
dollar ($) volume and payment count (#) at the agency level? (annualized or avg. monthly)
Response: See worksheet posted below for FY 2019*
*Note, currently the TOLL file is NOT being produced by our current vendor. We are in a project to have our vendor produce this file for us with a go live in 2020. These numbers are included to give potential vendors an idea of the future anticipated volume. Also, Employment Security Department just started their new Paid Family Medical Leave program in June 2019, so these numbers are not reflected below. For that program since June they have had approximately 90,000 transactions processed as ACH transactions.
OST RFP: BC-2019-01 Page 25 November 21, 2019
Department of Health = files DOHOP and DOHP
Ecology = ECY1
Department of Transportation Tolling = TOLL
$10,815,587.86 sales
491,140 transactions
$24,206.00 refunds257 transactions
TOLL 750,781.16 833,717.02 733,348.55 755,732.75 715,706.14
42,632 44,435 40,500 41,256
648,397.30 649,636.50 565,510.83 638,769.65 710,864.39 685,740.27 695,276.26 $8,383,480.82
38,487 36,538 38,333 32,657 35,200 37,744 37,107 37,777 462,666
TOLL 426.75 180.00 1,012.65 516.60 664.75 124.50 519.50 7,201.90 298.00 59.30 49.65 89.90 $11,143.50
16 12 8 22 15 5 15 13 6 5 1
0
5 123
00 0 0 0 0 0
0.00 0.00 0.00 0.00 $0.00
0 0 0 0 0
ECY1 0.00 0.00 0.00 0.00 0.00 0.00 0.00
13458 2 4 4 6 6
0.00
866.50 $13,062.50
4 4 6 6 16 18
1,168.50 6,284.50 72.50 245.00 353.00 304.50DOHP 326.00 245.00 860.50 854.50 1,482.00
0 0 0 0 0 0
0.00 0.00 $0.00
0 0 0 0 0 0 0
0.00 0.00 0.00 0.00 0.00 0.00
187 108
0.00 0.00 0.00
CREDITS
153 112
DOHOP 0.00
71,846.99 47,145.00 62,748.00 122,340.00 $695,915.49
1,678 4,692139 169 278
ECY1 105,672.20 53,788.00 58,289.00 47,884.00 33,689.66
988 302 318 260
32,911.00 31,346.45
23,7682,196 1,884 1,930 2,292 2,130 1,902
28,255.19
1,836 2,004 1,798 1,932 2,138 1,726
136,402.00 134,184.50 176,826.00 153,036.50 138,628.50 $1,725,119.00
2 14
DOHP 126,822.00 145,960.00 123,887.50 146,315.00 155,276.50 121,665.50 166,115.00
0 1 1 4 1 3
857.00 1,133.25 6,994.50 442.60 $11,072.55
0 2 0 0 0
DOHOP 0.00 205.20 0.00 0.00 0.00 0.00 1,038.00 402.00
TotalJan-2019 Feb-2019 Mar-2019 Apr-2019 May-2019 Jun-2019
State of Washington
Date: 11/18/2019
Time: 8:42 am Transaction Settlement ReportFiscal Year 2019 - By Effective Date
DEBITS
Jul-2018 Aug-2018 Sep-2018 Oct-2018 Nov-2018 Dec-2018
OST RFP: BC-2019-01 Page 26 November 21, 2019
60) Question: As it relates to Internet Check (ACH Debit) Processing, if an offeror’s technology will
not support routing ACH transactions to a separate end-point whereby the ACH data is
aggregated, batched and transmitted to STO for further processing, does that preclude the
offeror from proposing on (and being awarded) the “Merchant Bankcard Services” outlined
within the broader RFP?
Response: The section on Internet Check (ACH DEBIT) Processing is not a mandatory requirement. However, if the choice came down to the top two responders and everything else was equal; the ability to provide this service could be the deciding factor because of the convenience and portability this provides the state. If you are able to process ACH Debits, but are unable to adhere to the deliverables outlined in this section, please provide your suggested alternative solution(s).
61) Question: How many standalone Terminals does the State of Washington use? Can you please
provide a breakout including the Make and Model of the standalone terminals in addition to the
quantity of each Make/Model?
Response:
Agriculture 1 FD130
Admin for the Courts
Board of Accountancy
Statute Law Committee(Code Revisor) 1 FD130
Corrections
Criminal Justice Training Commission
Dept of Early Learning
Dept of Ecology
Department of Enterprise Services 2 BridgePay
Dept of Financial Institutions
Dept of Health
Dept of Licensing 1127 LexisNexis
Department of Natural Resources
Dept of Revenue
Dept of Social and Health Services
Employment Security Department
Eastern WA Historical Society 2 FD130/Clover
Fish and Wildlife 8 FD130
Gambling Commission
Historical Society 1 Vx570
Legislative Gift Center 3 FD130
Labor and Industries
OST RFP: BC-2019-01 Page 27 November 21, 2019
Office of Insurance Commissioner
OMWBE
Office of the Supr of Pub Ins (OSPI)
Parks and Recreation Commission-11
Parks APS
Parks EA 4 FD130/Clover
Parks EA CRS
Parks HQ 3 FD130/FD400ti
Parks NW 6
Parks NW CRS FD130
Parks Rsrv CRS
Parks Wireless 42 FD400GT
Parks SMS
Parks SW 10 FD130/Clover
Parks SW CRS
Pollution Liability Insurance Agency
Secretary of State
Utilities and Transportation Commission 2 Vx570
Veterans Affairs 5 FD130
Dept of Transportation (WSDOT) FD130
Liquor and Cannibis Board
Washington State Patrol
Universities
University of Washington
Eastern WA University 14 FD130/FD400GT
Western WA University 4 T7PLUS
512/T4210
Washington State University 48 FD130/T4220
State Board for Community and Technical Colleges -27
Grays Harbor College
Highline 1 FD130
Green River
Renton Tech
South Puget Sound
Shoreline
OST RFP: BC-2019-01 Page 28 November 21, 2019
Bellevue
Bellingham Tech 3 FD130
Skagit Valley College
Tacoma
Walla Walla
Whatcom
Olympic College
Pierce College
Wenatchee Valley College 2 FD130
Centralia College 6 FD130
Everett 3 FD130
Seattle 7 FD130/CloverS
Community Colleges of Spokane 15 FD130
Edmonds
Bates Tech
Clark College
Lower Columbia College
Lake Washington Institute of Technology 2 FD130
Big Bend Community College
Clover Park Technical College
Cascadia Community College
62) Question: Is it the State’s intent to contract the payment gateway and Acquiring/Processing
services together? Said another way… Is the state in-contract with CyberSource (and/or other
gateway providers) directly, or do you utilize these technologies under the existing Merchant
Services agreement?
Response: At a minimum we do need to have the Acquiring services and at least one processing option for in-person, internet hosted payments, api integrated payments (both in-person and internet), and mobile payments. Under our current agreement, we have 6 different processors that our provider makes available to us. We do not have to contract separately with any of these 7 options, which makes it much easier for our agencies and colleges to start new payment programs.
63) Question: As it relates to the Clover Station:
a. How many Stations do you currently have?
b. Which Clover Printer does you use and how many?
c. Are you using a Clover Cash Drawer and/or other accessories and how many?
d. Are you tethering a Clover Mini to the Clover Station today?
Response: a. Four