Written Questions and Answers

Written Questions and Answers Merchant Card and Managed Tuition Services RFP UK-1679-16 Closing Date: 05/25/2016 Today s Date: 05/04/2016 No. Question Answer Who is the current provider for the Tuition Our current provider for tuition 1 Payment Management Services portion of the payment management services is RFP as described on page 11 and 28 through Value Payment Systems (VPS). 31? 2 3 4 Who is the current provider for all other merchant card services? What are the current service fees charged for credit, debit and e-check by the current Tuition Payment Management Services provider? What are the current fees charged to the University for all other merchant services as noted on Attachment B. Our current credit card processor is WorldPay. Our current service fees charge to payers for tuition and mandatory fees via credit card are as follows: Credit card 2.25% Debit card 1.50% e-check is handled internally within the UK system and/or UK Student Account Services staff. There is no charge for e-check payments. To obtain any pricing that exists in current contracts, an Open Records Request would need to be submitted. Open records requests must be placed through UK Office of Legal Counsel. Requests can be made through email at ukopenrecords@email.uky.edu. The request should clearly state the document(s) being requested (e.g., technical & financial proposal of winning vendor) and point of reference (e.g., RFP number). Parties must include their return contact information including postal address, fax, email, etc. Written Questions and Answers Page 1 of 13

Can the University provide a breakdown of the transactions for tuition noted on page 11 by card type and e-check for website and swipe terminal. Tuition Payments via website (CNP, ecommerce) American Express 2,947 $6,642,091.60 Discover 1,338 $1,530,585.97 MasterCard 8,069 $7,397,884.59 Visa 19,592 $18,117,546.54 5 6 Does the University require completion of the implementation of the Tuition Payment Management portion of the RFP November 1, 2016? Tuition Payments in person via swipe terminal (card present) American Express 78 $186,293.74 Discover 35 $42,977.89 InterLink 1 $476.00 Maestro 2 $0.02 MasterCard 288 $456,980.91 Visa 1,011 $1,566,645.77 e-check is not handled by our tuition payment management service provider. It is desired to have this service implemented by the end of the contract with our current provider on November 13, 2016. 7 8 At how many locations are payments taken under the Tuition Payment Management Services portion of the RFP? How many terminals/swipe devices are currently in use to take card-present transactions for Tuition Payment Management Services? How many does the University envision needing? Tuition payments are accepted online through our student payment portal and in person at our Student Account Services location in the Funkhouser Building. There are six customer service windows, each with a credit card swipe terminal allowing them to process the tuition payment, as well as the service fee, and presenting a message to the payer requesting to acknowledge the service fee and having an opt out option. Six 9 10 May a vendor bid on the Tuition Payment Management Services portion of the RFP only? How many applications is the vendor to integrate with in total? How many for the Merchant Provider portion of the RFP? How many for the Tuition Payment Management Services portion of the RFP? Yes. This is a multi-services RFP. Please submit proposals specific to the service(s) in which you are most interested. The tables in Section 2.2 on page 9 show the equipment and internet payment gateways currently in use for merchants across campus. Most merchants utilizing a payment gateway are doing so in order to accept ecommerce transaction via their website through hosted order pages. The online payments flowing Written Questions and Answers Page 2 of 13

through the Tuition Payment Management Service also use an internet payment gateway, but also has minimal integration with our Student Payment Portal via SAP. 11 12 13 14 15 16 17 On page 8, it states, At the beginning of each month, the processor will initiate an ACH debit for each individual merchant account for the cumulative fees accrued throughout the month. The Treasury Services department staff will then allocate those fees to the appropriate University accounts. Will the processor then bill each individual account for fees? Can the University clarify the fee process? The University states that chargebacks totaled $6,428.82 FY 2015. What were the chargebacks for tuition payments and mandatory fees only? Who is the current Merchant Acquirer and when does your contract expire? What is the company name and product name of the tuition payment management service provider used by the University for both card-not-present and card present transactions? What processor or processing platform does the tuition payments process through? Is the University the merchant of record on the tuition payments processed via the service provider? Are chargebacks on the tuition payments charged back to the University or to the vendor? Yes, the processor will accrue fees for each MID throughout the month. The batch settlements for payments collected will be deposited into the University bank account in gross. The fees associated with those transaction batches for each MID will be accrued throughout the month and then an ACH for all accrued fees for each individual MID will be initiated within the first few days following the end of the calendar month. The chargeback data included in the RFP is encompassing of all chargebacks received for ALL University MID s, not just for tuition and mandatory fees. Worldpay is our current merchant acquirer. Our current contract expires on November 13, 2016. Value Payment Services (VPS) for both transaction types. All credit card transactions for the payment of tuition and mandatory fees are processed through Worldpay. Yes, all credit card payments for the payment of tuition and mandatory fees are processed through a merchant account in the name of the University of Kentucky through Worldpay. To the University. Written Questions and Answers Page 3 of 13

18 19 20 21 22 23 24 25 Has EMV been implemented on the card present transactions acceptance under the current tuition payment management service provider? Is it the University s intention to continue utilizing their current tuition payment service provider or is the University asking the responder to provide an alternative solution as a replacement? What is the manufacturer, name and model of the stand-alone terminals provided by the tuition payment service provider and are these devices included in the terminal information provided in section 2.2 Background Information table 3? Are any locations accepting payment via echeck today and if not are you interested in accepting payment via echeck (ECA for over-the-counter, Internet Check Acceptance for online)? If accepting or interested in accepting payment via echeck please provide the number of transactions and sales volume processed annually for echeck by each acceptance method Web, POS, and Phone? If accepting or interested in accepting payment via echeck what percentage of the echeck transactions are business checks? If accepting or interested in accepting payment via echeck is any of the echeck volume warranted or guaranteed and if not are you looking for a warranty/guarantee program? What check readers are used today, the number of each, manufacturer, make and model and if owned, rented or leased? Not at the current time. We will review all proposals received for each service, regardless of whether the proposer is the existing provider or not. Ingenico ICT220 We do have a couple of locations on campus that allow payments via e- check. These e-checks are processed internally by the department personnel via an ACH file presented to our bank for processing. Our tuition payment management service provider does not currently process e-checks for us via their product, as those payments are handled internally by Student Account Services. We do not have any locations on campus using ECA readers for converting physical checks received to ACH. Our Student Account Services department processed 32,344 e- check ACH transactions for $101,311,979.08 in fiscal year 2015. Date from other departments processing e-check ACH transactions is not available at this time. This information is not available at this time. The University would be interested in hearing more about your proposed solution and the warranty/guarantee program. We do not have any locations on campus using ECA readers for converting physical checks received to ACH. Written Questions and Answers Page 4 of 13

26 27 28 What card readers are used today, the number of each, manufacturer, make and model of each and if owned, rented or leased? What version of MainStreet Software Monetra Payment Engine is the University utilizing today? Is the University planning on implementing EMV at locations utilizing Monetra? If so what is the manufacturer, name and model of the devices each location plans to use? Are all of the VAR - Internet Gateway Processing vendors listed in 2.2 Background Information table 3 processing through the TSYS platform or is just the two that indicate TSYS from the listing? Our equipment is listed in Table 3 of Section 2.2 on page 9. The only other equipment not listed in this table are the 6 Ingenico ICT220 terminals we are using for processing in-person transactions at our Student Account Services locations, which were inadvertently left off the list. We own all of our own equipment. At this point, the MainStreet Software Monetra Payment Engine serves solely as an internet payment gateway integrated with a service provider s website to allow students to load funds onto their student payment card. The version of that gateway could not be determined at the time these questions were answered. We currently do not use EMV terminals via Monetra at any location and as of this time do not have plans to do so. Although some of the gateways may be using the TSYS platform, we are only aware of the two listed in 2.2 as definitely TSYS. 29 30 If any location is using a POS system, provide the company name, product name, and version, including service packs of each system? If any of the POS systems use a third-party payment software/middleware application, provide the company name, product name and version, including service packs of each software and the POS system it is used with? Currently, due to security reasons, we do not have any locations that process payments through a POS system. There are several departments interested in processing payments via POS, in particular our UK HealthCare retail pharmacies who are currently working on implementing the ScriptPro POS for their pharmacy locations. If they proceed with processing payments via their POS, it is desired that it is done so via a P2PE solution. Currently, due to security reasons, we do not have any locations that process payments through a POS system. Written Questions and Answers Page 5 of 13

31 32 33 34 35 36 37 If any of the POS systems use a third-party payment gateway, provide the company name, product name and the POS System it is used with? If a payment gateway is used for over the counter, mail or telephone payment processing, provide the company name and product name of the gateway and locations using this acceptance type and how it is used in conjunction with each acceptance method? Is the website payment interface via a hosted order page or application programming interface? What locations accept or anticipate accepting convenience fees and who manages or would manage the fees? If planning on accepting convenience fees does the location anticipate a two transaction model and if so who receives funding for the second transaction? Who funds the University for Discover transactions? Who funds the University for American Express transactions? Currently, due to security reasons, we do not have any locations that process payments through a POS system. Credit card payments for over-thecounter, mail and/or telephone payments are processed by swiping or key-entering the credit card information into a standard, dial-up credit card terminal. Most of our e-commerce merchants utilize hosted order pages via their internet payment gateways. Some use the Authorize.net API s for integration, most using the SIM or DPM integration method. Currently only our tuition and mandatory fee payments through Student Account Services are charging a service fee for credit/debit card payments. Our current tuition payment management service provider manages the collection of those fees. We currently use a two transaction model for charging service fees for tuition and mandatory fees as required by VISA Government and Higher Ed Service Fee Program. Our current tuition payment management service provider manages the collection of those fees. All Discover MID s are issued and maintained by our existing merchant acquiring provider. All Discover transactions are processed and settled directly through our processor the same as VISA and MasterCard transactions. The University works directly with American Express to set up all MID s and passes that information back to our processor to be associated with the appropriate Worldpay MID. Worldpay passes all American Express transactions directly to American Express for authorization and settlement. American Express sends the settled funds and fees Written Questions and Answers Page 6 of 13

directly to the University via ACH. 38 39 40 41 42 43 44 45 46 47 Does any location utilize tokenization today, if so please provide the tokenization method and product used? Does any location utilize point-to-point (P2P) or end-to-end (E2E) encryption today, if so please provide the encryption method and product used? What is the time frame of your current funding for payment of your settlement items? How are you funded via wire or ACH? What depository bank are your funds settled into? What is your settlement cutoff time? Do you have an EMV strategy, if so what is your timeframe to implement and what solution and EMV devices (manufacturer and model name and number) are you considering? In regards to references, please clarify the request. Are you asking the respondent to provide three total references of current clients? In regards to item 7 on page 43 of the RFP, what are the requirements for funding? Does the University require next business day funding, or funding within 48 hours of the transaction? Managed Tuition Payment Service: - Will UK carve out tuition payment, from the other solutions? - How many terminals are needed for card present Tuition payments? We do not have any locations on campus that have a need to use tokenization at this time. We currently do not have any locations utilizing P2P or E2E encryption, although some are evaluating the technology for potential integration with their POS Systems. Our settlement process is described in the third paragraph of Section 2.2 on page 8. The University receives funds via ACH within 2 business days of the settlement date. Our settlement process is described in the third paragraph of Section 2.2 on page 8. The University receives funds via ACH within 2 business days of the settlement date. PNC Bank Most merchants settle by midnight of the current day. We have been evaluating our cardpresent activity and the need for EMV card processing. Our hopes are to have an EMV solution in place as a result of this Merchant Card Services RFP. Per the question 1 in the References section of 4.8 on page 32, it states three current clients and two former clients (preferably within Higher Education) The University desires to receive funds via ACH within 2 business days of the settlement date. Currently, tuition is paid through its own MID via its own systems and card terminals. Written Questions and Answers Page 7 of 13

48 49 - Is UK willing to handle all Tuition Payments as card not present transactions? Will the University agree to changing terminals or gateway solutions if the current solutions are not certified with merchant processor? i.e. Vx510, Vx680 terminals, Skipjack, Merchant Partners SDK? UKHC-What patient accounting systems are used by the entities or departments that comprise UK HealthCare? We currently have six terminals used for card present tuition payments. This is not our current strategy, but will consider alternative strategies if a benefit can be proven. Yes, if the current solutions are not certified with the merchant processor. McKesson Healthquest 50 UKHC-Currently, how are patient-related credit card receipts posted to their respective patient accounting system(s)? Manually posted from the merchant copy of the receipt. 51 UKHC-Can each patient accounting system used accept an EDI835 file or other format (flat file, csv, etc) for the posting of the receipts? Yes 52 53 54 55 UKHC-How are payments (cash / check / credit card) accepted at each of the patient related touch points (patient facing /phone / and web) handled according to the below? a. Receipted? b. Deposited (if applicable)? c. Posted to Patient Accounting System UKHC-Has UK HealthCare considered an Interactive Voice Response (IVR) option for handling any of its collections? UKHC-What payment options (credit card / checking account etc) are allowed when making payments over the phone or web? Are payment plans offered? UKHC-Are patient statements presented over the web? If not, is this something UK HealthCare is considering? Who is your statement print provider? Payments are receipted at various payment acceptance locations and then all funds/receipts are sent to a central location for deposit and posting to patient accounts. We do not utilize an IVR for payment processing, but would be interested in learning more about potential solutions. Payments by phone can be done by either credit card or check/ach. Patient healthcare payments cannot yet be made via website. RelayHealth, along with Diamond HealthCare Solutions produce our statements. We have had an on/off again project for creating a Financial Patient Portal the vendor of choice selected is RelayHealth. Currently, the patient statements are not yet being presented via the RelayHealth patient portal, but hopefully will be Written Questions and Answers Page 8 of 13

an option in the future. 56 57 58 59 60 UKHC-Please provide an address listing of the departments/entities that make up UK Healthcare UKHC-Table 3 Swipe terminals a. What terminal types or devices are used by the UK HealthCare departments? b. Do the devices provide image check deposit? c. Do the devices provide check conversion to ACH? May we use your logo in our response? Table 3 VAR Internet Gateway Processing a. Does UK contract directly with these VAR/Gateway providers? b. Are they provided through your existing acquirer? c. Where these selected due to integration with front end systems? Could the college please expand on the technology that sits in front of the Authorize.net and Skipjack? A listing of UKHC locations that accept payments can be found in Q&A Attachment 1 UKHC Payment Locations. a. Within UKHC, departments use Verifone swipe terminals with the following model numbers: Vx520, Vx570, Vx610, and Vx680. b. Our current credit card swipe terminals do not provide image check deposit. c. Our current credit card swipe terminals do not provide check conversion to ACH. Yes, but only in your response. Further usage of our logo, the name of University of Kentucky, or its marks, is strictly prohibited. a. Some gateways are provided by reseller arrangements through our current processor. Others are contracted directly. b. Some gateways are provided by reseller arrangements through our current processor. Our current processor also has their own gateway product that is also being offered and utilized by the University. c. Some were specifically selected due to integrations with certain service provider front end systems. Most of our e-commerce merchants utilize hosted order pages via their internet payment gateways. Some use the Authorize.net API s for integration, most using the SIM or DPM integration method. A majority of both methods mentioned above are integrated on a University website where end users are redirected to those gateways for payment processing. Written Questions and Answers Page 9 of 13

61 62 63 64 65 66 67 68 Do you need the vendor to provide your customers one time and/or reoccurring payments? Is there specific operational functionality that each of gateways provide? Is ACH payment a feature option within each Gateway? If yes what are the current number of transactions and volumes? Does the University use any type of fraud tools within these Gateways? Does the University manually review individual high risk transactions? If yes what is the process? Is the University looking to consolidate Gateways? What is the number of transactions that occur via each Gateway? If accepting e-check, when are ACH payments funded? There are several merchants on campus that utilize recurring payment solutions provided by the gateway service provider. Most of our e-commerce merchants utilize hosted order pages via their internet payment gateways. Some use the Authorize.net API s for integration, most using the SIM or DPM integration method. A majority of both methods mentioned above are integrated on a University website where end users are redirected to those gateways for payment processing. There may be a few solutions on campus requiring specific operational functionality and those instances will be handled on a case by case basis. Some of our gateway service providers do offer ACH payment processing, but the University merchants are currently not authorized by Treasury Services to use that service. We recommend merchants utilize AVS and CVV2 verification. Some gateways are now offering new fraud tools, such as velocity monitoring, that aren t yet being fully utilized. We do not at this time but would be interested in hearing review process recommendations. Yes. Authorize.Net 73,532 $11,569,223.46 DataCap Sys Inc. 41,156 $285,250.00 MNSt Mon Pmt Eng 15,821 $1,496,061.77 Merchant Partners 273 $20,974.76 SkipJack 25,823 $2,494,690.44 TSYS- Monetra/MnSt 377 $56,727.00 TSYS PayfloPro 3,650 $130,324.00 We have various departments on campus that process ACH s using varying methods, but all basically produce a file that is approved by our Treasury Services department which is then presented to our primary financial institution for processing and settlement. Typical settlement of those funds is 2 Written Questions and Answers Page 10 of 13

business days. 69 70 71 72 73 74 75 76 What is the primary banking institution utilized by the University? Who handles the funding for ACH payments? What are your returns? (Gross Dollars and number of transactions) How are ACH returns handled? When there is a return how is the University notified? Collection process, (internal /external) process flow. Please provide details. What are the current charge offs and write offs associated with ACH payments? Does the University accept checks (face to face) transactions? (POP) PNC Bank Our ACH payments are handled by our primary financial institution. For our Student Account Services e- check ACH payments for tuition and mandatory fees, as well as housing and dining, we have incurred $3,962,703.18 in returns in the current fiscal year. We have various departments on campus that process ACH s using varying methods, but all basically produce a file that is approved by our Treasury Services department which is then presented to our primary financial institution for processing and settlement. Each department producing ACH files has access to the online banking system where they pull a report for Returns/NOCs. Internal staff then research the Returns/NOCs and correct them as necessary. Each department producing ACH files has access to the online banking system where they pull a report for Returns/NOCs. University departments are primarily responsible for their collections, although processes vary. An example of one of our departments collection process would be that our Student Account Services will try to collect outstanding amounts owed themselves for a year before passing those amounts to an external agency for collection. If the external efforts fail after one year, those accounts may be handed over to the Kentucky Department of Revenue. University policy states that an outstanding charge in excess of three years may be written off. Yes, we accept checks for payment for point of purchase (POP) transactions. Written Questions and Answers Page 11 of 13

77 78 79 80 81 82 83 84 85 86 87 88 Do you use a company to authorize and settle those transactions? If yes with whom provides the University the service? Is the service self-risk or a warranty/guarantee service? What dept. or area takes ACH/Checks? Are these ACH or paper based? If checks are accepted, what are the dollars and number of items that these payments represent? How are returns handled? What are the dollars and number of items returned? What does the University write off or charge off? What patient accounting systems are used by the entities or departments that compose UK HealthCare? Currently, how are patient-related credit card receipts posted to their respective patient accounting system(s)? Can each patient accounting system used accept an EDI835 file or other format (flat file, csv, etc.) for the posting of the receipts? How are payments (cash / check / credit card) accepted at each of the patient-related touch points (patient facing /phone /web) handled according to the below? a. Receipted? b. Deposited (if applicable)? More detail would be needed for us to answer this question. More detail would be needed for us to answer this question. There are many departments on campus that accept payments via check or ACH. A detailed list must be obtained through open records request. Both. This information is not available at this time. Our primary financial institution will present checks for clearing two times before notifying the University Treasury Services department that a check has been returned unpayable. Treasury Services will then notify the department personnel that deposited the unpayable item for their own collection efforts. Treasury Services will debit that department s cost center for the amount of the returned item. This information is not available at this time. This information is not available at this time. answer in Question 49 above. answer in Question 50 above. answer in Question 51 above. answer in Question 52 above. Written Questions and Answers Page 12 of 13

89 90 91 92 93 94 95 c. Posted to Patient Accounting System? Has UK HealthCare considered an Interactive Voice Response (IVR) option for handling any of its collections? What payment options (credit card, checking account, etc.) are allowed when making payments over the phone or web? Are payment plans offered? Are patient statements presented over the web? If not, is this something UK HealthCare is considering? Who is your statement print provider? Please provide an address listing of the departments/entities that make up UK Healthcare Table 3 Swipe terminals a. What terminal types or devices are used by the UK HealthCare departments? b. Do the devices provide image check deposit? c. Do the devices provide check conversion to ACH? May we use your logo in our response? Table 3 VAR Internet Gateway Processing a. Does UK contract directly with these VAR/Gateway providers? b. Are they provided through your existing acquirer? c. Were these selected due to integration with front end systems? answer in Question 53 above. answer in Question 54 above. answer in Question 55 above. answer in Question 56 above. answer in Question 57 above. answer in Question 58 above. answer in Question 59 above. Written Questions and Answers Page 13 of 13