F U.S. Bank Operational Standard Terms Conditions Requirements - RFP 28238-BD Sec 8.0.pdf

Attachment E: Operational Terms and Conditions Sheet RFP 28238-BD: Enterprise Banking Services

INSTRUCTIONS

THIS SECTION IS NOT SCORED.

Revise document header to include your company name. Using the table below, Proposer shall provide a response to any exception regarding the listed Operational Terms & Conditions along with proposed alternative option and/or including additional language in the section areas marked with EXCEPTION.

If the Proposer does not have an exception for a given Operational Terms and Conditions section, then no response shall be needed.

eSUPPLIER SUBMITTAL: The Operational Terms & Conditions Response Sheet (Attachment E) shall be uploaded with the Proposers responses into eSupplier.

HARD COPY SUBMITTAL: The Operational Terms & Conditions Response Sheet (Attachment E) shall be organized in TAB 4 of the Proposal Submittal. The Proposer shall sign and date.

BIDDER/PROPOSER NAME: U.S. Bank

PROPOSER SHALL RESPOND WITH ANY EXCEPTION OF THE FOLLOWING OPERATIONAL TERMS & CONDITIONS

SECTION RFP SECTION 8.1: GENERAL REQUIREMENTS

8.1 GENERAL REQUIREMENTS

8.1.1 AGGREGATE ACCOUNT LEDGER AND COLLECTED BALANCES

Contractor shall aggregate ledger and collected balances for the State’s pool of accounts as described in RFP Section 4.0, “State of Wisconsin Cash Management Environment”.

8.1.1 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.1.1"

8.1.2 CUSTOMER SERVICE OMBUDSMAN

Contractor shall designate a single point of contact for the Contract, to serve as the primary Customer Service Ombudsman for day-to-day operational problems or questions. The Ombudsman shall be familiar with the State’s cash management activities sufficient to quickly troubleshoot reported problems or answer questions. The State requires that the Ombudsman or a comparable backup be available for inquiries during scheduled business hours (approximately 8:00 a.m. to 4:30 p.m. Central Time) each banking day. Also, the Provider shall have an attended 24/7 customer service support call-in number for issues that arise outside of normal business hours.

8.1.2 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.1.2"

U.S. Bank complies, with the following clarifications:

Commercial Customer Service – Milwaukee Team 3 – is available 7 a.m. - 5 p.m. CT. Other Commercial

Customer Service sites in Seattle and Portland are available until 7 p.m. CT.

For issues that arise outside of normal business hours, U.S. Bank 24/7 customer support is available for

ACH production, data integration/transmissions and for ePayment and eBill gateway.

The State shall have mobile phone access for the relationship manager for after-hours contact.

8.1.3 BANK SYSTEM AND REPORTING CHANGES

The State has minimal resources to devote to file layout or reporting changes made by the Contractor. Contractor shall consult with the State on potential changes that affect the layout, format or timing of data files transmitted or processed to/from the State, and the State shall agree to the changes. Contractor shall ensure that the State is notified at least 120 Days in advance of the implementation of any such changes. Notification shall include a detailed technical description of the change, such as project business requirements and a design document. Adequate time shall be allowed for testing if deemed necessary by the State.

Contractor shall not change the content or timing of any data files unless the change has been pre-approved by the State. Contractor shall receive approval from the State prior to determining the implementation date. In addition, the Contractor shall notify the State at least 30 Days in advance of any change affecting a report or reconciliation service, a required form, ticket or letter, or physical or electronic address.

8.1.3 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.1.3"

U.S. Bank complies.

Elavon has the following exception:

Modifications of services will be provided as set forth in Section 7 of the Elavon Agreement.

8.1.4 ANNUAL DISASTER RECOVERY TESTING

Contractor shall execute annual disaster recovery testing and provide the State with documented results and a remediation plan with committed resolution dates for any item identified as a weakness, material or otherwise from a technical, process, procedural or organizational perspective as provided to the State by the Contractor under this RFP.

8.1.4 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.1.4"

Annual test results will not be released to the State, however the SSAE 18 internal controls document will be provided to the State as set forth in Section 10 of the Elavon Agreement.

8.1.5 PAYMENT OF CONTRACT FEES

The State may pay for the services rendered by the Contractor either by direct fees (State-issued check or authorized account debit) or by compensating balances or any combination thereof. It is currently DOA’s policy to maximize the investment of daily collected balances within the State Investment Fund by minimizing the cash balances maintained at the enterprise bank. However, under certain circumstances, DOA may be interested in temporarily investing significant cash balances with the Contractor. The terms of any such temporary investments shall be negotiated at that time.

8.1.5 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.1.5"

8.1.6.1 AUTHORIZED PRICE ADJUSTMENTS

Price adjustments (pass through or other minor adjustments) may be allowed upon approval of the Contract Manager. No other price adjustments shall be made without the express written approval of the.

8.1.6.1 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.1.6.1"

Elavon has the following clarification:

To the extent pricing is dependent upon pass through items such as interchange, assessments or third party fees, such items will be passed through when received.

8.1.6.2 UNANTICIPATED SERVICE VOLUME INCREASES

The State may elect to renegotiate at any time, the price for those services for which the annual volume for the most recently completed fiscal year exceeds 125% of the volume listed in RFP Section 7.0, “Cost Proposal”. If the State and the Contractor are unable to reach an agreement on a renegotiated price, the State reserves the right to seek the services within that RFP section through another Proposer.

8.1.6.2 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.1.6.2"

Initial term pricing will be enforced as set forth in the Elavon Agreement.

8.1.6.3 CHANGES IN THE NAMES OF SERVICES PROVIDED

Contractor shall notify the State in writing at least 30 Days prior to renaming a service on the monthly account analysis statement.

8.1.6.3 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.1.6.3"

8.1.6.4 UNAUTHORIZED PRICE ADJUSTMENTS

The State shall consider any billed item that does not exactly match the original Cost Proposal in RFP Section 7.0 to be an unauthorized price adjustment. The Contractor’s billings shall not contain unauthorized price adjustments.

8.1.6.4 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.1.6.4"

8.1.7 CALCULATION OF COMPENSATING BALANCE EARNINGS

Compensating balance earnings shall be computed monthly for each account using the following formula:

*REFERENCE TABLE 8.1.7 at the end of this document.

8.1.7 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.1.7"

U.S. Bank complies, with the following exceptions:

U.S. Bank offers two different indices based on the 91-day T-Bill rate; however, information is obtained from treasury’s direct reporting portal.

o 13-week average of the 91-day T-Bill (auction high rate)

Or o 30-day avg of the 91-day T-Bill

Alternatively U.S. Bank can also offer the State the ability to use a Target Fed Funds rate index if preferred.

The Monthly Compensating Balance Earnings is currently calculated by dividing the Annualized Compensating

Balance Earnings by the number of days in the year and multiplying by the number of days in the month.

These exceptions should have no material effect on the State over the course of this contract. If these exceptions are unacceptable to the State, U.S. Bank will consider making adjustments to the formula currently used.

8.1.8 VISITS TO BANK

Contractor agrees that the Wisconsin Department of Administration may schedule a visit with the Contractor to observe and inspect the operations of the Contractor in providing service under the Contract.

8.1.8 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.1.8"

8.1.9 LEGISLATIVE AUDIT BUREAU/OUTSIDE AUDITORS

Contractor shall cooperate with and make space available for auditors when the Legislative Audit Bureau or any outside auditors employed by the Board, the Legislature, or federal Agencies audit this Contract or any Agency of the State for which services are being provided under this Contract.

Within 30 Days of issuance, the Contractor’s outside auditors shall provide the Contract Manager with a copy of any report that provides information regarding the adequacy of the Contractor's internal controls. This includes, but is not limited to, Service Organization Control (SOC) 1 - Type 1 or Type 2 Reports.

8.1.9 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.1.9"

Elavon will provide the State, during normal business hours, with at least ten days prior written notice, at the State’s expense, subject to Elavon’s standard security policies, applicable laws and Payment Network Regulations, and no more than once annually, with records and information pertaining to transactions processed under the Elavon Agreement. However, due to the sensitive nature of the information processed, Elavon cannot permit the State or anyone to have unfettered access to Elavon’s books and records.

The SSAE 18 internal controls document will be provided to the State as set forth in Section 10 of the Elavon Agreement.

8.1.10 REQUIREMENT OF CONFIDENTIALITY

Contractor shall have all employees who process State records sign a statement that shall be similar to the following:

"The Contractor is the primary depository for the State of Wisconsin. Because of this relationship, it shall be working with return documents and checks for various Departments of State Government. The State requires you as an employee performing duties under the State of Wisconsin Enterprise Banking Contract to fully comply with the following:

Wisconsin law prohibits revealing or offering to reveal any information on certain tax and other documents filed with various Departments of the State and processed by the Contractor.

Consequences for divulging any such information may result in:

1. A minimum of $100 and a maximum of $500 fine.

2. Imprisonment for not less than one month but no more than six months.

3. Or both a fine and imprisonment.

I acknowledge that I have received, read and understood the above information."

Further, confidentiality is a key responsibility of the Contractor. The application for employment with the Contractor shall require and ensure high standards of honesty and discretion and further state that failure to maintain those standards is cause for dismissal from the Contractor.

8.1.10 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.1.10"

Elavon will include the requested provision in all future subcontracts for work to be performed exclusively for the State under the Elavon Agreement. Elavon will not seek to amend its existing subcontracts, as it cannot do so every time it is a successful bidder.

8.1.11 COMPUTER PROGRAMS AND OTHER SOFTWARE

All computer software developed by the Contractor or its subcontractors solely for the operations contemplated under this Contract and which are used solely for the operations contemplated under this Contract, shall belong to and shall be delivered both in written and electronic storage form to the State of Wisconsin 24 months prior to the termination of the Contract. Contractor agrees that if it should not make a Contract proposal or is an unsuccessful competitor, or is not named as a Contractor following the termination of the Contract contemplated by this RFP, it shall cooperate with the State and any successor in order to smoothly transition the State’s banking needs to the successor institution.

8.1.11 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.1.11"

Elavon retains all proprietary rights to its products and services, as is set forth in the Elavon Agreement.

8.1.12 PERIODIC PERFORMANCE MEETINGS

The State and the Contractor shall periodically meet at agreed-upon times to review performance and ensure continuous improvement.

8.1.12 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.1.12"

8.1.13 UNANTICIPATED SERVICES

The State reserves the right to negotiate with the successful Proposer reasonable fees for banking services unanticipated or not existing at the time of the Contract award. The State may, at its option, Contract for such services through an alternative process.

8.1.13 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.1.13"

8.2 DEPOSIT AND FUNDS AVAILABILITY

8.2.1 LEDGER CREDIT

Contractor shall provide same-day ledger credit for those deposits that are couriered from State Agencies to the Contractor’s main processing location and delivered by the Contractor’s end-of-day ledger cut-off as described in RFP Section 6.2.3, “Deposit Processing.”

8.2.1 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.2.1"

8.2.2 COLLECTED CREDIT

• Funds received through the Automated Clearing House (ACH) shall be considered as collected funds no later than the opening of business on the ACH settlement date.

• Funds received through wire transfer shall be considered immediately collected funds and available.

• Cash and “on us” items shall be considered same-day collected funds if delivered to the

Contractor by their end of day ledger cut-off on a business day.

All other items shall be credited to the account of the State Controller based upon the availability schedule submitted in RFP Section 6.2.5, “Availability Schedule”. The availability schedule cannot be changed without the written approval of the Contract Manager.

8.2.2 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.2.2"

8.2.3 DEPOSIT VERIFICATION AND ADJUSTMENT

Contractor shall credit the State Controller’s Account with the amounts shown on deposit tickets and make adjusting entries if the tickets vary from the actual amounts deposited.

If provisional credit is given, verification and adjustment shall take place within 1 business day. In the event verification and adjustment occurs after this time, the credit shall be considered as deposited on the original deposit date for determining the monthly analysis and compensating balances.

Contractor shall accept for deposit both un-encoded and pre-encoded checks.

8.2.3 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.2.3"

8.2.4 MONEY PROCESSING SERVICES

Contractor shall receive and count cash delivered from the State and provide cash or rolls of coins as needed. The Wisconsin State Fair utilizes these services throughout their annual fair event.

8.2.4 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.2.4"

8.2.5 DEPOSIT TICKETS

Contractor shall furnish 2, 3, 4, parts of non-carbon deposit tickets to the State. Costs of providing deposit tickets shall be passed through to the State at the Contractor’s cost. Present usage of deposit tickets Statewide is approximately 20,000 per year. Forms presently used are three-part, color coded, and snap-out on NCR paper.

8.2.5 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.2.5"

8.2.6 SPECIAL ACCOUNTS

The State requires that a special category of interest-bearing accounts be established that shall be outside of the normal cash concentration process. These accounts shall also earn interest at the compensating balance earnings rate. The State shall have the option of settling the accumulated earnings surplus/deficit for each of these accounts quarterly or annually. It is the State’s intent to minimize the balances in these accounts such that the fees exceed the compensating balance earnings. However, if the net position of an account is positive, the Contractor shall pay interest directly to the account. If the net position is negative, the State shall be invoiced accordingly.

Initially, these accounts shall include the following (service volumes are included within Attachment C, Cost Proposal):

*REFERENCE TABLE 8.2.6 at the end of this document.

8.2.6 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.2.6"

8.2.7 ONLINE ACCESS TO IMAGES OF CHECKS DEPOSITED

The Bank shall provide online access to images of all checks deposited.

8.2.7 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.2.7"

8.2.8 REMOTE DEPOSIT

Contractor shall provide services for scanning and transmitting check images for deposit from State Agency remote locations or scanning and converting the checks to ACH-debit transactions.

The State currently has 12 scanning locations, each using an Epson TM-S1000, Model M236A scanner and 5 Epson CaptureOne scanner, Model 30.

8.2.8 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.2.8"

8.2.9 ADJUSTMENTS

Contractor shall provide electronic copies of supporting documents for all debit and credit adjustments to the State within 5 business Days of the account adjustment.

8.2.9 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.2.9"

8.2.10 IMAGE CASH LETTER

Contractor shall be able to accept and process daily Image Cash Letter deposits, and shall provide same-day ledger credit for those deposits delivered to the bank by 10 pm.

8.2.10 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.2.10"

8.3 CHECK PROCESSING

8.3.1 RECONCILIATION SERVICES

Daily check issuance and cancelled check information shall be transmitted to the Contractor. The record layout for this file is contained in Appendix A, “Supplemental Information”. The Contractor shall provide a separate monthly reconciliation for each major check writing application listed in RFP Section 4.0, “State of Wisconsin’s Cash Management Environment.” The reconciliation shall show the checks issued, checks paid, checks stopped, checks cancelled and checks outstanding.

• Contractor shall initiate any paid check adjustments by the end of the current month.

Paid check adjustments discovered on the last business day of the month may be initiated in the following month.

• Contractor shall provide a summary of all adjustments made to each account including any adjustments to the paid and outstanding check reports.

• Contractor shall provide a monthly electronic file that shall include all checks that were paid or stopped during the month and all checks that were outstanding at the end of the month. This file shall include the account number, serial number, amount, issue date, paid date (if any) and stop date (if any).

• Contractor shall provide a daily electronic file of paid checks for checks issued by the Department of Children and Families – Bureau of Child Support. The file shall include the account number, serial number, amount, issue date and paid or stop date.

• Contractor shall process in that night’s processing cycle all issued and cancelled check files received from the State by 10:00 p.m. of each bank business day.

• Contractor shall communicate any change in the reconciliation services and/or reconciliation reports to the State at least 30-Days prior to the change.

• In order for the counties and the Bureau of Child Support to provide the expected level of customer service, the Contractor shall send weekly account reconciliation data for the Child Support checks to the Department of Children and Families and its fiscal agent within 7 business Days of the end of the period.

8.3.1 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.3.1"

8.3.2 UNPAID CHECKS

Contractor shall honor all State checks until the stale date printed on the check (currently 1-year for nearly all State checks). Contractor shall stale date all unpaid checks on a monthly basis by deleting from the outstanding list all checks that are one year old and electronically reporting the account number, check number and amount of each item deleted. Checks issued by the Department of Children and Families – Bureau of Child Support are staled-dated quarterly. The monthly unpaid check file shall be transmitted to the State within 7 working Days of the end of the month/quarter.

8.3.2 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.3.2"

8.3.3 FRAUDULENT CHECKS

Contractor shall act as an agent to collect all fraudulent checks cashed. Items returned with affidavits of forged endorsements shall be processed and credits shall be made when credit is received or within 60 Days for on-us items; whichever is sooner. If collection cannot be accomplished, the financial institution initially cashing the check is responsible for investigating the forgery claim and pursuing any legal action.

8.3.3 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.3.3"

U.S. Bank complies, with the following clarification:

For forged endorsement claims, the State of Wisconsin uses their own Affidavits of Forged Endorsement, which are sent to Commercial Customer Service. Commercial Customer Service submits forged endorsement claims to DDA Fraud Services, who provide a case number for each claim. Commercial Customer Services keeps a spreadsheet of all open fraud claims, providing status updates to the State upon request. If funds are successfully recovered, a cashier's check is issued to the State and the original payee. This is an exception process as previously requested by the State.

8.3.4 STATE AGENCY CONTINGENT CHECKING ACCOUNTS

Contractor shall offer separate checking account services to various State Agencies upon approval of the State Controller’s Office. These services shall include separate reconciliation and check stock for each account. The check stock shall be provided to the State by the Contractor’s preferred provider. The State shall receive the same check stock pricing as the Contractor.

Contractor shall be able to aggregate the balances of these accounts with the cash concentration account for the monthly analysis and calculation of compensating balances.

8.3.4 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.3.14”

8.3.5 CASHING OF STATE ISSUED CHECKS

Contractor shall cash any State-issued check presented by a Payee with the proper identification.

Identification may include one or more of the following:

• Driver’s License

• State of Wisconsin ID Card

Milwaukee County ID Card

8.3.5 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.3.5"

U.S. Bank does comply with the following clarification:

Milwaukee County IDs are not available as a form of identification.

8.3.6 DECISION OF POSITIVE PAY EXCEPTIONS

Contractor’s system shall provide daily positive pay decision items and images to the State each business morning on the day following presentment.

8.3.6 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.3.6"

8.3.7 NIGHTLY BATCH FILE TRANSFER OF CHECKS ISSUED AND CANCELLED

Contractor shall be able to accept checks issued and canceled files transmitted by the State, and update the bank's systems so that the information is available for bank tellers by the opening of business by the next business morning (includes Saturday).

8.3.7 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.3.7"

8.4 ELECTRONIC FUNDS TRANSFER

8.4.1 ACH TRANSACTIONS

• Contractor shall act as the State’s Originating Depository Financial Institution (ODFI) and Receiving Depository Financial Institution (RDFI) and shall originate and receive ACH transactions per NACHA Operating Rules.

• Contractor shall provide a daily electronic report of all ACH returns. ACH returns shall be identified at the application level (i.e. Income Tax Refunds for the Department of Revenue, payroll, etc.).

8.4.1 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.4.1"

8.4.2 RECORD FORMATS

Contractor shall be able to initiate and receive the following payment formats:

• ACH-PPD

• ACH-CCD

• ACH-CCD+/Vendor Express

• ACH-CTX

• EDI-ANSI ASC X12

• IAT

8.4.2 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.4.2"

8.4.3 DEPARTMENT OF REVENUE ACH REQUIREMENTS

Contractor shall provide for receiving multiple CCD+ ACH-debit transmissions from the State between the hours of 3:00 p.m. and 5:00 p.m. CT. These transmissions shall be processed through the ACH network for settlement in the State’s account by 8:00 a.m. CT on the following business day.

Contractor shall provide for receiving multiple CTX ACH-credit transmissions from the State after 10:00 p.m. These credit transmissions shall be processed through the ACH network for settlement in the State’s account by 8:00 a.m. the following business day.

Contractor shall provide daily files to the Department of Revenue no later than 4:00 a.m. each business morning for posting to their taxpayer system:

• All ACH-Credit and ACH-Debit payments received.

• All returned incoming tax payments (NSF, account closed, stop payments, etc.).

• All returned outgoing tax refund payments, cannot locate account, account closed, etc.).

8.4.3 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.4.3"

U.S. Bank can comply for receiving multiple CTX ACH-credit transmission from the State after 10 p.m. CT.

Examples for clarification:

Files submitted by 10:30 p.m. CT on Monday will be processed same-day and funds settled by 8 a.m. CT on

Tuesday.

Files submitted after 10:30 p.m. CT Monday will be processed Tuesday and funds settled by 8 a.m. CT on

Wednesday.

8.4.4 ONLINE SYSTEM

• Contractor shall provide an online method of entering ACH (debit and credit) transactions with appropriate security for multiple Agencies and users.

• Contractor shall provide a current day ACH report no later than 7:30 am.

• Contractor shall provide a downloadable file of prior day detailed ACH activity.

8.4.4 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.4.4"

8.4.5 AUTOMATED CLEARING HOUSE FILE CONFIRMATIONS (ACH FILES)

Contractor shall provide a service that confirms that ACH Files transmitted by the State to the Contractor have been received and processed.

8.4.5 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.4.5"

8.4.6 INTERACTIVE VOICE RESPONSE (IVR) SYSTEM TO PHONE-IN DEPOSITS

• Contractor shall provide an IVR service where DOT Service Centers shall periodically phone-in deposit amounts for their local bank accounts. Based on the amounts phoned-in, the Contractor shall create ACH-debit transactions which shall transfer the amount to the DOT bank account at the Contractor.

• Contractor shall provide a report of the amounts phoned-in for DOT’s reconciliation purposes.

8.4.6 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.4.6"

8.4.7 WIRE TRANSFERS

• Contractor shall be able to initiate and receive wire transfers.

• Contractor shall be able to receive from the State and process outgoing repetitive wire transfers for settlement on a same day basis.

8.4.7 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.4.7"

8.4.8 ONLINE INITIATION OF WIRE TRANSFERS

• Contractor shall provide an online method of entering wire transfer transactions with appropriate security for multiple Agencies and users.

• Contractor shall provide a downloadable file of wire transfer activity for same day and prior day activity that includes detail information about each wire.

8.4.8 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.4.8"

8.4.9 NOTIFICATION OF INCOMING WIRE TRANSFERS

• Contractor shall receive and immediately credit the State’s account for incoming wire transfers.

• Contractor shall provide the ability to access current day wire activity detail information online.

8.4.9 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.4.9"

8.5 E-PAYMENT GATEWAY

8.5.1 SERVICE OVERVIEW AND GENERAL REQUIREMENTS

Contractor shall provide an Electronic Payment Gateway Service (“E-Payment Gateway”), that they host and manage at their location using the technical model described below. The E- Payment Gateway shall accept credit/debit card payments (Visa, MasterCard, American Express and Discover) and ACH payments, to be made via the web, interactive voice response, mobile devices, and by the State’s Customer Service Representatives. The E-Payment Gateway shall provide an integration interface that allows the State to adopt future Contractor solutions without impacting existing State E-Payment applications integrated with this interface.

Currently the DOA - State Controller’s Office and the Division of Enterprise Technology support the implementation of E-Payment Gateway applications through the Enterprise Banking Services provider. During FY 2018, the State accepted 4.3 million e-payments under 142 E-Payment Applications - payment volume does not include approximately 2.7 million convenience fee transactions (a table showing the current production E-Payment Gateway applications used by Wisconsin State Agencies can be found in Appendix D, E-Payment Gateway Transaction Volumes).

In addition, approximately 100 Wisconsin local governments accepted an estimated .8 million payments under the Enterprise Contract through Participation Agreements that they signed with the Provider to receive the State’s services and pricing.

The E-Payment Gateway shall allow the State to establish a unique E-Payment application for each Agency/program that requires online payments. Each individual E-Payment application shall provide a daily settlement deposit to a bank account of the State’s choosing.

The E-Payment Gateway shall provide ability to migrate existing web applications to the new platform with minimal impact to State E-Payment applications.

The number of online payments received by State Agencies grew by an average rate of 15% annually over the last 5 years. However, the State provides no guarantee that such growth shall continue, or that the number of participating local governments shall remain consistent throughout the life of the Contract. The resulting Contract from this RFP is a mandatory Contract for State Agencies, and they are required to use it unless there they have a business need that cannot be met.

STATEWIDE PORTAL PROVIDER

The State is currently under Contract with NIC which operates under the name of Wisconsin Interactive Network (WIN) to provide statewide Portal services for Agencies to use in establishing additional e-commerce applications. The Statewide Portal Provider is required to utilize the E- Payment Gateway procured through this Enterprise Banking Services RFP for all State of Wisconsin e-commerce applications that require online payment.

8.5.1 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.5.1"

8.5.2 CONVERSION OF EXISTING STATE APPLICATIONS

Contractor shall be able to convert the State’s existing E-Payment Gateway applications to the Contractor’s E-Payment Gateway within 6 months of the Contract signing. Upon Contract award, the Contractor shall provide a plan to the State for converting the State’s applications to the Contractor’s E-Payment Gateway. Contractor shall work directly with the State Agencies to convert the applications. The Wisconsin State Controller’s Office shall approve new merchant accounts and bank accounts.

8.5.2 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.5.2"

8.5.3 COMMUNICATION PROTOCOLS

Payer to Contractor

Communication of data between the Payer and the Contractor shall be supported over https, strongly encrypted.

Biller to Contractor

Contractor shall support the following file transfer protocols:

• sftp (secure ftp) via SSH

• Download via https on the administration site

The Contractor shall support strongly-encrypted https for inbound and outbound communications.

The communication protocols shall apply whether the Contractor initiates contact with the Biller or vice versa. The protocol support shall be configurable at the level of the Biller application.

Some applications may require simultaneous support of multiple protocols.

8.5.3 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.5.3"

8.5.4 E-P AYMENT GATEWAY TECHNICAL MODEL

Contractor shall provide a technical model where the Biller hosts the storefront pages and the Contractor hosts the payment page(s). The technical steps in this model are as follows:

1. Payer may be authenticated at the Biller’s Website.

2. Payer enters appropriate information on Biller-hosted storefront pages in preparation for making a payment attempt.

3. Biller responds to Payer with a page containing session variables (e.g. invoice/order #, Biller ID, etc.) that may be transmitted by Payer to Contractor.

4. Payer requests the Contractor-hosted payment page(s), transmitting the session variables in the request. If this is the Payer’s first payment attempt at the Contractor’s Electronic Payments Website, the Payer may be required to provide Registration data and select a Username and password. This Registration requirement shall be configurable at the level of the Biller application.

5. The Payer shall also have the option to enter their Username and password if they have registered previously.

6. Once the Payer’s credit/debit card or bank account information has been entered, it shall be passed to the Merchant Processor for Authorization or the bank RTN shall be validated.

7. Authorization/RTN results are received by the Contractor.

8. Payer is presented with a confirmation number or a transaction failure message. The

Contractor also presents access (links and/or buttons), as necessary, back to Biller's site.

9. The Biller may elect to receive Real-Time payment success or failure messages to be passed from the Contractor to the Billers web application in Real-Time. The payment success/failure messages shall be sent via http or https in XML or URL encoded formats.

8.5.4 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.5.4"

Item 9: Our standard Real Time Notification service is Webhook-based; we are unsure if this is what the State means by “URL encoded.” We find many of our clients prefer Webhook technology to XML or URL encoded formats.

8.5.5 CREDIT/DEBIT CARD PAYMENTS

Contractor shall provide a set of standard payment page templates for Registration, Authorization, payment scheduling and confirmation. The Biller shall be able to place customized text messages on the payment pages and shall be able to include the State’s E-Payment top banner on each page. Real-time communications shall be used for Authentication, enrollment, Authorization, payment scheduling and confirmation of each transaction. All payment screens shall provide a URL link that shall allow the Payer to view the Biller’s privacy policy. The Contractor-hosted credit/debit card payment pages shall accept data from the Biller’s Web application. The Contractor shall allow the Biller to push up to 20 custom data elements to the E- Payment Gateway through Session Transfer Variables and XML. Session Transfer Variables shall be passed in an encrypted https POST method from the Biller Website to the Contractor’s payment site. The Biller shall have the option of displaying all or none of the custom data elements on the payment pages.

Contractor’s credit/debit card payment pages shall collect the appropriate information from the Payer to create the Authorization request to the Merchant Processor. The Biller may choose whether to invoke Address Verification Service (AVS) or Card Verification Data (CVD), where data entry for zip code and the CVD digits shall appear on the page.

The E-Payment Gateway shall not require that PCI data come in contact with the State’s environment for any length of time.

The E-Payment Gateway shall provide support for Level 3 Data for credit/debit card transactions.

This would enable additional detail to be passed through the settlement process to the end customer.

The State shall be the Merchant of Record and shall own all Merchant IDs.

8.5.5 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.5.5"

8.5.5.1 PAYER AUTHENTICATION

The Biller shall have the option to pass any Payer Authentication information collected by the Biller to the E-Payment Gateway through a Session Transfer Variable or XML along with the payment amount and due date. Contractor's E-Payment Gateway describes multi-factor

Authentication methods by, Biller application, to authenticate the Payer.

8.5.5.1 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E – 8.5.5.1"

8.5.5.2 INITIATE AUTHORIZATION REQUEST TO THE MERCHANT PROCESSOR

After collecting the necessary payment information, an Authorization request shall be sent to Merchant processor.

Authorization success or failure with the appropriate failure code shall be received back from the Merchant Processor.

8.5.5.2 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT B - 8.5.5.2"

8.5.5.3 REAL-TIME RETURN OF PAYMENT RESULTS TO THE BILLER WEB APPLICATION.

Contractor shall return the confirmation data below to the Biller. The Biller shall have the option to receive the Authorization results through a Real-Time XML or URL-encoded file upon the event of the Payer clicking the confirm button for the payment. At a minimum, the following data shall be included in the file:

• Transaction confirmation ID

• Biller E-Payment Gateway application code

• Payment amount

• Convenience fee

• Payment effective date

• Amount due

• Due date

• Transaction mode (sent, return, refund)

• Any product parameters sent in the session transfer or collected from the Payer

8.5.5.3 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.5.5.3"

8.5.5.4 PROCESSING OF SPECIAL TRANSACTIONS

Billers shall be able to manually enter credit and debit card Authorization requests for orders received by mail, telephone, or fax through an Administrative Site. Billers shall be responsible for authenticating those Payers who call, mail or fax, and for safe-storing the documentation to support the Authorization of payments.

8.5.5.4 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.5.5.4 "

8.5.5.5 PAYER CONFIRMATION SCREENS/EMAIL

Payer shall be presented with detailed payment information to be verified before processing the payment. Only valid payments shall be presented for verification (the Bank RTN numbers have been successfully checked or credit/debit card numbers have been successfully authorized).

Payer may choose to receive a confirmation e-mail. Upon clicking the Confirm button, Payers shall be presented a printable confirmation page that shall include a confirmation number.

Payer confirmation screens shall be customizable for each application to allow the display of product parameter data entered by the Payer or passed in the session transfer. Any of the data elements interfaced may be included on the confirmation page. In addition, a customizable instruction field shall be available near the top of the confirmation page. The field shall be customizable at the application level to include additional Payer instructions.

8.5.5.5 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.5.5.5"

8.5.5.6 RESPONSE TIME

Contractor shall release a payment success or failure response from its Web server within an average time not to exceed 2 seconds from the time the payment Authorization request is received by the Contractor to the time the response is released by the Contractor (excluding delays caused by the Merchant Processor). Contractor shall provide RTPC replies within 10 seconds of detection.

8.5.5.6 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.5.5.6"

For customer facing applications/web consoles Supplier will use reasonable efforts to maintain an application response time of five seconds or less for all presentment and payment transactions from the time they arrive at Supplier’s firewall until Supplier delivers response back to the firewall, excluding the time that Supplier is waiting for a response from a third-party system not under its control (e.g., if Supplier responds to a transaction in five seconds, but three of those seconds are due to waiting for additional information from a card processing system, then the response time for such transaction is two seconds).

8.5.5.7 DUPLICATE PAYMENTS AND PAYMENT STATUSES

Contractor shall provide safeguards that prevent duplicate payments from occurring. Clicking the “Back” or “Submit” buttons inappropriately and other similar scenarios that might produce a duplicate payment shall be eliminated. Contractor shall track all payments that are initiated but the Authorization is denied, along with the reason code. Contractor shall provide RTPC replies which include duplicated payment and Authorization denials.

8.5.5.7 RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.5.5.7"

8.5.5.8 DEPOSIT OF SETTLED TRANSACTION AMOUNT TO BILLER’S BANK ACCOUNT

For Visa, MasterCard and Discover transactions authorized no later than 11:59 p.m. C.T., the Contractor shall provide settlement to the Biller such that the proceeds from the charges and credits are deposited through the Automated Clearing House into the Biller’s bank account the next business morning.

8.5.5.8 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.5.5.8"

8.5.5.9 EMAIL CONFIRMATION

If a Payer requested a confirmation via e-mail message or has entered an e-mail address as a registered Payer, the Contractor shall send a confirmation an e-mail message to the Payer within 2 minutes of the completion of the payment transaction. The email shall reference the name of the Biller E-Payment application, the confirmation number and other E-Payment application parameters as determined by the Biller. In addition, an e-mail message shall be sent to the Payer if the payment is subsequently returned for any reason.

8.5.5.9 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.5.5.9"

8.5.5.10 SUPPORTED INTERNET BROWSERS

Contractor’s Electronic Receipting Service shall support and test against a range of Internet Browsers. At Contract execution, the following browsers are supported for both Windows and Macintosh Operating Systems:

• Microsoft Internet Explorer

• Microsoft Edge

• Safari

• Mozilla Firefox

• Google Chrome

Contractor shall ensure that the E-Payment Gateway is compatible with these browsers at all times. If the Contractor determines that it is no longer feasible to support one of these browsers, it shall notify the State at least 90-Days prior to discontinuing E-Payment Gateway support.

8.5.5.10 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.5.5.10"

8.5.5.11 COMPLIANCE WITH CREDIT/DEBIT CARD OPERATING RULES

Contractor shall, at its sole expense, perform the necessary maintenance and upgrades to ensure that the E-Payment Gateway is compliant with all credit/debit card operating rules.

8.5.5.11 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.5.5.11"

8.5.6.1 E-CHECK PAYMENT PAGES

Contractor shall provide a set of standard payment page templates for Registration, Authorization, payment scheduling and confirmation. The Biller shall be able to place customized text messages on the payment pages and shall be able to include the State’s E-Payment top banner on each page. Real-time communications shall be used for Authentication, enrollment, Authorization, payment scheduling and confirmation of each transaction. All payment screens shall provide a URL link that shall allow the Payer to view the Biller’s privacy policy. The Contractor-hosted e-check payment pages shall accept data from the Biller’s Web application.

The Contractor shall allow the Biller to push up to 20 custom data elements to the E-Payment Gateway through Session Transfer Variables and XML. Session Transfer Variables shall be passed in an encrypted https POST method from the Biller Website to the Contractor’s payment site. The Biller shall have the option of displaying select custom data elements on the payment pages.

Once the required payment information has been entered, NACHA regulations require the Payer to accept the terms and conditions including Authorization of the payment transaction via the ACH network. Once the terms and conditions are accepted, the Payer is taken to the “Payment Verification” page where they shall be required to confirm the payment information prior to processing.

Payer shall also have the opportunity to cancel the payment prior to processing, lessening the risk of payment errors. If the Payer wishes to cancel the payment, he or she shall be able to do so by selecting a cancel payment button and E-Payment gateway shall provide a message indicating no payment has been made. The customer is then returned to the main page provided by the State of Wisconsin.

If a Payer attempts to make a payment and the RTN comes back invalid an error message shall be displayed indicating that the correct bank account information shall be entered.

8.5.6.1 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.5.6.1"

8.5.6.2 PAYMENT INSTRUCTIONS

Contractor shall allow the following options for payment instructions (options shall be configurable at the E-Payment application level):

• Accept the payment amount from the Biller-hosted web application;

• Allow the Payer to specify the amount and date of the payment;

• Allow the Payer to edit scheduled payments up until one business day before the settlement date;

Allow the Payer to make one payment for multiple bills (assumes that when and if the payment amounts are passed to the Contractor from the Biller’s website through a session variable, each shall contain a unique identifier).

8.5.6.2 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.5.6.2"

8.5.6.3 NON-RECURRING PAYMENTS

Contractor shall support user Authorization of online, non-recurring payments by requiring the authenticated Payer to accept the online Terms and Conditions. Authorization shall be displayed for the Payer during payment initiation and the Payer shall authorize the transaction by clicking an

Accept button before a payment can be processed.

8.5.6.3 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.5.6.3"

8.5.6.4 RECURRING PAYMENTS

Contractor shall support user Authorization of online recurring payments by requiring the authenticated Payer to accept the online Terms and Conditions. Authorization shall be displayed for the Payer during payment initiation and the Payer shall authorize the transaction by clicking an Accept button before a payment can be processed.

8.5.6.4 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.5.6.4 "

8.5.6.5 DAILY PROCESSING CUT-OFF TIME AND SETTLEMENT

All ACH payments initiated by the Payer by 8:00 p.m. Central Time shall be credited to the Biller’s bank account between 5:00 a.m. – 9:00 a.m. the next business morning and shall be considered collected funds at that time. Debit transactions shall be posted at the end of the business day and shall also affect the collected balance for that day.

Contractor shall issue a warning message to the Payer if the Payer attempts to schedule a payment for a settlement date that is past the bill due date, or on weekends, federal, or State holidays. This assumes the Payer has elected to allow late payments.

8.5.6.5 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.5.6.5”

8.5.6.6 ACH RECORD FORMATS

Contractor shall create ACH Files in either the CCD format or the WEB Standard Entry Class (SEC) code, depending on the entity making the payment.

Contractor shall provide the following additional file formats:

• NACHA PPD

• TEL

8.5.6.6 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.5.6.6”

8.5.6.7 BANK RETURNS AND ACH REJECTS

Contractor shall provide services to automatically redeposit, one time, all transactions returned for insufficient or uncollected funds. A report of all redeposited transactions shall be available through the Contractor’s information reporting services and data transmission. The transaction shall be posted to the Biller’s settlement account only if it is returned a second time.

Contractor shall help Billers handle returned items. ACH return items are matched on a combination of the trace number, receiving financial institution routing/transit number, credit versus debit transcode, dollar amount and account number. If one of these fields does not match, the Contractor’s return item reporting shall provide the return as received and the originated information that differs from the return. Any unmatched returns shall be reviewed and settled to the Biller’s settlement account. Contractor shall provide an electronic report of all unresolved returns.

8.5.6.7 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.5.6.7"

8.5.6.8 FRAUDULENT TRANSACTION DETECTION METHODS

Contractor shall offer Payer Authentication at the Contractor’s Website. Once a Payer registers, on subsequent visits, the Payer Authentication sent during the session transfer is verified against the Payer Authentication saved in the Payer’s Registration.

Contractor shall provide the ability for the Biller to regularly transmit encrypted, Authentication data (i.e. User ID’s and Passwords) for loading into the E-Payment Gateway, so that Payer’s may be automatically logged in.

8.5.6.8 EXCEPTION: RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT E - 8.5.6.8"

8.5.6.9 VALIDATING A PAYER’S ACCOUNT NUMBER STRUCTURE AND ROUTING NUMBERS

Contractor shall verify the Payer’s routing number at the time it is entered into the payment transaction. The routing numbers shall be verified by a mod 10 check and Thompson check.