RFP No. Doc2269316678 Addendum 2.pdf

Procurement Services City Operations City of Portland, Oregon

@PortlandGov portlandgov

PortlandORGov

August 6, 2026

ADDENDUM NO. 2

RFP No. Doc2269316678

FOR

Merchant Services and Payment Gateway Services

Bids or Proposals Due: August 17, 2026, 4:00 p.m. Pacific Time

This Addendum provides changes to the specifications for the above-entitled project to be considered by each respondent. This Addendum shall be included within the proposal. Any changes made by this Addendum to said specifications offset only the portion of the words or paragraphs specifically mentioned herein, and the balance of the specifications remain in full force. It is the responsibility of all respondents to conform to this addendum.

This Addendum shall respond to inquiries received.

The following Inquiries were received regarding RFP Doc2246180914:

1. Settlement and ORS 295. The solicitation requires that title to all City funds remain in the

City's possession at all times and that funds be FDIC-insured or collateralized in accordance with ORS 295. Please clarify how the City intends this to apply to the merchant acquiring flow?

a. Does the City require net settlement to be originated by the acquiring bank directly into a City-owned account at the City's own qualified public depository, with no intermediate or omnibus account in the funds flow?

b. Must the acquiring or sponsoring bank itself be a qualified public depository registered under ORS 295, or does that requirement attach only to the depository holding the City's operating account?

c. Are settlement structures in which funds are held briefly in a provider-owned or jointly-held settlement account before disbursement to the City acceptable under any circumstances?

Response: The city requires gross settlement of the transactions. Our preference is the fund to be settled to the city-owned bank account. b. Yes. The acquiring bank must be a qualified public depository registered in Oregon. c. No. The settlement bank account must be owned by the city. (held in the city’s name and tax ID). The City of Portland must be Merchant of Record.

Sylvester Donelson, Jr. Tracy Warren Raymond C. Lee III Chief Procurement Officer Deputy City Administrator Chief Administrative Officer https://twitter.com/PortlandGov https://www.instagram.com/PortlandGov/ https://www.facebook.com/PortlandORGov

2 Merchant of record and service structure. The solicitation states the City is merchant of record for all transactions. Please confirm whether the City will accept a proposal in which the proposer is the payment gateway and service provider, with card acquiring, sponsorship, and settlement provided by a disclosed registered ISO/MSP and its sponsoring member bank, with the City holding its own merchant identification numbers and remaining merchant of record throughout. If so, is the gateway provider permitted to serve as prime contractor with the acquiring partner disclosed as a subcontractor?

Response: The city’s preference is for a direct relationship with the payment processor.

3. Compliance documentation. FIN-2.17 requires designated agents to maintain a current Attestation of Compliance. Where the prime contractor is the gateway provider and acquiring is performed by a disclosed partner:

a. Will the City accept the acquiring partner's PCI DSS AoC and SOC 1 / SOC 2 Type II reports for the acquiring and settlement scope, together with the prime's own attestations for the gateway scope?

b. Must the prime contractor independently hold a SOC 2 Type II report at time of proposal, or is a current PCI AoC plus a documented SOC 2 roadmap acceptable?

Response: All environments that capture, process, store, and transmit PCI Cardholder Data (PCI DSS CHD) must attest to PCI DSS standard and policy, and must always maintain compliance.

Without seeing primary, secondary, or third-party components in the RFP, formal sign-off is not possible without diagrams and discussions.

An Attestation of Compliance (AOC), diagram including all parties and a roadmap with timeline for attestation will be required for production services to proceed.

4. Funding timing. Does the City require next-business-day funding, or is a later settlement schedule acceptable? Please state any minimum funding standard the City will hold the awarded vendor to.

Response: The city requires next-business-day funding from the day it is settled. Card payment is usually settled on the same day.

5. Pricing model. Does the City require the awarded vendor to propose absorbed-cost pricing on an interchange-plus basis, or will the City consider a payer-funded convenience fee or service fee model for some or all payment channels? If convenience fees are permitted, please identify any City policy or Oregon statute governing their use.

Response: The city’s preference is absorbed-cost pricing on an interchange-plus basis to be able to know how much of each sale goes to actual interchange fee and your markup.

We have a merchant- managed service convenience fees model and Merchant Services provider-managed convenience fees model. We would like to have both options available.

6. References. For the required references, will the City accept references from the proposer's acquiring or technology partner where the proposer's role in that engagement is clearly stated, in addition to the proposer's direct references?

Response: Yes, both are acceptable.

7. Payment locations and devices. Please confirm the number of in-person payment locations and the approximate number of payment devices required, and whether the City has existing device preferences or standards beyond the PTS validation and point-to-point encryption requirements in FIN-2.17 and FIN-2.10.04.

Response: There are approximately 50 sites. The city requires approximately 216 devices.

Please refer to Attachment 4.

8. Reconciliation and integration. Please identify the City's financial system of record and the required format for daily settlement and reconciliation files, along with any existing bureau applications the gateway must integrate with.

Response: The City’s Enterprise Resource and Planning (ERP) system is SAP. It depends on applications, but the city uses CSV, XLSX, TXT and PDF files. CSV or XLSX files should be available used to reconciliation purpose.

9. Volumes. Please confirm current annual card and ACH volumes and transaction counts by channel, and any figures the City wishes proposers to use as the basis for cost proposals.

Response: Please see attachment 1a – Merchant Services Description (including E-check).

10. Process. Please confirm the deadline for submitting proposer questions, the date the City expects to publish responses, and whether the City intends to hold a pre-proposal conference or permit clarification discussions with prospective proposers. If any such discussion is permitted under the solicitation's contact rules, we would welcome the opportunity to participate.

Response: Per the RFP Information Packet:

Mandatory Pre-Proposal Meeting:

There will be a pre-proposal meeting scheduled for this RFP on June 17, 2026 at 10:00 am Pacific Time via Microsoft Teams.

Attendance is mandatory; Proposal submission will be contingent upon attendance at this meeting.

You must RSVP to Mark Ariza via email at mark.ariza@portlandoregon.gov to receive confirmation and meeting login information

Send questions, requests for clarification, or requests for assistance by seven (7) calendar days before August 17, 2026, by 4:00 p.m. Pacific Time. Any questions received after this date may not be answered. Only the Single Point of Contact can answer questions about this RFP.

mailto:mark.ariza@portlandoregon.gov

11. Please provide your EMV use cases.

Response: The city offers EMV chip card support (including contactless Tap-to-Pay) through terminals. In-person payments with EMV-compliant terminals are available to payments for utility bills, permits, inspections, parking tickets and taxes.

12. Please provide your Pay-by-text use cases.

Response: “You can pay your sewer, stormwater, and water bill by text message. Log in to your account to sign up for Pay by Text.

Once you're signed up, you'll receive a text message each time your bill is ready. The text message will come from the City of Portland or from Invoice Cloud, our payment processor. The message will include the bill amount, the due date, and a prompt to reply "OK" to pay with your saved payment method. When you reply "OK," your payment will process. You'll get a receipt by text message.

The original text expires after two hours. If you reply after two hours, the system will send you a new text and you'll need to reply "OK" again to pay.

Pay my bill | Portland.gov”

13. Please provide your QR codes use cases?

Response: SmartPark (parking facilities) provide QR codes payments.

14. Please provide your Level 2 and Level 3 payments use cases?

Response: We use Level 2 and Level 3 for high-dollar value locations such as Portland Permitting & Development (PPD).

15. Please provide your IVR payments use cases?

Response: Water Bureau - water/sewer bills. Portland Permitting & Development (PPD) -permit fees

16. Please provide your use cases for phone payments (IVR, Agents, etc.)?

Response: Customer Service Center receive phone calls and transfer to IVR to complete the payments. The following bureaus are using the process. Revenue Bureau - taxes, Water Bureau - water/sewer bills. Portland Permitting & Development (PPD) - Permit Fees, Portland Parks and Recreation - class fees.

17. Regarding 3.4 Payment Gateway Services https://css.portlandoregon.gov/css/public/login https://css.portlandoregon.gov/css/public/login https://www.portland.gov/water/customer-service/pay-your-utility-bill#toc-pay-online-and-other-ways-to-pay

a. What is meant by Omnichannel transaction support

b. Please clarify the meaning of this requirement: be “payment gateway processor agnostic.”

Response: Allowing customers to complete transactions seamlessly across multiple channels that include physical card present location, website/webpage, mobile app and phone payment via IVR. b. We are seeking a gateway service that can integrate with the City’s existing third-party vendor system and software. Our goal is to process transactions through the payment processor/s chosen through this RFP.

18. The RFP notes the City presently transmits Level 3 Commercial Card data. Level 3 data

(line-item detail, tax amount, customer/PO reference, product/service codes).

For each City bureau/system currently transmitting Level 3, are those same data elements going to continue to pass through unchanged during migration?

Response: Yes. The city would like to continue passing through Level 3 data to benefit from reduced interchange rates (Commercial Card Optimization savings).

19. Is there any additional bureau channels not currently capturing Level 3 data today vs others that are? If so how many are not capturing level 3?

Response: The city is currently capturing Level 3 data on about 44 MIDs.

20. The Water Bureau uses Invoice Cloud today:

a. Are these transactions in scope for the RFP?

b. Is the city looking to replace Invoice Cloud with a different Bill Presentment solution??

c. If the city is not looking to replace Invoice Cloud, would the City ask Invoice Cloud to use a third-party gateway that would allow the transactions to be processed by the awarded vendor? This is a significant part of the overall volume and its inclusion could affect pricing.

Response:

a. Yes, the Water Bureau transaction volumes are included in this RFP.

b. The scope of this RFP is for Merchant Services payment processing and not Bill

Presentment services.

c. Yes, the goal of this RFP is to have all Merchant Services (Acquiring) payments to be directed through the vendor/s who are awarded contracts through this solicitation.

21. In order to meet the following requirement, would the City deposit the processing volume into a bank account from the awarded processor/bank? “Settlements must be made directly to the City's Merchant of Record within one business day of the transaction as required by Oregon law (ORS 295).”

Response: Our preference would be to settle payments into the city’s existing primary bank account. We are open to considering settlement into another Oregon Qualified Public Depository bank account, if it is determined to be advantageous to the city.

However, we need to ensure that Public Funds are protected against loss at all times throughout the Merchant Services processing cycle. Therefore, funds need to be clearly held in the name and under the Tax ID number for the City of Portland. This is generally accomplished by having the City of Portland as the “Merchant of Record” on the transaction. The funds would also need to be clearly earmarked, partitioned or segregated in a manner which makes clear that the public funds in transit through the payment processing system belong to the City of Portland and not the processor, acquiring bank, Independent Sales Organization or other third-party.

22. Where are you looking to replace the Payment Gateway in regards to the Payment Gateway questions.

Response: Yes. The goal is to select a single vendor that provides Merchant and Payment Gateway services.

23. Lane 3000 are usually integrated into a point of sale system and would not need to be replaced, can the City confirm? It is our understanding that the Lane 3000 devices have officially reached it’s end of life. While it will remain supported by Ingenico with limited software updates and key injections, does the City plan to update these devices? If so, which device will be used?

Response: The city is open to updating devices as necessary. All equipment recommended for Lane 3000 should be able to be integrated with ActiveNet.

24. What all is included in the page limit? Can product attachments be added while not be included in the page count?

Response: Please see Section 8: Required Proposal Components in the column labeled “Included in page limit?”. A “Y” means it is included in the page limit, and an “N” means it is not included in the page limit.

25. Regarding RFP Doc2246180914 Attachment 4 - Total Overall Cost:

a. Line 13 Interchange – Interchange rates should be passed through at cost by each provider. Because interchange cannot be calculated without a complete merchant processing statement, we request clarification on this requirement. Please advise whether the City will remove this field or provide additional guidance on the specific information being requested.

Response: Please see Attachment 1. This document was provided to the participants who registered for the pre-bid meeting on 06/17/2026. Please contact Mark Ariza, Procurement Analyst at mark.ariza@portlandoregon.gov to obtain a copy of this document.

b. Line 14 Assessment / Network – Assessments and Network Fees should be passed through at cost by each provider. Because interchange cannot be calculated without a complete merchant processing statement, we request clarification on this requirement. Please advise whether the City will remove this field or provide additional guidance on the specific information being requested.

Response: Please see Attachment 1. This document was provided to the participants who registered for the pre-bid meeting on 06/17/2026. Please contact Mark Ariza, Procurement Analyst at mark.ariza@portlandoregon.gov to obtain a copy of this document.

c. Line 15 Processor Markup / Discount Rate - Please provide additional guidance on the specific information being requested.

Response: We are requesting that respondents provide the Discount Rate or Interchange-Plus pricing that is being proposed. The pricing should be based on the volume provided in Attachment 1. Please request a copy of Attachment 1 from Mark Ariza if you have not received it.

d. Line 22 "On-us" transactions - Please provide additional guidance on the specific information being requested.

Response: Please see Attachment 1a. These represent e-Check or ACH transactions.

e. Line 32 Online portal access - Is this referring to reporting or something else? Please provide additional guidance on the specific information being requested.

Response: This is online portal access for reporting and administrative functions.

f. Line 36 Wire Transfer – Is this referring to the deposit of fund via Wire over ACH deposit? Please provide additional guidance on the specific information being requested.

Response: This transaction type may not apply to all proposals. It is intended to facilitate manual fund transfers if necessary.

g. Line 37 Cross-border / international processing - Please provide additional guidance on the specific information being requested.

Response: This transaction type may not apply unless we have foreign transactions through e-check or ACH transactions. Foreign transactions are presently uncommon.

h. Line 38 Currency conversion markup – Does the City currently utilize currency conversion? Please provide additional guidance on the specific information being requested, including currencies and volumes.

Response: This transaction type may not apply unless we have foreign transactions through e-check or ACH transactions. Foreign transactions are presently uncommon.

i. Line 41 Commercial Card optimization savings - Please provide additional guidance on the specific information being requested. Are you referring to Level 2 and 3 optimization?

Response: Yes. Level 3 Commercial Card Data is presently being captured by the following Bureaus: Portland Permitting & Development (permits and inspections) and Revenue Division (business taxes, licenses, and related payments). The City would like to evaluate expanding Level 3 data capture capabilities to additional bureaus that may benefit from enhanced transaction detail and potential interchange optimization.

j. Are we allowed to add additional lines to Part 1 and Part 2?

Response: Yes, please include all fees or cost elements that may apply.

26 In regards to: Attachment 1”: Merchant Services Description”, can you please confirm if the

Debit transactions listed for the Water Bureau and Invoice Cloud are Pinless Debit or Visa/MC Debit processing as credit card transactions?

Response: Yes, this debit volume total includes all card payments (debit and credit).

27 Does the City of Portland leverage any other IVR or contact-center solutions, such as Twilio, Amazon Connect, or Genesys?

Response: The city is currently using IVR for the Water Bureau and Portland Permitting & Development. Water Bureau uses “Selctron” as a sub-contract IVR service provider.

Please direct all questions and concerns to Mark Ariza, Procurement Analyst at 503-823- 1885 or mark.ariza@portlandoregon.gov.

End of Addendum

Sylvester Donelson Chief Procurement Officer sd:ma

Mandatory Pre-Proposal Meeting: