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HomeMy WebLinkAboutPR 22452: APPROVAL OF A MERCHANT PROCESSING PARTICIPATION AGREEMENT WITH FIRST DATA MERCHANT PROCESSING f 1 t City of \ t"L A. n,-! rth u 1 Texas www.PortArthurTx.gov INTEROFFICE MEMORANDUM Date: 322/2022 To: The Honorable Mayor and City Council Through: Ron Burton, City Manager From: Kandy Daniel, Interim Director of Finance RE: PR No. 22452 Approval of a merchant processing participation agreement Introduction: Request approval for the City Manager to execute a merchant processing participation agreement with First Data Merchant Services (Fiserv) and Wells Fargo Bank. Background: The City currently accepts credit cards both in person and online for a number of different fees, including water utilities, municipal court, landfill, health department fees and others. Credit card fees have skyrocketed over the past few years. Cost to the City has risen over$100,000 in the past five years. This is due in part to more customers paying online and by credit card. With the conversion of the financial system, utilities, municipal court and development services to the Tyler ERP system, it has become necessary to make changes to the current processes. The City is currently utilizing several different merchant card services providers. and now wishes to consolidate into one merchant who can handle all of the City's needs as well as integrate with the Tyler systems. First Data Merchant Services LLC, a wholly owned subsidiary of Fiserv, Inc., holds the State of Texas Contract(#946-MI) for merchant card services. Wells Fargo is the sponsor bank utilized by First Data to clear transactions. By participating in the state contract, the City is able to take advantage of the extremely low pricing model which will save the City an average of 42%per year in credit card fees as well as other benefits. First Data/Fisery has a team dedicated to government clients who work to lower costs, secure transactions and improve back-office efficiency through a suite of merchant processing solutions. "Remember,we are here to serve the Citizens of Port Arthur" P.O.Box 1089 X Port Arthur,Texas 77641-1089 X 409.983.8101 X FAX 409.982.6743 I , __. Cityof . , , ..., ort rtl:u4 ��r `_ Thruc www.P o rtA rt h u rTx.gov Budget Impact: Funds are available in the Finance Department credit card account no. 001- 07-015-5425-00-10-000. Recommendation: The attached Proposed Resolution No. 22452 authorizes the City Manager to execute a merchant processing participation agreement with Fiserv/First Data. We recommend that the City Council approve it as presented. "Remember,we are here to serve the Citizens of Port Arthur" P.O.Box 1089 X Port Arthur,Texas 77641-1089 X 409.983.8101 X FAX 409.982.6743 P. R. NO. 22452 KD: 3/22/2022 RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A MERCHANT PROCESSING PARTICIPATION AGREEMENT WITH FIRST DATA MERCHANT SERVICES, LLC, A WHOLLY OWNED SUBSIDIARY OF FISERV, INC AND WELLS FARGO BANK FOR A TWO-YEAR PERIOD THROUGH TEXAS SMART BUY CONTRACT NO. 946-M1, WITH AN ANNUAL PROJECTED BUDGETARY IMPACT OF $275,700.00. FUNDS ARE AVAILABLE IN THE FINANCE DEPARTMENT ACCOUNT#001-07-015-5425-00-10-000. WHEREAS, the City currently accepts credit cards both in person and online for a number of different fees, including water utilities, municipal court, landfill, health department fees and others; and WHEREAS, credit card fees have skyrocketed over the past few years; and WHEREAS,the cost to the city has risen over$100,000.00 in the past five years due to more customers paying online and by credit card; and WHEREAS,with the conversion of the financial system, utilities municipal court and development services to the Tyler ERP system, it has become necessary to make changes to the current process; and WHEREAS,the city is currently utilizing several different merchant card services providers and now wishes to consolidate into one merchant who can handle all of the City's needs as well a integrate with the Tyler systems; and WHEREAS,pursuant to Chapter 271, Subchapter D, of the Local Government Code, a city may participate in cooperative purchasing programs established by the State Facilities Commission for the purchase of goods or services at prices established through purchase contracts of the Commission; and WHEREAS,the Finance Department has reviewed the costs and determined that it is most cost effective to participate in the Texas Smart Buy State contract# 946-M1 for merchant card services; and WHEREAS, State of Texas Smart Buy Contract through First Data Merchant Services, LLC provided a proposal attached as Exhibit"A which meets our specifications. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: THAT the City Manager of the City of Port Arthur is hereby authorized and directed to execute on behalf of the City of Port Arthur a merchant processing participation agreement between • the City of Port Arthur, First Data Merchant Services, LLC and Wells Fargo Bank,NA for a two-year period, as described in Exhibit "A"; and THAT a copy of said agreement is attached hereto and made a part hereof as Exhibit "A"; and, THAT a copy of the caption of this resolution be spread upon the Minutes of the City Council. READ,ADOPTED,AND APPROVED,this day of March,2022,A.D.,at a Regular Meeting of the City Council of the City of Port Arthur, Texas by the following vote: AYES: Mayor: Councilmembers: NOES: Thurman"Bill"Bartie, Mayor ATTEST: Sherri Bellard, City Secretary APPROVED . TO FORM: fla V.1 ze e ttorney422.4,10 AP°ROVED FOR ADMINISTRATION: Ron Burton, City Manager APPROVED FOR AVAILABILITY OF FUNDS: ki.J Kandy Dani , nterim Director o Finance EXHIBIT "A" PARTICIPATION AGREEMENT FOR PAYMENT SOLUTIONS This Participation Agreement for Payment Solutions ("PA") is entered into between the City of Port Arthur("Participant") and First Data Merchant Services, LLC ("FDMS" or"Provider") and Wells Fargo Bank,NA ("Bank") (Provider and Bank are referred to collectively as"Servicer"). WHEREAS, on March 25, 2020 the Texas Comptroller of Public Accounts awarded to Provider a statewide term contract(the"Agreement")to provide a variety of merchant credit and debit card processing services to eligible State political subdivisions; and WHEREAS, Participant is a State political subdivision entitled to enter into a Participation Agreement; and WHEREAS, Participant desires to subscribe to the services ("Subscribed Services") available under the Agreement as identified in this Participation Agreement; NOW THEREFORE, the parties to this Participation Agreement hereby agree as follows: 1. Servicer hereby agrees to provide the Subscribed Services to the Participant available under and pursuant to the terms and conditions of the Agreement, which are incorporated herein by reference. 2. Participant acknowledges receiving and reading the Agreement. Participant agrees to follow the procedures in and comply with the terms and conditions of the Agreement in connection with receipt of the Subscribed Services as the Company under the Agreement. 3. This Participation Agreement terminates as of March 31, 2023 or upon termination or expiration of the Agreement. 4. Any notice required or permitted to be given under this Participation Agreement by one party to another party shall be in writing and shall be given and deemed to have been given upon hand-delivery, or three days after being mailed by certified or registered mail with postage prepaid to the other party or its successor at the address as specified as follows: Participant: Name: City of Port Arthur Title: Address: 444 4th St, Port Arthur, TX 77640 Telephone: 409-983-8163 1 PARTICIPATION AGREEMENT FOR PAYMENT SOLUTIONS This Participation Agreement for Payment Solutions ("PA") is entered into between the City of Port Arthur("Participant") and First Data Merchant Services, LLC ("FDMS"or"Provider")and Wells Fargo Bank,NA("Bank") (Provider and Bank are referred to collectively as"Servicer"). WHEREAS, on March 25, 2020 the Texas Comptroller of Public Accounts awarded to Provider a statewide term contract(the"Agreement")to provide a variety of merchant credit and debit card processing services to eligible State political subdivisions; and WHEREAS, Participant is a State political subdivision entitled to enter into a Participation Agreement; and WHEREAS, Participant desires to subscribe to the services ("Subscribed Services")available under the Agreement as identified in this Participation Agreement; NOW THEREFORE,the parties to this Participation Agreement hereby agree as follows: 1. Servicer hereby agrees to provide the Subscribed Services to the Participant available under and pursuant to the terms and conditions of the Agreement, which are incorporated herein by reference. 2. Participant acknowledges receiving and reading the Agreement. Participant agrees to follow the procedures in and comply with the terms and conditions of the Agreement in connection with receipt of the Subscribed Services as the Company under the Agreement 3. This Participation Agreement terminates as of March 31, 2023 or upon termination or expiration of the Agreement. 4. Any notice required or permitted to be given under this Participation Agreement by one party to another party shall be in writing and shall be given and deemed to have been given upon hand-delivery, or three days after being mailed by certified or registered mail with postage prepaid to the other party or its successor at the address as specified as follows: Participant: Name: City of Port Arthur Title: Address: 444 4th St, Port Arthur, TX 77640 Telephone: 409-983-8163 1 Servicer: Name: Title: Address: Telephone: Any party may change the address to which notices are to be delivered by giving to the other party(ies)not less than ten(10)business days prior written notice thereof. 5. This Participation Agreement may be terminated by either Participant or Provider,by giving 30 days' advance written notice if the other experiences a bankruptcy event and it is not dismissed in 30 days. 6. This Participation Agreement may not be amended except by an instrument in writing signed by an authorized representative of Provider and the Participant. 7. The words or phrases not otherwise defined herein will have the same meanings ascribed to them in the Agreement. 8. This Participation Agreement is between Servicer and Participant and the respective successors and assigns of each of them. Signature page follows: 2 The parties hereto have caused this Participation Agreement to be executed by their duly authorized officers. THIS AGREEMENT IS NOT BINDING UPON SERVICER UNTIL SIGNED BY ALL PARTIES. FIRST DATA MERCHANT SERVICES, LLC By: (authorized signature) (printed name of person signing above) Its: (title of person signing above) Date: WELLS FARGO BANK,N.A. CITY OF PORT ARTHUR PARTICIPANT: By: By: (authorized signature) (authorized signature) (printed name of person signing above) (printed name of person signing above) Its: Its: (title of person signing above) (title of person signing above) Date: Date: 3 b • 11111o 1:11111. -4k 411 Merchant Processing Services Presented to: Port Arthur Submitted by: Richard Wallen MBA, Account Executive, Government Solutions 972-821-12951 Richard.Wallen@Fiserv.com February 25, 2022 Fisery Confidential RFP Response:Distribution restricted to Fisery and City of Winnsboro.©2020 Fiserv,Inc.or its affiliates. 255 Fisery Drive First Data Brookfield,WI 53045 fiserit 262-879-5000 www.fiserv.com 2/25/2022 Kandy Daniel Interim Finance Director City of Port Arthur Dear Kandy, To help you reduce costs and create a seamless payment environment for each public agency under the City of Port Arthur, First Data Merchant Services LLC, a wholly owned subsidiary of Fiserv, Inc. (herein referred to as Fiserv) proposes our robust solutions for your Merchant Processing Services. In 2019, Fisery finalized the acquisition of First Data. This enables us to provide unprecedented capabilities and value to our clients. The strength of our combined organization will empowers your public agencies to meet the growing demands as their needs evolve with agile, end-to-end merchant solutions. Fisery helps your public agencies engage the people they serve and enables them to overcome their current and future challenges with modern and secure payment technology. Public agencies can leverage the combined technology of Fisery and First Data to optimize their organizations. Our extensive merchant services capabilities and experience in the industry help you deploy payments strategies, products and services that can help you thrive in today's changing environment. We can help you create a frictionless payment environment and provide more value to your agencies with capabilities that allow them to: • Benefit from our Government and Higher Education Experience—Through our team dedicated to our government clients, we empower public agencies from the smallest municipalities to the federal government to lower costs, secure their transactions and improve back-office efficiency through a suite of merchant processing solutions. • Secure Every Transaction—Our wide range of security solutions completely remove valuable data from your payment environment to reduce your scope of PCI compliance and maintain the trust of your constituents. By selecting Fisery as your payments partner, public agencies will have access to a range of award- winning solutions, teams and platforms to support your continued growth while driving added value, delivering tangible benefits and providing insight/thought leadership. We look forward to working with you. Sincerely, Richard Wallen, Account Executive 972-821-1295 I Richard.Wallen@fiserv.com City of Port Arthur First Data Merchant Processing Services °°w fiseru. Table of Contents Executive Summary 5 Customer Service 14 Vendor Certifications 16 Products and Services 17 Full-Service Credit Card Processing Services 18 Security 19 Fraud 19 Reporting 20 Funding Time Frames 22 Equipment and Gateways Options 23 Pricing 26 City of Port Arthur First Data Merchant Processing Services fiSeru Executive Summary As a proven leader in the FinTech industry for several decades, we created next generation solutions like Clover POS devices, Least Cost Routing debit acceptance, insightful analytics, TransArmor Data Protection and hundreds of other products and services that enable businesses, governments and organizations to capitalize on the latest technology in commerce. Fisery is a global leader in payments and the FinTech industry across issuer processing, merchant acquiring and account processing. Through an incremental investment of$500 million over the next five years, we will focus on helping our clients solve their business challenges and make the most of the opportunities ahead. • #1 global issuer processor fiserv.• #1 global merchant acquirer • #1 global core account processing provider • #1 U.S. ACH and bill payment presentment provider • Thousands of financial institutions and millions of businesses supported in 100+ countries • Hundreds of millions accounts processed • More than 1 billion accounts processed • Billions of transactions facilitated daily • 35 years of FinTech leadership —the original FinTech With the enhanced capabilities of Fiserv, public agencies can build for the future and create customer experiences that are effortless, imaginative and innovative across your entire business. By inviting Fisery to join your team, public agencies will be among the first to deploy our next generation of innovations. In the past, we have worked alongside leading technology companies, including Google and Apple, to develop advanced payment technology to propel the industry forward. Through these collaborations, we helped develop solutions like Google Pay and Apple Pay, and became the first to enable merchants around the world to take advantage of these transformative technologies. As we look to the future, Fisery will support your business and keep you informed of changes that affect your business through: • Industry Thought Leadership: — Regular whitepapers, podcasts, master-class videos ©*References to Fisery throughout this response are deemed to refer to 5 Fisery Solutions,LLC or its affiliate that offers the stated product or service* City of Port Arthur First Data Merchant Processing Services TISON. — Industry-specific blogs focused on trends and industry expertise • Events and Conferences: — Speaking engagements at all events highlighting trends in the industry and inviting clients to appear with us in panel format to speak about their experiences — Bespoke events and conferences focusing on industry trends; digital advisory groups, and intimate fireside chats — Forum—annual event inviting clients to participate in educational sessions and peer groups • Webinars: — Monthly webinars discussing vertical specific trends with SMEs from internal resources and industry associations — Educational on-demand webinars focused on key Fisery solutions Through a long-term relationship with Fiserv, public agencies gain greater insight and control across the entire payment lifecycle. We redefine how people and governments move money and information. We understand the diverse requirements of governments, and we have the tools to help you succeed in the evolving landscape of payments. Benefit from our Government and Higher Education Experience From the smallest municipalities and townships to states and the federal government, our consultants and development staff are constantly improving government operations. We develop and implement the strategies that continually improve how revenue is collected and how programs are delivered across the country. Fisery has a long history of successful performance providing card issuing, payment processing and innovative payment solutions to high-profile government and commercial clients, including more than 250 public-sector federal, state and local agencies with complex, highly secure programs. Our industry-leading experience will help public agencies save money, increase revenue and grow trust with your constituents while improving their overall payment experience. Additionally, managed convenience fees offer government organizations and higher education institutions a way to eliminate the impact of Interchange fees. To properly qualify for this payment model, you must be registered for the Visa and Mastercard Higher Education and Government Program; otherwise, you could face legal issues or even lose your processing rights. Fisery works closely with Visa and Mastercard to manage the registration process for public agencies to simplify your qualification and avoid any errors or delays. Additionally, Fisery offers a "Managed" Convenience Fee model with all-inclusive pricing so you never have to deal with the convenience fee funds. This solution is managed by Fisery directly and offers one rate that covers Interchange, per transaction and other expenses included in merchant processing. We also offer devices that work with the "Managed" Convenience Fee model. These devices offer the convenience of one dip of the EMV chip and/or one swipe of the ©*References to Fisery throughout this response are deemed to refer to 6 Fisery Solutions,LLC or its affiliate that offers the stated product or service* City of Port Arthur First Data f Merchant Processing 1 ISGCU. Machin.ruarnrny faster than real time Transparent Results Fraud Detect's whitebox machine learning algorithms provide transparency into factors driving risk scores to reduce overall Fraud I rates and reduce false positives r•tt1eart Pert ormance Artificially intelligent algorithms that adapt to ^ ;) ;`7_:. Onin:•cnanael.017011 da,,t your business patterns and gets progressively I LILJ `o Works on any channel,any device, smarter to reduce your overall Fraud Rate through a multitude of internal and external data sources,Increasing your efficiency and Works at Big 'rata Scale �; ;; , reducing the complexity of managing your overall Fraud exposure Processes milhons of transadlonsfday wit er mdtiseconds without compromising accuracy J� Recogni es Customers,not Segments for performance I I Fraud Detect's Segment of One approach drives superior accuracy by continuously Deploys in Record Time profiling for every single customer Single environment for data modelling and __... ._� F or merchant runtime enables production deployment in 90 days vs.12 months Fisery supports 3-D Secure Authentication (Verified by Visa, American Express SafeKey, Discover, ProtectBuy) as well as EMV 3-D Secure, the EMVCo specification service which replaces these legacy 3-D Secure services for the global payment network brands. In addition to providing our own services on a direct basis, Fisery has partnerships with top global 3-D Secure providers and also supports the merchant's use of any third party 3-D Secure service. Why Choose Fisery With clients across nearly every industry, size and phase of their lifecycle, our experts have the knowledge to help you succeed now and in the future, no matter how big your organization grows or how much your goals change. As Fisery continues to invest in and rollout services to support ever-evolving commerce models it is our hope to demonstrate to you our leadership in digital payments. 5 Points of Differentiation for Fiserv, a proven leader in Global Digital Commerce Complete Visibility into Direct Global Powerful Unmatched Transparent, Payments Acquirer Relationships At- Enterprise Responsible Ecosystem Scale Solutions Partner We are the only We have direct Our reputation lets We have an We believe in Fin Tech company access, whereas, us advocate on unparalleled transparent who is an PSPs rely on your behalf solution suite for partnerships and acquirer, a third-party creating unique emerging keeping promises, network, and an providers, thus benefits. enterprise never risking your issuer processor. increasing eCommerce reputation. touchpoints. business needs. Fisery is much more than a payment processor. We enable the transactions of our everyday experience. With a full range of processing solutions supported by robust reporting options that put the information you need at your fingertips and innovation to grow in the future, Fisery will work with you to optimize your payment environment. ©*References to Fisery throughout this response are deemed to refer to 8 Fisery Solutions,LLC or its affiliate that offers the stated product or service' City of Port Arthur First Data Merchant Processing fiseri/ With one eye on the future, we maintain the other eye on the present. Fisery continues to be a leader in payments processing, leading the industry in debit for eCommerce, ACH processing, currency solutions, core card processing, and so much more. Our History For 35 years, Fisery has been a leader in financial services technology. Fisery was formed on July 31, 1984, through the combination of two major regional data processing firms located in Milwaukee, Wisconsin, and Tampa, Florida. These firms- Fisery Milwaukee and Fisery Tampa - began their operations in 1964 and 1971, respectively, as the data processing operations of their parent financial institutions. On January 16, 2019, Fisery and Fisery announced plans for the transformative combination of the two companies to create the preeminent global provider of payments and financial technology, and to redefine the way money and information moves for our clients in a rapidly changing world. Fisery was the largest merchant acquirer, issuer processor, and independent network services provider in the world, enabling businesses to accept electronic payments, helping financial institutions issue credit, debit and prepaid cards; and routing secure transactions between them. The combined company began operating, as Fiserv, on July 29, 2019. For more information on the rich history of Fiserv, please visit our website: https://www.fiserv.com/en/about-fiserv/our-history.html . We are a publicly traded NASDAQ with the ticker symbol "FISV". Those involved in the contract Members will be determined during the contract negotiation phase of the RFP process. Table 1 outlines the roles that will be assigned as well as each role's functional responsibilities. ©`References to Fisery throughout this response are deemed to refer to 9 Fisery Solutions,LLC or its affiliate that offers the stated product or service* City of Port Arthur First Data Merchant Processing useru. Table 1. Fisery Relationship Management Model for City of Port Arthur. A team of tenured professionals will support your merchant processing services. Title Functional Responsibilities National Relationship Your national relationship manager is responsible for: Manager Richard Wallen. • The strategic relationship and is the go-to person on a global Account Executive basis • Providing contract management • Answering rate/fee inquiries • Owning the holistic client relationship • Identifying new product or solution opportunities • Developing and leveraging strong, collaborative relationships • Conducting business reviews National Account Manager Your national account manager is responsible for: Assigned at contract award • Serving as the key point of contact for day-to-day operational activity • Meeting SLAs for new account setup • Escalating operational issues • Training clients with new tools/product offerings • Providing project management for strategic initiatives • Managing the client's profile information Contract Manager Your Contract Manager is responsible for: George Love, Director of Government Solutions • Administer and negotiating contracts • Review of contract terms and conditions • Provide understanding of payment card industry and government policies, regulations and legislation National Implementation Your Implementation Coordinator is responsible for: Coordinator Assigned at contract award • Program design and conversion • Administration and operation details • Budget and timeline management • Turn over to account team National Enterprise Sales Your Senior Sales Executive is responsible for: Executive • Remaining engaged throughout the sales process Crystal Cooper, VP of Government Solutions • Contract negotiation Jose Garcia, SVP of • Serving as the key point of contact during Implementation Government Solutions • Partnering with Global Account Executive and Global Account Manager • Being your executive advocate ©'References to Fisery throughout this response are deemed to refer to 10 Fisery Solutions,LLC or its affiliate that offers the stated product or service* City of Port Arthur First Data Merchant Processing f�serv. Customer Service and Help Desk representatives are available 24/7. Account managers and account executives are available 8 a.m. —6 p.m. ET. Issues are logged, managed and escalated using Customer Relationship Management (CRM) tracking solutions. The resource at each level is empowered to engage the resources necessary for a quick and permanent resolution. Issues are assigned priorities with those impacting operations receiving the highest priority. Corporate Office The Fisery corporate headquarters have been located at 255 Fisery Drive, Brookfield, WI since July 1992. We have several other offices, print facilities and data centers located across the continental United States. The public agencies will be served by sales personnel across every state. Our organization has shared and dedicated resources and the specific relationship team will be fully designed following contract award. Our Competition For decades, Fisery has developed solutions to keep our clients covered across the next generation of commerce technologies and ahead of their competition. We have invested in the technology, human capital and talent to maintain our innovation lead in the payments industry. We compete with merchant acquirers that include Worldpay, and Global Payments, in addition to financial institutions that provide acquiring and processing services to businesses on their own, such as Chase Paymentech Solutions, Elavon (a subsidiary of U.S. Bancorp), and Barclaycard. Additionally, payment networks such as Visa and Mastercard are increasingly offering products and services that compete with our suite of solutions. Competitors of our next- generation services include PayPal, Braintree (a subsidiary of PayPal), CyberSource (a subsidiary of Visa Inc.), Adyen, and Stripe, along with integrated point of sale providers such as Micros, Square, and others. The primary competitive factors impacting Fisery are brand, data security, breadth of features and functionality, ease of technological integration, strength of financial institution partnerships, price, and servicing capability. Other factors impacting Fisery include consolidation among large businesses and financial institutions, the pace of integrated point of sale solution development, and the creation of new payment methods and related technologies. How Fisery ranks among our competition: • #1 Merchant Acquirer • #3 U.S. Debit Network • #1 Issuer Processor • 6 million business locations • 1.1 million STAR location ©'References to Fisery throughout this response are deemed to refer to 11 Fisery Solutions,LLC or its affiliate that offers the stated product or service* City of Port Arthur First Data Merchant Processing 5 n ['serve • Thousands of financial institutions From the largest multinational retailers to the smallest operators —the depth and breadth of payments and business management services is beyond compare. From card and check acceptance solutions, to customer loyalty, mobile commerce, security, analytics, and more, we continue to innovate for our clients, enabling them to succeed and grow in a swiftly evolving competitive and technological landscape. In addition to offering the widest spectrum of products and solutions, we proudly differentiate ourselves on service, serving as a consultative, proactive business partner to our clients before, during and long after the sale. Perhaps our greatest differentiator of all is our staff of over 40,000 owner-associates worldwide, representing the industry's top talent and expertise, all singularly focused on our clients' successes. All partnerships are unique, but one thing is constant—the success of a partnership relies on meeting the needs of each individual partner. Fisery is the industry leader at enabling financial institutions to enhance their market position via a comprehensive and tailored merchant services partnership. Our mission is to help our clients grow through unique and compelling merchant services programs while providing transformative customer service. We believe that Fisery is uniquely positioned to serve and grow City of Port Arthur merchant programs into the future given the cultural alignment we have with financial institutions and the resources we have to help them be successful. Differentiators In July 2019, Fisery acquired First Data, a global leader in merchant acquiring, financial institution issuer services, and an instrumental partner in helping clients navigate the rapidly changing landscape of global commerce. Since our announcement in January to combine Fisery and First Data, there have been two other acquisitions among our competitors that have realigned the FinTech industry. These acquisitions have intensified competition, leaving some clients feeling apprehensive about the direction of the industry. However, by combining the very best of solutions from both heritage companies and continuing to place significant investment in market leading technology and unparalleled service quality, we intend to deliver a true FinTech landscape—delivering innovative, integrated technology, and payment solutions for the way people live and work. We truly are Partners in Possibility. Original Fisery strengths include: • Robust Debit Switch • Core Integration with DataSafe • ATM Managed Services ©*References to Fisery throughout this response are deemed to refer to 12 Fisery Solutions,LLC or its affiliate that offers the stated product or service* City of Port Arthur First Data Merchant Processing IISeri/ • Superior Risk Solutions • Award Winning Card Control App • Card Manufacturing • Relationship & Service model Original First Data strengths include: • "Always On" Credit Platform • Versatile and Scalable Rewards Platform • Strong Credit Analytics • Commercial Cards • Loans Processing • Merchant Acquiring • Robust Prepaid Solution In the New Fiserv, these blended capabilities generate: • Unmatched market connectivity • Faster and better innovation • Powerful access to data • Broadened solution set and robust platforms • Superior servicing model and operational excellence. As a result of the synergies and efficiencies we have created by combining Fisery and First Data, we can deliver even more in the months and years to come. Our approachto delivering more value to our issuers is to: • Accelerate client value through differentiated solution integration • Develop new capabilities based on market trends and client need • Transform digital experiences reflecting changing client need The following are key differentiators between Fisery and our competitors: • Global Experience and Reach — Fiserv's payment technology solutions have the depth and breadth to support your global operations. As a global industry leader, Fisery supports clients in 100 countries. Plus, with Fisery operations in 27 countries and a global team of 40,000 owner-associates, we can bring our innovative payment solutions to support your operations and customers around the world. • System Capacity and Stability—We maintain one of the best system availability rates in the industry. Our multiple-site design delivers fully redundant and fail-safe capabilities, so there is no single point of failure. Systems capacity is provisioned so that any single ©*References to Fisery throughout this response are deemed to refer to 13 Fisery Solutions,LLC or its affiliate that offers the stated product or service' City of Port Arthur First Data Merchant Processing risen/ data center can experience a complete site outage, and the remaining site has more than adequate capacity to accommodate traffic during the busiest hour of the year. • Innovation and Investment— Fisery continues to focus on our clients' needs by investing in technology development. Additionally, we continue to acquire cutting edge companies that enable us to far outpace the rest of the industry while pioneering new ways for our brands to connect with their customers. • Business Support— Fiserv's marketing and ongoing business support includes: quarterly business reviews with KPI benchmarking, annual Consumer Insight study, fraud white papers, legislative updates, Fiserv's Connected Magazine, Gift Solutions blog, annual Leadership Conference, and access to our Joint Security Operations Center (JSOC) and Learning and Innovation Center. The following are advantages of our solution: • Unparalleled Security— Fiserv's Cyber Fraud and Security teams proactively monitor fraud across all of our payment products and clients, thereby preventing data breaches, protecting customer information and mitigating fraud. In addition, our proprietary message specification and account numbering scheme are inherently resistant to attack. • Reporting — Fiserv's unique Business Intelligence solution provides power and flexibility for custom and ad hoc report generation. • Professional Services -We support advanced implementation projects needing API and/or ERP integration with professional services provided by our U.S. based corporate resources. Our subject matter experts have years of Financial Services and payment solutions experience, complementing capabilities of our wide depth and breathe of products. We have specific knowledge in the public sector and will discuss specific requirements with the public agencies and offer best practices and deep experience for success towards an integrated, streamlined, automated and efficient operational solution. Customer Service The relationship with our clients is the most important aspect of our business. We take the necessary steps to ensure our Client Services teams are well staffed, fully trained and readily available for customer assistance. Our Client Services Operations (CSO) are performed in- house, and our team members are payment experts focused on the client experience, aiming for first call resolution and quick and accurate responses to inquiries. The CSO Support Team has additional resources available to assist with the various needs of client's business units/departments. Some of the areas that provide resources, as needed, are product development, front-end authorization network, telecommunications, network planning/engineering, activations and conversions, settlement, Interchange, compliance and ©*References to Fisery throughout this response are deemed to refer to 14 Fisery Solutions,LLC or its affiliate that offers the stated product or service* City of Port Arthur First Data Merchant Processing Men/. retrievals/chargebacks. In addition, we have multilingual capability in our centers — English/Spanish in the United States and English/French in Canada. The CSO Support Team's responsibilities and availability are described below. • Help Desk—Our Customer Service Help Desk is your first line of contact for your customer locations. We provide toll-free numbers, which allows us to accurately and efficiently route calls through an automatic call distributor(ACD) to Customer Service and Help Desk representatives trained to professionally answer questions pertaining to your specific industry or account. Our Client Services and Terminal Help Desk are staffed 24/7 with knowledgeable and experienced personnel. We strive for first call resolution on every call. In the event an issue is not resolved on the first merchant contact, most research and resolution is completed within 72 hours, and the highest priority issues impacting operations are assigned resources first. Our team is focused on the customer experience by measuring your customer's voice through first call resolution and other continuously monitored and analyzed performance measures. • Technical Help Desk—Our Technical Help Desk is truly interactive, operating 24/7. Representatives have online, real-time access to the transaction database as transactions are processed. In addition, they have access to merchant and terminal profiles that contain the information necessary to provide technical assistance. We can also be the first/front line contact point for many point-of-sale (POS) partners. If the problem is determined to be external to us, our representatives route the caller to the next level or outside contact. • Call Centers—We support primary call centers in Omaha, Nebraska; Hagerstown, Maryland; Marietta, Georgia; and Coral Springs, Florida. All of our call centers operate on a 24/7 basis. Our professionals are always available should client's staff need assistance. We have approximately 5,000 customer service representatives across our call centers. Green Initiatives Although Fisery does not have a formal environmental/sustainable policy, the majority of Fisery operations have minimal impact on the environment. Fisery is naturally a clean and non- polluting business. We endeavor to operate in an environmentally responsible manner. This commitment includes business practices aimed at conserving, recycling and reusing resources where practical and product offerings that represent ecologically sound alternatives — including digital banking and payments, digital document delivery and storage, etc. — that enable clients and consumers to accomplish tasks with lower resource impact than traditional methods. Fisery also encourages associates to participate in environmental preservation, recovery and conservation efforts that reflect their personal appetites for engagement. We believe that our strategy and business model, products and services, business practices, and corporate giving activities have a significant positive environmental impact. ©*References to Fisery throughout this response are deemed to refer to 15 Fisery Solutions.LLC or its affiliate that offers the stated product or service* City of Port Arthur First Data Merchant Processing risen/. While there may be variations in specific practices and areas of focus across the enterprise, some of our exemplary efforts include: • Fisery moved six Atlanta-area operations to a single campus in Alpharetta, Georgia. We elected to refurbish an existing building, upgrading its systems to include an intelligent energy management system, energy-efficient lighting, furnishings from recycled materials and an array of solar panels that supplement the building's energy supply. • With being "green" on top of mind, Fisery recently combined several Dallas-area offices that now include the use of chairs that are 99 percent recyclable, LED energy-efficient lighting, HVAC equipment controlled by energy management system, installing recycling bins in all break rooms, and more. • We recycle most office paper and printer supplies. • Internally, Fisery has built an online collateral ordering site for events and tradeshows that deliver Fisery collateral as PDFs to avoid waste and unnecessary shipping. • Our national master agreement for building maintenance requires the use of eco-friendly cleaners and cleaning techniques. • Fisery partners with e-Cycle, a cell phone recycling company, to implement a company- wide policy to recycle all company-owned mobile devices and accessories. • Fisery was a founding member of PayltGreen, a group committed to educating consumers and businesses about the positive environmental impact of choosing electronic payments, bills and statements over paper. Vendor Certifications As a leader in the financial services sector, we are an active member of several well-known industry organizations, responsible for the founding of key advocacy groups that foster open standards. Our company is certified in payment industry standards. Across the company, representatives including our executives participate on advisory councils for Mastercard, Visa, Discover and STAR Network. We are a founding member of Debit Network Alliance, Merchant Advisory Group, Secure Remote Payment Council and in 2018 we joined to form Secure Payment Partnership. We are also: • An American Bankers Association Member • PCI Certified • Registered with the FFIEC • ISO Approved Since Fisery products and services are vital to the business of our clients, Fisery strives to deliver and maintain quality, security, and professionalism at all levels of the company. ©"References to Fisery throughout this response are deemed to refer to 16 Fisery Solutions,LLC or its affiliate that offers the stated product or service' City of Port Arthur First Data Merchant Processing 5 fiseru . Throughout the company, critical processes are documented and adhered to. Where the business model has warranted it, Fisery business lines have relevant industry certifications including PCI, SSAE 18 SOC 1 Type II or SOC 2 Type II, HIPAA/HITRUST and so on. In addition, Fisery is fortunate to have a large number of skilled software developers, engineers, information security specialists, client services professionals, and project managers, including many Six Sigma practitioners. Products and Services We bring a deep understanding of the business of government and have products and/or services to address the terms under this agreement. Our team will work with each participating agency to identify their needs and provide the best solutions and added-value services to empower their payment environments. Whether consulting on transformative health and human services projects, providing independent verification and validation services to DMVs or integrated eligibility, our consultants and development staff are constantly improving how governments operate. From the smallest municipality to individual states to the federal government, our teams develop and implement the strategies that continually improve how revenue is collected and how programs are delivered. Acquiring Private Label Cards r� Data and Analytics . ,40 Gift Solutions _, ° Billing and Payment Solutions 1l1 Open Loop and Closed Loop Prepaid © Security and Fraud Loyalty Marketing Programs fiserv. Eo Credit and Debit Solutions J Universal Commerce �R Single Source SolutionE-Commerce for Government �` Payroll Distribution On s Maximum PCI E Scope Reduction Cash Management PP((�gg�� Solutions and Smart Safes "'� Semi-Integrated,Stand-Alone sl and Mobile Solutions Clover POS g Is- -' l� Check/ACH Solutions Walk-In Bill Pay Self Check-Out Kiosks Figure 1. Fisery Government Solution Overview While we have a diverse set of solutions as well as hundreds of third-party solutions certified to our platform for your payment processing needs, we begin each unique relationship with a core set of services common to most participating agencies. These core services include: ©`References to Fisery throughout this response are deemed to refer to 17 Fisery Solutions,LLC or its affiliate that offers the stated product or service* City of Port Arthur First Data Merchant Processing fiserv. • Acquiring • Data and Analytics • Billing and Payment Solutions • Security and Fraud • eCommerce • PCI Scope Reduction • Check/ACH Solutions • Clover POS Full-Service Credit Card Processing Services Fisery will work with you to optimize your payment environment. We continue to be a leader in payments processing, leading the industry in core card processing, debit for eCommerce, ACH processing. currency solutions, and so much more. We authorize and settle transactions for Visa, Mastercard, American Express. Discover. Diners Club. JCB. all EBT networks, all debit networks and the majority of third-party fuel cards. We also support Apple Pay, Google Pay. Samsung Pay. Amazon Pay. PayPal. PayPal Credit and TeleCheck O. In addition, we have proprietary gateways and have hundreds of certified third-party gateways that integrate with our payment platforms through simple and modern APIs. It is our continued desire to offer clients the latest payment options available to accommodate how consumers want to pay for goods and services today and to help your citizens. UNIQUE GOVERNMENT PAYMENT OPTIONS 1. Government Interchange Programs for Credit Cards Fisery participates in the Visa Government and Education Payment Program. Through this program, we will register qualifying agencies through City of Port Arthur merchants to ultimately be allowed to assess variable service fees and rate programs in the card-present and card-not-present environments resulting in significant savings on card processing to our agencies. 2. ACH and eCheck Processing With more than 50 years' experience in the check industry, 50 percent of the top 20 retailers in the country use our TeleCheck® services —accounting for 60 percent of the U.S. check acceptance market. We process an average of 1.5 million daily transactions, which equates to 500+ million transactions annually through over 370,000 active subscribing locations. With our robust TeleCheck solutions, we can reduce your cost and risk associated with check- and ACH-based payments. TeleCheck services allow you to accept ACH payments with less risk and a higher level of protection against fraudulent and returned checks. TeleCheck uses leading risk assessment ©"References to Fisery throughout this response are deemed to refer to 18 Fisery Solutions. LLC or its affiliate that offers the stated product or service* City of Port Arthur First Data Merchant Processing fiseru. Our consumer-drive insights tool provides analysis of macro trends across the country, region, and key industries. For individual clients, our tools help clients understand their consumer spend behavior, perform marketing/ad attribution, and build custom ad audiences. Table 2 provides additional information on the features and tools available with this portal. Table 2. Business Track SM Portal Fisery provides key information to all of your clients on all of their payment streams, including credit, debit,prepaid/gift card and check, in a single, consolidated web tool. Key Features Self Service and Online Links to Popular Applications Support • Card Processing • Account Maintenance— • ClientLine®online Summary—displays update statement Reporting—view seven-day processing delivery method, address payment processing summaries and contact information information with access to • Statements— • User Preferences— over 150 scheduled provides link to ability to change reports monthly statements password, request • Dispute Manager for all credit and debit additional applications Service—receive, view card activity and update the user and respond to • Disputes—view profile chargeback and retrieval summary information • Contacts—convenient disputes online on open disputes with reference of bank • Alerts—notifications by a hotlink to the online contact information email or text for events tool • Resources—convenient related to Reconciliation links to training and Dispute activities demonstrations, industry • Data File Manager news and business Solution—create, test, glossaries manage and generate raw • What's New—latest data files daily or on announcements and demand time-sensitive information Systemic Reports Hierarchy Reports To help you report at different hierarchies, ClientLine can provide reporting at a location, merchant identification (MID) prefix, chain and master chain level. The group builder module within ClientLine allows user-defined group reporting; the user picks from the location he/she owns to create custom groups that may be permanent or temporary. Access is granted at any of the mentioned levels to allow users to view only their locations, or particular departments within a corporate office to view only certain regions. This hierarchy is defined up front, so the appropriate chaining convention can be used. ©*References to Fisery throughout this response are deemed to refer to 21 Fisery Solutions,LLC or its affiliate that offers the stated product or service* City of Port Arthur First Data Merchant Processing risen/. ClientLine Systematic Reports ClientLine offers the ability to schedule customized reports in a variety of common formats that can be downloaded from the dashboard and/or emailed to a list of users and aliases defined. Data File Manager Many large merchants use raw data files to download merchant processing data into their internal and/or proprietary reconciliation tools. Our Data File Manager application, pricing will be provided upon request, brings a best practice approach to this often time-consuming process with a focus on flexible, self-service capabilities so that you get the data you need, right when they need it. The following are key Data File Manager features: • Conveniently access the raw data files necessary for reconciliation and reporting • Build your own files by choosing the specific records and fields to be included • Receive summary, detail, dispute, Interchange and funding records in one file • Generate files at any hierarchy level, from bank marker to location • Access a long retention period for historical data (13 months of transaction detail data and 25 months of summary data) • Access Data File Manager through the Business Track portal with secure and easy single sign-on Ad-hoc reporting We can provide ad hoc reporting via ClientLine, allowing you to report on virtually any data point or element captured in our database. Many of our large merchants use raw data files to download merchant processing data into their internal and/or proprietary reconciliation tools. The combination of reports and action queries within ClientLine online reporting allows for a robust reporting package merging the need for standardized reporting with ad hoc request capabilities. In addition, our Data File Manager application brings a best practice approach to this often time-consuming process, with a focus on flexible, self-service capabilities so you get just the data you need, right when you need it. Funding Time Frames Same day and 24 hours/next day funding is available to merchants, depending on products, services or products selected by the participating agency. We will work with you to provide the most optimal funding for your particular solution need. No integration is required by the City of Port Arthur for this functionality. ©'References to Fisery throughout this response are deemed to refer to 22 Fisery Solutions,LLC or its affiliate that offers the stated product or service* City of Port Arthur First Data Merchant Processing fiserv. As an example, the daily settlement window could bel 1:30 p.m. ET. The payment schedule for Visa®and Mastercard®transactions is reflected in Table 3, Funds Availability Schedule. We deduct fees on a daily basis, and our clients can dispute charges if necessary. A more favorable schedule can be provided based on City of Port Arthur's sponsor bank. Table 3.Sample Funds Availability Schedule. The following table outlines when City of Port Arthur receives funds following transaction settlement. Transaction Settlement File sent Interchange Fisery Initiates ACH Delivered to Day to Fisery(Cut-off Processing ACH Bank time before 11:30 p.m. ET) Monday Tuesday a.m. Tuesday Tuesday Wednesday Tuesday Wednesday a.m. Wednesday Wednesday Thursday Wednesday Thursday a.m. Thursday Thursday Friday Thursday Friday a.m. Friday Friday Monday Friday Saturday a.m. Saturday Monday Tuesday Saturday Sunday a.m. Sunday Monday Tuesday Sunday Monday a.m. Monday Monday Tuesday Equipment and Gateways Options Fisery has multiple hardware solutions as well as certifications to hundreds of third party hardware solutions. Our flagship Clover suite of hardware solutions offer simple POS solutions with the options to advance into customized hardware APPS and APIs. Innovative Point-of-Sale (POS) Systems As one of the largest providers of POS equipment, Fisery Hardware Services provides the latest POS devices to assist your pursuit of PCI compliance while offering your customers the most complete and secure payment options available today. With a full complement of PCI-certified and EMV-enabled devices, Fisery enables City of Port Arthur clients to accept payments securely, reliably and effectively without the hassles and costs of PCI non-compliance. Our high-quality POS solutions and progressive end-to-end service offerings set us apart from the competition, enabling us to provide our clients with all the equipment, support and service necessary to be successful. We offer a broad portfolio of best-in-class solutions from top-name manufacturers and end-to-end service offerings that span many technologies, including countertop terminals, peripherals, multilane, mobile, wireless, remote deposit capture (RDC), multilane and printers. Regardless of the size or scope of service that you need, we have the scale and capacity to seamlessly handle your fulfillment requirements. ©'References to Fisery throughout this response are deemed to refer to 23 Fisery Solutions,LLC or its affiliate that offers the stated product or service' City of Port Arthur First Data Merchant Processing TISON. Clover Suite of Products Clover is the business management system that makes every aspect of merchants' businesses easier. Small business owners are empowered with the latest technologies, prepared for the future and ready to harness the power of data in one small package. Clover can still accept payments and conduct transactions if an Internet connection goes down. All Clover systems come stocked with powerful applications to create menus, update inventory and manage staff. Business owners also get the power of Clover Security to protect merchants and their customers. Clover grants instant access to a growing app marketplace filled with dozens of powerful tools to empower businesses. Below are additional features of our Clover line of products: Clover Station Features • Large and brilliant 11.6"touchscreen • High-speed printer and cash drawer included • Multiple payment methods— magnetic stripe, debit, EMV, Apple Pay, and more • Simple setup, ready in minutes • Sleek and attractive style • Embedded camera to scan barcodes and QR codes • Proprietary pivot arm swivels smoothly between merchant and customer • Ethernet, wireless and Bluetooth options for optimal connectivity • Four USB ports to connect peripherals • Additional accessories available to customize your Clover experience Clover Flex Features • Portable POS and payment capability in a compact, all-in-one package • Ready to integrate or act alone— SDK to wirelessly extend the POS or take on the road in full independence • Multiple payment methods— EMV, NFC, magnetic stripe, QR code, mobile wallet, PIN, signature. • Integrated printer, 2D barcode, camera, Wi-Fi, Bluetooth, 3G (standard), hard key screen overlay for ADA compliance • Secure Android based "App" architecture for easy addition of Ar new features, or support of different use cases throughout the enterprise ©"References to Fisery throughout this response are deemed to refer to 24 Fisery Solutions.LLC or its affiliate that offers the stated product or service' City of Port Arthur First Data Merchant Processing risen/. Clover Mini Features • Smaller footprint to save counter space • Easy-to-read 7" touchscreen • Built-in, high-speed printer • Wireless connection through Wi-Fi or 3G or with a standard Ethernet cable • Multiple payment methods— magnetic stripe, debit, EMV, Apple Pay, and more • Four USB ports to connect peripherals • Integrated camera to scan barcodes and QR codes Fisery Line of Terminals • FD150 Terminal —Combines performance, reliability and ease of use in ' ' a compact, feature-rich device that enables you to accept transactions when a customer presents you with an EMV card. o®® ®mm FD35 PIN Pad —Citizens can insert their chip cards into the EMV chip ®® o • card reader, tap their contactless cards, or swipe traditional cards P110 through the magnetic card reader—all without relinquishing control of their cards. This comprehensive device accepts PIN and °'i signature debit cards, all major credit cards, gift and EBT cards and STAR® network transactions. In addition, the FD35 enables mobile phone payments that help merchants drive loyalty and ®mo repeat business by generating and redeeming special offers. CD Gateways Fisery owns and maintains multiple gateways and there are hundreds of third-party gateways that are certified to our processing platforms. We offer agencies basic and advanced gateway solutions that support many common features and functionality critical to their success. ©*References to Fisery throughout this response are deemed to refer to 25 Fisery Solutions,LLC or its affiliate that offers the stated product or service* City of Port Arthur First Data Merchant Processing Pricing Volume-Based Fees 4e of Dollar Per Description Transaction \-ofame Fee Fee Discount rate Authorization Fee 113 r 0.01 Transaction Fee 111 NA Non-bankcard Authorization feer1.: <_ 0.01 Transaction-Based Fees Description Per Transaction Fee Batch Authorization $ C 2 1 CV Gateway Token irr uded in gateway fee Debit Base S C.0 1 Dial Communication $ C C 1 ECS Authorization Declined no charge for the intial t��o Electronic WATS Dialing C.0 1 IP Communication C.0 1 Unknown Authonzation C.0 1 VisaNet Electronic Local/SL VisaNet Electronic WATS Vital Electronic Commerce/IP Voice Authorization Operator Assisted .r C.75 Voice Authorization Referral C.75 Voice Authorization $ C 25 Other Processing Fees Description and fee structure ? of Dollar Pe; Volume Fee Transaction Fee CHARGEBACK FEE 5 - _ 550 GATEWAY FEES 2 - - 3.34 INTERCHANGE FEES passthrough passt.hsough ASSESSMENT FEES passthrough passthrough EIAVON FEES ACH Reject Fees 3 - S Address Verification S - S - eCheck Transaction fee - 0.15 Wireless terminal fee - 11.0= Adjustment Authorization Fees Adjustment Discount Fees passthrough Ad,ustment Equipment Fees Ad:ustment Equipment Lease Ad ustment Equipment Swap Fees Ad ustment Funding Adjustment IBSI - - - Adjustment Merchant Supplies Adjustment Other Fees Adjustment PC'Fees S 45.00 Adjustment Shippin_ passthrough Ad;ustments passthrough monthly gateway and reporting fee[per month) - up to two days of service per dept installed Beyond this(per hour; - 250.00 Project Management/Deploy Management(per hour) S 150.00 ©*References to Fisery throughout this response are deemed to refer to 26 Fisery Solutions,LLC or its affiliate that offers the stated product or service* City of Port Arthur First ata Merchant Processing men/. Statement of Proposal This proposal is meant solely to provide information about the products and services described herein and your company's use thereof. This proposal does not constitute an offer to contract, and neither Fisery nor your company shall be obligated to provide or purchase the products or services described in this proposal until a definitive agreement is executed by Fisery and your company. All proposed terms and information herein assume the use of Fiserv's standard contract terms and conditions, which Fisery shall provide to you. Fisery welcomes the opportunity to respond to this Request for Proposal. The responses of Fiserv, including the pricing set forth herein, are non-binding, and are being provided for informational purposes only and do not constitute or give rise to a contractual commitment on behalf of Fiserv. While Fisery has endeavored to provide thorough and helpful responses herein, the contractual terms and conditions, and the associated pricing for the solutions described herein are subject to Fiserv's standard agreements, which will be supplemented and refined based on the specific array of solutions and services to be provided after selection. ©2021 Fiserv, Inc. or its affiliates. Fisery is a registered trademark of Fiserv, Inc. Other products referenced in this material may be trademarks or registered trademarks of their respective companies. ©'References to Fisery throughout this response are deemed to refer to 27 Fisery Solutions,LLC or its affiliate that offers the stated product or service-