LMCPAYS-GEh1 of ih e DESERT -
REQUEST FOR PROPOSAL
MERCHANT SERVICES
CITY OF LA QUINTA
RESPECTFULLY SUBMITTED BY
A CHOSEN PAYMENTS COMPANY
2
COVER LETTER
Kristen C arroll , Founder and CEO
LM C Pa ys
5401 Tech Circle , 2nd Floor
Moorpark, CA 9302 1
857-540 -161 O (t) I kristen@chosenpayments.com
September 28, 2018
Karla Campos
Finance Director/Treasurer
City of La Quinta
78495 Ca ll e Tampico
La Quinta , CA 92253
Dear Ms . Campos :
Here is our name and principle business location:
LMCPays, a Chosen Payments Company
540 1 Tech Circle , 2nd Floor
Moorpark, CA 93021
Our headquarters is located in California, so we are close in proximity to the City of La
Quinta . Since we are submitting a proposa l for the merchant services portion of the RFP
ra t her than t he banking portion, we w ill be able to fulfill our part of the co n tract remotely
after the in itia l setup.
Sincerely,
Kr isten Carroll
3
TAB A -TRANSMITTAL LETTER
Krist en Carro ll , Fo under and C EO
LM CPays
5401 Tech Circle , 2nd Floor
Moorpark, CA 93021
857-540-161 O (t) I kristen@chosenpayments.com
September 28, 2018
Karla Campos
Finance Director/Treasurer
City of La Quinta
78495 Calle Tampico
La Quinta , CA 92253
Dear Ms. Campos :
Thank you for the opportunity to submit this proposal for the City of La Quinta's Merchant
Serv ices contract. I look forward to showing your team how LMCPays/Chosen Payments
can offer you a top-notch credit card processing solution .
Our proposal is for the merchant services aspect of the RFP, not the banking services. Our
firm has extensive experience in credit card processing , with a proven track record of
success. We are confident we can support your efforts by taking on the important work
of processing credit card transactions for you . We are delighted to have the opportunity
to support a local Cal ifornia municipality.
We have carefully read the entire RFP and will comply with all the terms and conditions.
We have received the addenda from October 4, October 8, and October 9.
Thank you again for your consideration . Please contact me with any questions.
Sincerely ,
Kristen Carroll
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TAB B -BANK AND PERSONNE L FILE
Bo nk Overview
Chosen Payments : Who We Are
• Nationally recognized processor with 25 ,000 clients processing over $5 Billion
• Leadership team with a combined 60+ years of industry experience
• One of 15 members in the world of the First Data ISO Advisory Board
• Presidents Club winner for the past 8 years in a row
• $130MM company and capital partners with Goldman Sachs and Prudential
Capital
• World -class bank sponsorships with Wells Fargo and BBV A Compass, enabling
efficient boarding, white-glove seNice, cutting-edge tec h nology, and the highest
client retention rates in our class
• Offices in California , Utah, New Hampshire, Georgia, Arizona , and Michigan -150
employees
• Member of BBB and in good standing w ith an A+ rating
• Named to INC5000 list of fastest-growing companies in 2017 and 2018
• Less t han 23 attriti on rate-lowest in the industry
Chosen Payments is a payments industry leader located in Moorpark, CA, leveraging our
reputation, values, and passion into creating a company that stands by what we say. We
have offices in various states nationwide and are fluent in 7 d ifferent languages.
Throughout our history, we have achieved significant growth, year over year, every year.
We are an FSP , which means we have our own bank sponsor re lationships and processor
relationships in which we contro l the underwriting, risk, approval, and ongoing support .
Most processing companies are Independent Sales Organizations that are a level
removed from the processor and ban k and simply seNe as reseller and servicing arms .
With our strong array of sponsor bank options and access to capital though our partners,
we have the competitive advantage t o select what scenario is best for the client and
th en implement. This in sures a technology-driven solution , low pricing , and smooth
t ransition.
Experien ce
We seNe sma ll, mids ize, and large businesses, as well as nonprofits and government
entities . We have current merchant seNices contracts with public sector cl ients . Since we
are located in California , we are well versed in its laws and regulations .
Relationship Management
We are responding to this question in terms of our merchant seNices personnel.
Je ff 6rod sly
C hosen Payments Presiden t and CEO
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Jeff h as vast e xperience in the merchant service industry , starting from the g round up as
a merchant-l evel salesperson and evolving to found Chosen Payments, one of the
natio n 's mos t prestigious processing companies. Prior to founding Chosen Pay m ents in
2008 , Jeff spearheaded the growth and sale of two other merchant service companies.
Since t hen, Chosen Payments has been co nstantly recognized as a leader in al l niche
markets they serve ; the company earned the First Data President's Club Award in 2012
and 2013 . Th rough his innate abi lity to develop long term and trusting partnerships , Jeff
invests most of his time overseeing the company while maintaini ng a hands-on approach
w ith the Chosen sta f f, clients and partners. In 2013 , Jeff received En t repreneur of the Year
in Moorpark, Cal if ., home of Chosen Payments corporate headquarters.
Jeff has been providing these kinds of services for ten years as the President and CEO of
Chosen Payments, as well as years of experience before founding Chosen. Jeff is
personally availab le to his clients .
Derek Maxwell
Chief Technolog y Officer
Derek brings nearly a decade of e x perience in the transporta ti on industry, hav ing
e xte nsive experience in both technology and operations roles in emergency medical,
paratransit, and chauffeured serv ices providers. Prior to joining Chosen Payments, Derek
founded a cloud services provider in 2012 , which specialized in business continuit y,
d isaster recovery, hosted services , and Voice over IP so lutions for t he country's leading
tra n sportation providers . Maxwell specialized in system engineering, carrier grade
networking, enterprise computing, and Voice over IP . He built a reputation on providing
solutions where other providers give up, building non-traditional systems and
architectu res that meet a cus t omer's unique requirements.
Chosen 's in-house technology department is ably led by Derek Maxwell. He has more
than three years of experience delivering the serv ices the City of La Quinta requires and
has dedicated the time to do so .
Kriste n C a rroll
Chosen Payments Partner, LMCPays C EO
Kristen brings ove r 20 years o f execu t ive leadership experience t o the Chosen Payments
Team. Working wi t h organiza ti ons of all sizes and in a ll sectors , Kristen's knowledge of the
inner workings of diverse organizations has proven to be an invaluable resource to our
organization , and more importantly, our clients .
Kristen is a business management expert who routinely speaks at events and conferences
both nationally and internationall y . She is an award-winn ing business strategist and was
a 40 under Forty recipient for the State of New Hampshire . Her work is routinely featured
in magazines , newspapers and trade publications, and she is a business writer for the
Huffington Post .
Kristen rounds out our e xecutive team experience with a solid understanding of
operations, ta lent management, e xecutive coaching, culture, and strategic planning.
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She has more than 15 years of experience providing training solutions of the type required
by this contract.
Sarah McKee
VP of Client Services/Relationship Manager
Sarah brings years of industry experience to Chosen Payments. Starting off as a lower
level sales agent, transforming into a sales manager and eventually participating in the
operations side of things , Sarah has the ability to wear almost any hat in the merchant
services industry. Sarah continues to wear many hats at Chosen Payments and plays a
large role in our partnership management, traveling the country on behalf of the
company. With over a decade of sales and management experience, Sarah will
continue to be a leader at Chosen Payments for many years to come.
Sarah has more than thirteen years of experience providing similar services.
Customer Service
One of the maj or factors that differentiates LMCPays/Chosen Payments from other
processors is our commitment to white glove service and superior quality. We monitor
and measure our performance in our internal monthly reporting , and we are able to
make changes should they be necessary. Any issues can be escalated to the president
of ou r company if they are not able to be reso lved with your relationship manager. You
can reach Kristen Carroll at 857-540-1610. This is one of the major benefits we offer as a
sma ll business rather than a large bank: we are in your corner.
The proof of our industry-best service is on our attrition rate, which is an unheard-of <23.
We are committed to a partnering and consultative approach with our clients .
Your customers will have access to our in-house customer service professionals during
bus iness hours .
Compliance and Exceptions
LMCPays is fully compliant with all local, state, and federal laws and regulations. LMCPays
will comply with all the requirements in this RFP. We have no exceptions to the merchant
serv ices requirements of this RFP.
Responsible Banking Description
N/A
7
TAB C -REFERENCES
Cobb County, GA -2017 to present
Jan Becker, Sr . Tax Manager, 770-528-8610, 1un,r l (_~re. cor bco,_w·y.orc1
For the Cobb County Department of Mot or Veh icles , we b uil t a c u stom solutio n for in
person payments at each office and integ ra t ed this c ust o m solu tio n t o the C loud Online
securing all card data and allowing EMV acceptance. We a lso c re ate d custo m reports
to reconcile against in ternal cas h iering system. For C o bb Coun t y Property Tax , we
created a custom sol u t ion to allow in person acceptance of pro p ert y tax payments. We
a lso comp leted a c u st om integration into t he RECO Sys t em for an all-inclusive product
set. We util ized a co nvenience fee model so the government agency would not absorb
any associated fees.
City of Agoura Hills -2013 to present
Christy Pin u elas, Finance Directo r, 818-517-7319, cpin u e las@ci .ag o ura-hills .ca.us
Set up payments for parks and recreation d ivision, utilities and p a rking. Implemented in
person and phone pay ments, as well as reporting.
Greater California Limousine Association -2016 to present
Tom Garrett , Executive Director, 2 13-440-463 4, tom@gcla.or
Provide ful l credit card processing for the association and its members.
Chosen Payments has credit card processing partnerships with dozens of associations
and entities :
• American Booksellers Association
• Arizona Limousine Association
• Au t oSoft NET
• California Moving and Storage Association
• California Retail System
• Cen tral Flor id a Li very Assoc iation
• CerTek Software Designs
• Ch iroSushi
• Colorado Lim ousine Association
• Co ntinental Buying Group
• DBX
• Diamond Council of America
• DriveProfit
• EyesOn Digital
• FASTTRAK
• Florida Limousine Association
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• Gift & Housewares Marketing
• Greater Atlanta Limousine Association
• Ground Widgets
• International Housewares Association
• Jimmy DeGroot -Jewelry Marketing Guy
• Kennel Connection
• Limo All iance
• Limo Live
• Limousine Associations of New Jersey
• Livery Coach
• MicroBiz
• Minority Limousine Operators of America (MLOA)
• National Association of Motorcoach Operators
• National Hot Rod Association (NHRA)
• New England Livery Association
• North Carolina Limousine Association
• Optiboard
• Oregon Auto Dealers Association
• Rental Limo
• South Metro Federa l Credit Union
• Sumac
• Taxicab, Limousine & Paratransit Association
• The Bridal Association of America
• The Edge Jewelry Store Sof tware
• The Greater California Livery Association
• The Hudson Group
• The National Limousine Association
• The Uniform Retailers Association
• UNA Purchasing Solutions
• United Motorcoach Association
• Virginia Optometric Association
• ePay
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TABS 0-0 -NO PROPOSAL
D: Demand Deposit Accounts-No Proposal
E: Collateralization of Deposits-No Proposal
F: Bank Compensatio n-No Proposal
G: Deposit Activity-No Proposal
H: Bill Concentration Service-No Proposal
I: Wire Transfers-No Proposal
J: ACH Service Requirements-No Proposal
K: Payroll Tax Processing-No Proposal
L: State Activity/LAIF Transfers-No Proposal
M: On-line Bank Processes and Information Reporting-No Proposal
N: Accou n t Reconcilement-No Proposal
0: Daylight Overdraft Protection-No Proposal
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TAB P -MERCHANT BANKCARD
1. C apa bilitie s
We are fully able to meet the requirements of this contract. We are unique in that
we have our own in-house technology department, training department, and
customer service department. We have the tec h nical expertise to integrate with
t h e City of La Quin t a's current sys t em .
Specifically, we are able to process al l major merchant bankcards . We offer many
options, from online gat eways to poin t-of-sale set ups.
2. Reporting methodology
We offer comp letely customizable on line reporting opti o ns so our clien ts can run
any reports they might need, in real time at any time of the day or night. Debit
adju stments are debited fr om separa t ely. We w ill p a rtner w ith you to rebut any
chargeback. In fact, 903 of chargebacks are resolved in our clients' favor, thanks
to our ass istance.
3. Settlement
We w il l deposit funds for each day 's transactions in 24 hours . The settlement is by
ACH. Settlement amou nts are listed in one lump sum, but clients can eas ily run
reports to see separate settlement amounts . We can break out settlements by
merchant location.
4 . Cutoff time
We can offer any cutoff t ime desired by the City of La Quinta based on your
business requirements .
5 . Term inals
We can supply the City wi t h additio nal lngenico terminals if needed. Part of o ur
program is free terminal placement. We do not have a preferred credit card third -
part y vend o r for daily settlements; we process them ourselves .
6. Bank structure
N/A
7. Discounts
We provide ext remely compe ti tive ra t es for al l o f the City's transactions which are
not tiered .
8 . Reporting
Our processor reporting tools w ill offer online access to daily batc h activity, daily
deposits, statements, chargebacks , and retrieva ls . There is no additional fee for
this service . We have vari o us flavors of modu les /portals all b ased on the solut io n,
11
and we can provide the "corporate level" view of all merchant accounts. The
competitive edge is we own the data unlike most; therefore, we have the ability
to provide it to you in mos t any format needed and will customize integration into
our merchant's accounting or ERP system. We offer CSV and XLS formats, as well
as an API data feed.
Our gateway reporting tools allow full batch drill down to the transaction level as
well as transaction level· search . See sample transaction search below:
Find PonmMl l nf11rnwdon
lr ............ "'41.flt.. P..IOI"
lf1 .. ,..."' .
.... 1 .....
-
Our processor level reporting tools include information on interchange qualification and
downgrade reasons for full pricing transparency. Unlike many processors , LMCPays works
proactively with its merchants t o achieve the best interchange rate qualificatio n
available , including B2B and B2C purchas ing card rates when eligib le.
" ~;! ' ~ .-:"'. ~ -"! " s::
.. : ·' ~·::£-,c ., ., I':: .,
··~-c.c•.
... r. .. "r1·
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... ·~::. .. ,. 1;1··~r -· ~·"l>.!<:'. l .....:--. 1' !; -.r ,: .. ·" .. ·' ·-.. ' I ••... ., e-~-p~=-' ,, -~ '; ·-
'~ ' .a-•.•• 4•4..., .. "' ' -=.t>~ft C>.::4~ '· " ' l
: .. "' ... l.~ -l! .. "'.!''.t l :• ' ,. <.1'll 1:~ l
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12
9. Network
Fortunate ly , as an FSP we have the flexibility to use all major front and back end
networks including, but not limited to: First Data, TSYS , Elavon, Vantiv, Chase, Evo,
and more. With government and municipalities, we have special integrations and
reportin g on the TSYS platform . Based on your business needs we would most likely
suggest TSYS; however, we are not limited to TSYS.
10. Rate increase policies
We w ill not raise our rates throughout the course of this contract. They will be fi xed
throughout.
11. Payment gateway platforms
We can integrate with a wide range of payment gateway platforms, and our in -
house technology department will make this process seamless .
12. Fees
a. Vis a authorization fee : $.05 + 1 Obp
b. MasterCard authorization fee: $.05 + 1 Obp
c. Month ly service fee: $0
d . Monthly statement fee: 5 per MID
e . O t her fees
i. Chargebacks : $20
f . Discover authorization fee: $.05 + l Obp
g . AMEX authorization fee : $.05 + 1 Obp
h . Diners Club authorization fee : $.05 + l Obp
i. Discount rate for all cards: INT+ .0004
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TAB Q -PURCHASING CARD -NO PROPOSAL
14
TAB R -CITY DISASTER PREPAREDNESS PROGRAM
You can rely on LMCPays to keep your funds and records safe in any situation . We are
proud to say we have never experienced a data breach.
In the event of a city disaster, LMCPays can ensure you will always have access to your
funds . We can also provide loans to make sure the City is liquid as it deals w ith the
disaster.
Our in-house technology group can assist with any software or hardware issues , and our
in-house customer service team will be avai lable to help with anyth ing the City might
need.
15
TABS -IMPLEMENTATION PLAN
We can meet the target implementation date of July l, 2019.
We expect a four-week timeline from document execution to delivery and
implementation of the new lngenico terminals. Each terminal will cost the City $65. The
resources we would need from the City of La Quinta would be a project manager and
technical contact to ensure timely delivery and testing of the devices.
Implementation Phases
Step l -Account signing . We collect necessary business, banking, and underwriting
information. This information is keyed into our proprietary ERP system and is populated
on an MP A (merchant processing application). This is sent for electronic signature to the
account contact.
Step 2 -Account underwriting . The account is submitted to our in-house underwriting
team for approval.
Step 3 -Account boarding. The account is boarded to either First Data or TSYS and is
assigned a Merchant ID .
Step 4 -Deployment. The account receives one or more TIDs . LMCPays builds these TIDs
into new files which are installed in the payment terminals.
Step 5 -Shipping. The terminals are shipped directly to the recipient sites through an
insured, tracked method.
Step 6 -Training. Training is scheduled with a manager from each site and additional
training is provided to supervisors and additional managers as needed.
Step 7 -Go Live. A LMCPays resource will be on standby for each site's go-live date to
provide frontline responses to any questions or challenges.
Step 8 -CQI. Chosen revisits the implementation, examines any potential areas for
improvement, and solicits feedback from the City of La Quinta to assist in future
deployments.
The City will be provided with a dedicated Customer Relationship Manager during the
implementation. In addition, a Lead Technical CRM will be assigned to oversee the
technical components of the transition . Proactive support will be provided at all times
during the implementation and after the go-live date . Post implementation there will be
a dedicated support staff for both technical and general processing/reconciliation
related questions specific to the City.
After implementation, LMCPays will absolutely remain engaged. We are your service
provider, and it is our duty to our merchants to remain engaged at all times for the life
of the account. We look forward to a long-term partnership with the City of La Quinta.
16
TAB T -SE RVICE ENHANCEMENTS
l . We can assist in any disputes or chargebacks. 903 of our clients' chargebacks are
resolved in their favor.
2. We will provide next-day funding .
3. Our in-house technology department can assist with any issues that arise .
4. We can offer access to our sister firm , The LMC Group. The LMC Group is a
management consulting firm that can support the City in terms of operations ,
recruiting , marketing and branding, and social media. We would offer deep
discounts for these services .
5 . We can also provide technological resources through Chosen Technology Group
for your future needs .
6. We would be happy to sponsor City of La Quinta events.
17
TABS U-W -NO PROPOSAL
U: Banking Services Bid Form-No proposal
V: Sample Account Analysis Statement and Users Guide-No proposal
W: Relevant Cash Management Agreemen ts
18
TAB X-FINANCIAL STATEMENTS AND RATINGS
Kristen Carroll, Founder and CEO
LMCPays
5401 Tech Circle, 2nd Floor
Moorpark, CA 93021
857-540-1610 (t) kristen@chosenpayments .com
. October l, 2018
Karla Campos
Finance Director/Treasurer
City of La Quinta
78495 Calle Tampico
La Qui nta, CA 92253
Dear Ms. Campos:
This letter certifies that Chosen Payments/LMCPays is in good financial standing and
current in payment of all taxes and fees including but not limited to state franchise fees.
We are not in default on any loan agreement with any bank, financial institution, or
other entity.
If we are named fina lists for this contract, we will provide the City of La Quinta with our
confidential financial statements.
Sincerely,
Kristen Carroll