1. Insurance Requirements
Florida Workers’ Compensation policy is currently in place for Bank of America NA in
accordance with the law of the State of Florida. In turn, we maintain general liability coverage.
The bank shall have the right to self insure these obligations per policy wordings commonly
issued by the commercial insurance industry at the time of a loss.
2. Purpose
BA Merchant Services, Inc., a Bank of America Company, provides payment processing and
reporting through terminals, personal computers, electronic cash registers, PC Stand-Alone
and PC-Hub configurations, LAN systems, the Internet and Interactive Voice Response units
(IVR). Based on dedication and commitment to the processing industry, a substantial
investment has been made in advanced systems technology to allow us to deliver high-quality
payment solutions that meet the needs of our diverse merchant base.
BA Merchant Services, Inc. partners with Visa and MasterCard in marketing usage and
awareness campaigns for our Merchants. Visa and MasterCard have developed effective
campaigns to help constituents become aware of the State’s payment options. Because of the
scope of our business, we develop innovative technology for all types of businesses, no
matter what size. BA Merchant Services, Inc. serves every industry segment, from small
shops to large corporations with stores throughout the United States. We offer specialized
services for governments, e-commerce retailers, restaurants, hotels, drug stores, convenience
stores, supermarkets, and casinos, mail/telephone order merchants, oil companies, health
care organizations, universities and more. We routinely consult with merchants to keep them
abreast of Visa and MasterCard rules and regulation changes, and provide information and
updates on fraud prevention.
We are prepared to deliver the services outlined in this Request for Proposal. While other
financial institutions have sold or out sourced their merchant portfolios, Bank of America
continues to invest in and expand this successful business. BA Merchant Services, Inc.
formula for success is simple - we strive to build and deliver efficient and convenient services
As well, our Bank of America Treasury Management Team is capable of supporting the
electronic payment services needs outlined in the RFP. Out team, in partnership with BA
Merchant Services, will work together to ensure a smooth implementation process.
One advantage to working with Bank of America, is that we are familiar with the State’s
depository accounting structure as we work closely with the Treasurer’s Office to ensure our
systems and processes are operating effectively.
3. Contractor Responsibility
It is the intention of Bank of America to use our internal systems to provide the services
needed by the State of Florida as specified by the RFP. Therefore, we will not use
subcontractors to complete the requirements specified. Bank of America will provide
alternative service options for the State on a case-by-case basis where needs cannot be meet
by the bank’s proprietary network and services.
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4. Executive Summary
Bank of America Corporation provides a diversified range of banking and non-banking
financial services in the United States and most major markets. With total assets of $642
billion (as of December 31, 2000), Bank of America is the largest U.S. bank. Primary retail and
commercial banking operations are located in 21 states and the District of Columbia. We
serve 30 million households and two million businesses, as well as institutional investors and
government agencies. The bank also provides comprehensive international corporate
financial services for clients doing business around the world.
The State of Florida deserves a financial partner who can provide the highest level of service,
innovative ideas, technology, and e-commerce solutions, all at a reasonable cost. At Bank of
America, we are striving to make banking work for our clients in ways it never has before.
Specifically, we recognize that the State of Florida has unique needs and concerns that
require banking professionals with the experience necessary to get results.
BA Merchant Services, Inc., A Bank of America Company, and wholly owned subsidiary of
Bank of America NA has become a payments leader by responding to the needs of clients and
developing and delivering fast, efficient, industry-specific products and services. As a result,
Bank of America Merchant Services is currently the largest bank processor for credit and
debit card transactions in the country, processing more than 800 million credit card and debit
card transactions annually, originating from more than 250,000 million merchants worldwide.
In addition, over 150 other banks have chosen Bank of America Merchant Services to process
their merchants’ transactions.
We believe that having the “right” people at the State’s disposal will make the difference in
developing and maintaining a successful banking partnership. Our Client Team approach
makes Bank of America unique. Andrea Morris, located in Tallahassee, is the Bank of America
Merchant Services representative and primary contact for the State. Andrea’s experience in
working with a number of clients in North Florida and Tallahassee will bring expertise to the
State in addressing any financial concerns that may arise. Brent Chumbler, also located in
Tallahassee, is the State’s Client Manager. He is a key player in addressing the overall needs
of the State and currently works closely with the Treasurer’s Office in managing the State’s
Treasury Concentration Account and overall depository needs. Other key members of the
team that will work closely with Andrea and Brent are included in Section 8 of this response.
Bank of America has worked closely with Metavante Corporation (formerly M&I Data Services),
in the development of a proprietary product for Bank of America, to meet the needs of the
State. They are a leading financial services enabler – delivering virtually all of the technology
for financial services. Their solutions include electronic banking, Interactive Voice Response
(IVR), electronic presentment and payment, electronic funds transfer and card solutions. The
relationship with Metavante gives Bank of America the technology and strength to offer the
State a superior payment solution.
Bank of America has assembled a team to manage the implementation process for the State
and ensure a smooth transition. Our team is proud to have financial partnerships with the
following types of municipalities and government entities:
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School Boards
Tax Collectors
Cities
Treasurer of the State of Florida
Boards of County Commissioners
Clerks of the Circuit Courts
Boards and Universities
Various other municipal entities
Our experience in working with municipalities in Florida and other states around the nation
allows us to share best practices with the State.
Bank of America was a proud sponsor of the Florida Government Finance Officers
Association Annual Conference and will participate in the FL League of Cities conference later
this year.
Our client team members and Bank of America associates throughout the nation are
committed to the communities in which we live and work, and contribute our time and our
talents to show just how much we care.
In order to assist the State in their selection process, we have summarized a few highlights
from our response that we believe are advantageous to the State:

Pricing – We have provided the State with an aggressive pricing proposal for your
consideration.
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Funds Availability – Merchant transactions transmitted to Bank of America Merchant
Services by 11PM daily for Visa and MasterCard will be memo-posted and available to the
State on the next business day through our proprietary network, HostLINK.

Account Analysis – Bank of America will allow the State to utilize earnings credit
(compensating balances) to pay for Electronic Check transactions and Internet Gateway
transaction fees associated with this project. Bank of America will also offer a one-time
$5,000.00 account analysis credit to the State, should we be awarded this contract.

Competence – A local Management team with decision-making authority to meet the
State’s needs, including a dedicated Team and Client Manager with over 22 years of
experience in the North Florida and Tallahassee area.

Financial Responsibility – In an era of unprecedented consolidation in the financial
services industry worldwide, Bank of America remains one of the strongest banks in the
marketplace by all measures including net income, total assets, deposits, credit rating,
and key relationships. Powered by our capital strength and built-in safeguards, we
continue to provide the safest place for the State to bank. We have the financial strength
to deliver comprehensive Merchant and Treasury Management solutions and are
recognized as an industry leader.

Past Experience and Capability – Bank of America has provided financial services to many
states and municipalities, which have been successfully implemented through the skillful
monitoring of your Client Manager, Brent Chumbler and supporting banking partners. Our
proven implementation approach allows us to execute a customized plan for the State
without disruption.
Our team is prepared to address the needs and concerns of the State. We are excited about
the opportunity to work closely with the State on this project and want to be your financial
partner!
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5. Management Plan
Bank of America in an effort to ensure that all customer service, implementation, and
processing needs are being met for the State, will assign to the State the following key
personnel:
1) A Primary Sales Representative, located in Tallahassee, will handle the
implementation, training and ongoing high level needs;
2) An Account Manager will handle any and all day to day questions or concerns that
may arise including any necessary changes or research involving the State’s
relationship with merchant services;
3) A Regional Sales Manager that will be a secondary contact for the overall merchant
services relationship;
4) A Client Manager, located in Tallahassee, will oversee the total Banking Relationship
between Bank of America and the State. (See Section 8 for detail Management
Structure).
5) 24 hour, 7 days a week Customer Service Help Desk for immediate response with
equipment, statement inquiries, supply request, and account maintenance.
6. Quality Control
BA Merchant Services, Inc. is committed to providing quality service throughout our business
process. We manage and monitor not only systems availability, but also responsiveness and
accuracy throughout the process.
To eliminate key entry errors many of our systems now automatically upload from one system
to the next, so that the chain of opportunity for error is limited to the initial entry. Audits are
routinely performed on all accounts and out-of-standard conditions are analyzed by a crossdisciplinary team to identify and establish improvements.
In an industry that experiences annual customer retention of 76%, BA Merchant Services, Inc
is proud to report that our year-over-year retention for the last 6 years has ranged between 93
and 96.5%.
7. Organizational Structure
Bank of America will provide a team of associates to deliver the State of Florida and associate
agencies with the highest level of customer satisfaction. Our team is structured as follows:
Sales Associate
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June 25, 2001
Bank of America Commercial Card Services Team provides front line contact for product and
services for merchant processing. The State of Florida will have access to a local
representative to assist in the set up and implementation of new products and services.
Customer Support
BA Merchant Services, Inc. dedicates the greatest amount of its resources to customer
service. In fact, we offer merchants access to over 200 customer service professionals.
These professionals support the following positions and functions:

Customer Service Help Desk
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Dedicated Personal Account Managers

Equipment Management
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Risk Management and Fraud Prevention

Conversion/Implementation
BA Merchant Services, Inc. philosophy on customer service is: Excellent customer service is
not a one-time act. It is a habit. To that end, our goal is to maintain high-level customer
service no matter what size merchant or what time of day the merchant calls.
Customer Service/Help Desk Support
BA Merchant Services, Inc provides merchants with a toll-free Customer Service number that
is available 24-hours a day, 7 days a week, for all card types. Our specially trained Customer
Service Representatives, located in Spokane, are eager and qualified to answer any merchant
services-related question. Our Agents handle calls concerning merchant statements, billing,
chargebacks, and requests for statements. In addition, we have a special group that handles
all inquiries requiring off-line research. Also, to accommodate our diverse merchant base,
many of our Representatives can speak a second language in addition to English.
Account Management
BA Merchant Services, Inc. is structured to provide maximum attention to servicing and
maintaining accounts. In an industry that experiences a “normal” account retention average
of 75%, BA Merchant Services, Inc. is proud of its’ established run-rate of 94% retention. We
believe our success in this area is due to the personalized attention and care we take of
customers past the sales and implementation process and throughout the relationship with
us.
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Technology
BA Merchant Services, Inc. recognizes that this is an industry where the “one size fits all”
approach truly does not work well. We focus on providing an array of product and accounting
features to insure that our customers are delivered products that are easily integrated into
their existing structure. Currently we support twelve (12) separate terminal products, each
offering a different mix of features and capabilities. Additionally, we support dozens of ECR
interfaces, several PC products and many other specialized points of sale interfaces. This
permits us to select a product that is a good fit for each individual customer’s needs. Our
Product Development and Support Staff is well versed in our system and technical capability.
8. Management Structure
Andrea Morris
Vice President and Account Executive
Bank of America Commercial Card Services
Tallahassee, FL
Andrea is the Account Executive for Merchant Services in the Florida Panhandle and
Tallahassee. She is responsible for setting up and implementing credit card payment
processing systems for large corporations, organizations and government agencies in
Northwest Florida. Andrea has been an associate of Bank of America since 1984 and joined
the Commercial Card Services Division in February of 2000. Her previous banking experience
includes commercial credit analysis, commercial lending and client management, banking
center management, and regional retail sales and service management. She was selected to
manage and implement a pilot program for a new Retail Market Management System in 1997
and currently serves on the Client Retention Task Force in the Tallahassee bank. Andrea is a
native of Tallahassee graduating from Lincoln High School and receiving her BS degree in
business from the Florida State University. Andrea will be the State’s key contact for this
project.
Sabrina Dehlinger
Commercial Card Services
North Florida Regional Sales Manager
Vice President
Winter Park, FL
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Sabrina has been with Bank of America Commercial Card Services for a year and a half. She
brings to the bank 18 years of experience with competing merchant processors. Sabrina has
a very strong relationship with our banking partners and is a consultant on our Product
Council. She has responsibility for the training and management resources which will be
available to the State.
Jack Gilliam
Commercial Card Service
Vice President
Southern Region Sales Director
Winter Park, FL
Mr. Gilliam brings to the table 13 years of Merchant Service experience, with 9 years at Bank
of America. He has served in a sales management capacity for over 7 of those years. The
sales force under Jack’s direction consistently rates among the top in the country for new
sales volume and customer satisfaction. In addition to the Merchant Services background, he
has previously served in various capacities in the banking industry over the last 17 years.
Jack is a graduate of Florida State University with a BS in Marketing.
Eveline Zernetzki
Merchant Services; Portfolio Management
Officer
Winter Park, FL
Ms. Zernetzki brings 3 years of experience with Bank of America Merchant Services/Portfolio
Management. Eveline is the recipient of the Account Manager of the Year Award 2000 for her
dedication and excellent performance. She currently manages and supports Large Market
Merchants with sales volumes in excess of 50 million dollars. After the establishment of a
Merchant Service Relationship, her responsibilities include service, support, and facilitation of
maintenance requests, while personally making sure our clients' needs are met.
Brent Chumbler
Commercial Bank
Vice President/Client Manager
Tallahassee, FL
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Brent has 22 years of banking experience and has been with Bank of America for 12 years. He
is currently a Client Manager, for the Commercial Growth Group and is responsible for
supporting our municipal and government clients in Leon and the surrounding counties. He
is a graduate of the University of Mississippi with a B.A. in Mathematics/Accounting. He has
the knowledge and capability to address all of your needs from both a credit and non-credit
perspective. Brent will be the primary contact for the State.
Maureen Gallagher
Government Treasury Management
Senior Vice President
Tampa, FL
Maureen has 15 years of banking experience and has served in a number of areas with Bank
of America. Maureen is a graduate of Clarion University of Pennsylvania and has a B.S. in
Computer Science. She is the Government Treasury Management Team Leader, as well as the
Treasury Management Officer for the Treasurer’s Concentration Account. She will be
responsible for assisting the State with their treasury management needs and has offices in
both Tallahassee and Tampa.
Jeri Winkleblack
Vice President and Account Manager
Bank of America Corporate Purchasing Card
Tallahassee, FL
Jeri is the Account Manager for the State of Florida’s Purchasing Card program and is
responsible for managing the 44 state agency and 170 local government participant accounts.
The Bank of America Corporate Purchasing Card Program is a $350,000,000 program. Jeri
acts as liaison between state of Florida officials and the bank. She develops strategic plans
for growing business and acted as project manager for the design and implementation of the
bank’s first totally electronic commercial credit card program using Electronic Data
Interchange technology. Jeri, a graduate of Indiana University and an MBA candidate at
Georgia State University before moving to Florida in 1990, received Bank of America’s
Corporate and Commercial Card Services Top Achiever award in 2000.
9. Financial Strength
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Please see Bank of America 2000 Summary Annual Report.
10. References
Bank of America is pleased to provide references of states and municipalities in which we
have relationships. Please see Tab D for Client References.
11. Company Experience
Founded October 17, 1904, in San Francisco, BankAmerica Corporation is one of the largest
bank holding companies in the United States. BankAmerica Corporation and its consolidated
subsidiaries provide diverse financial products and services to individuals, businesses,
government agencies, and financial institutions throughout the world, and currently employ
over 90,000 people worldwide. We are a long-term player with dedication and resources to
continue as a worldwide market leader. During the past few years, we have greatly expanded
our resource base through a combination of merger activity, operational consolidation,
streamlining, and highly focused business strategies. Our financial strength, combined with
capitalization far exceeding required ratios, provides the stability you need in your business
partner. BA Merchant Services, Inc. is licensed to do business in the State of Florida.
BA Merchant Services, Inc., a Bank of America Company, and wholly owned subsidiary of
BankAmerica Corp., is one of the largest providers of credit/debit card services in the United
States. Beginning with the development of the first bank credit card, the BankAmericard in
1958 (which eventually became Visa), BA Merchant Services, Inc. continues to be a leader in
the bank card industry through its technology, customer understanding and product support.
Bank of America processes over 800 million transactions annually for over 250,000 merchant
locations.
Since our development of BankAmericard, we have continued to develop card products and
processing services that are responsive to consumer and merchant needs. Today we offer
merchant credit and debit processing services for all types and sizes of merchants in the
public and private sectors. Our services include electronic deposits, sophisticated point-ofsale platforms, industry-specialized products and electronic commerce.
12. Customer Service
At BA Merchant Services, we provide support for inquiry and assistance through our 24 hours
a day, seven days a week, specially trained Customer Service Representatives. They handle
calls involving all merchant related services including statements, billing, account activity,
chargebacks, discrepancies, balancing/reconciliation, equipment, terminal troubleshooting,
telecommunication issues, programming, batch assistance, hardware/software, PC and
internet processing. In order to accommodate inquiries requiring research, we have in place a
special group that will specifically work such items to ensure that answers or resolutions are
found.
In keeping our merchant protected as much as possible from chargebacks, we implemented
CADRE, our Chargeback Imaging System back in 1966. Our CADRE is the most advanced
imaging system in the country, incorporating all aspects of the retrieval and chargeback
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dispute process using advanced image-based LAN/WAN technology in connection with
artificial intelligence software.
At BA Merchant Services, Inc., we have an experienced staff of 25 within our Chargeback
Operation Center. In the event of a chargeback, a debit/credit notice is mailed advising the
business of the debit/credit to the business account. One-third of all chargebacks reviewed
by our staff are resolved and represented to the card issuer without ever requiring merchant
input. Those that do require merchant input, 99.9% are delivered with in 30 days of the
cardholder dispute.
BA Merchant Services is also staffed with Account Managers whom are assigned to provide
personalized service to our clients specialized needs. Your Account Manager is there to serve
as your liaison, a resource for resolving issues, to address any questions, concerns, or any
matter that cannot be resolved through our Customer Service Department/ support team. The
Account Manager has full accountability for the overall concerns and success of the accounts
and can help resolve technical problems and assist with any product or service changes.
13. Point of Contact
The Portfolio Manager responsible for customer support for the State of Florida will be Eveline
Zernetzki. She is located in Winter Park, Florida. Ms. Zernetzki brings 3 years of experience
with Bank of America Merchant Services/Portfolio Management. Eveline is the recipient of the
Account Manager of the Year Award 2000 for her dedication and excellent performance. She
currently manages and supports Large Market Merchants including municipalities,
universities and government agencies. After the establishment of a Merchant Service
Relationship, her responsibilities include service, support, and facilitation of maintenance
requests, while personally ensuring our clients' needs are met. Her direct telephone is
(407) 646.6276
14. Contact for Overall Relationship
The primary contact person assigned by Bank of America for the State of Florida will be
Andrea Morris. Andrea has been a Vice President with Bank of America Commercial Card
Services for 1-½ years. She is located in Tallahassee and has been employed with Bank of
America for 17 years. Her direct telephone is (850) 561-1774.
15. Technical Plan
A Payment Gateway will be provided that allows users of the State’s websites and IVR
systems to initiate payments for products, services and information. Consumers and
businesses will be able to use Credit cards, Debit cards, ACH Debit, and e-checks as payment
vehicles. Bank of America and Metavante have prepared the technical plan which follows.
The credit card processing component is a Bank of America product called eStores Solutions
– Settle Up. This product offers a secure interface for processing credit card transactions over
the Internet. Bank of America’s development relationship with Metavante Corporation
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produced both web-based and IVR-based applications will communicate with the Payment
Gateway utilizing HTTPS secure sockets connection with SSL 3.0 encryption. The Payment
Gateway will provide an API for use by State applications.
Please see attached diagrams.
Payment Processing Solution
There are several options housed within this payment solution in terms of the front-end
access and the payment processing and reporting streams.
In following the attached process diagrams, we begin discussion where the user is linked to
the bank payment site. Previous to this point, the state site (or other hosted site) has
validated the user and forwards all customer relevant information with the user to the
Payment Gateway.
The user connects via HTTPS connection and then selects which payment vehicle they would
like to use. Based on that choice, the Payment Gateway asks for data required to support that
payment type. Using the captured date, the Payment Gateway builds a transaction record.
The transaction record is then processed according to the payment type.
1) If ACH, an ACH transfer request is created and included in an ACH origination file to the
ACH processing system. A confirmation code is generated and provided back to the user.
All of the transaction data is provided to the Bank reporting engine for consolidated
reporting to the user.
2) If e-check, additional data elements are captured to support the e check format. The data
is included in the ACH processing stream. A confirmation code is generated and provided
back to the user. All of the transaction data is provided to the Bank reporting engine for
consolidated reporting to the user.
3) If Credit /debit card, we build transaction record and link off to eStores Solutions - Settle
Up and obtain authorization from eStores. The Payment Gateway receives the eStores
authorization code and provides back to the user. All of the transaction data is provided
to the Bank reporting engine for consolidated reporting to the user.
If we host the IVR solution, our IVR will interface with the Payment Gateway in the same way
as described above. However in this instance, the Bank will support the validation and
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authentication rules for the users. The State will have provided the information, or a way to
validate the information, to the Bank. Bank of America then creates the appropriate script to
capture data and feed the Payment Gateway as above.
If the State requires access to the data house above, that data is available through reporting.
We assume that most of the State’s needs will be met through the Bank’s consolidated data
reporting but this option is available for components of data.
Customer / Client Integration
The method of communication to the Payment Gateway system shall be a standard secured
socket connection via the HTTPS: protocol. The system requesting a payment authorization
will open a secure connection to the Payment Gateway, respond to a request for a user id and
password. Once logged in will perform an HTTP: POST method to transmit the required data
(i.e. agency requesting payment, item being purchased, customer ID, payment method,
payment information, etc. NOTE: This is where customer data is captured by the transaction
database). These items will be transmitted as simple name-value pairs. The payment system
will take this request and build a transaction record in the transaction database. The payment
system will then return a confirmation that the information has been received along with a set
of name-value pairs for the payment confirmation or rejection. Once the confirmation or
rejection has been returned to the requestor, the payment system will place this information in
the transaction database.
It is our feeling that this method of accessing the Payment Gateway will provide the most
flexibility and allow for integration with the widest variety of systems. A web based
purchasing system can access the Payment Gateway with ease, no matter which web server
and operating system combination is in use. By using a standard secured protocol just about
any other type of system (kiosk, IVR, WAP phone access, etc.) could access the Payment
Gateway.
In the event that a system does NOT have the current capability to create an HTTPS:
connection to the Payment Gateway and Bank of America will assist in creating any data link
necessary to process payment information. Bank of America, through our relationship with
Metavante, currently has additional capability for direct phone access with challengeresponse and caller-ID based security, X.25 communications links and multiple other methods
to connect to external systems.
Network and Data Security
Access to the Payment Gateway is through a secured connection (SSL) that is encrypted with
a certificate provided by VeriSign. Beyond standard data encryption for the communications
link, the Payment Gateway is further isolated from the internet by a firewall configured to only
allow connections to a specific server on the HTTPS: port, all other communications to the
gateway servers are blocked by the firewall. Once the data arrives at the gateway server it is
filtered through a second firewall that allows ONLY the desired Metavante owned and
maintained server to communicate with the actual payment-processing engine on the internal
network.
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Once the data is brought in to the Payment Gateway engine all sensitive information (i.e.
account numbers, bank card numbers, customer identifying information) is encrypted before
being stored in the transaction database. When a request for payment must be transmitted to
the card services vendor it is again encrypted using a certificate from VeriSign. The card
services authorization system is accessed only from specific Internet addresses and the user
name / password combination MUST be correct for the system to accept requests from that
Internet address.
All sensitive data that is stored in the database also remains encrypted when being
transmitted to the main data center, no sensitive information will ever be transmitted between
systems in a clear-text message, nor will it ever be stored in clear-text.
Hosting Options
Payment Gateway authorization and payment initiation services for credit/debit/e-check/ACH
debit will be hosted at Bank of America CIP/eStores. It is assumed the State web sites and
IVR applications are programmed by the State and hosted at State locations. The State has
the option to have the Bank host the payment pages for them if they can provide the data and
data validation rules to allow secure access.
Transaction Volume Capacity
Simultaneous transaction capacity has not been benchmarked. Based on current volumes, we
estimate our capacity at 200 simultaneous users. We are configured to process up to 1000
simultaneous users. The solution is very scalable, with the ability to add additional servers to
handle increased volumes.
System Fault Tolerance
The production data center at Metavante is connected to the outside world via a Sonet ring,
which uses duplicate connections to two different telephone company Central Offices. This
dual connectivity allows either one of the Central Office connections to go offline without
jeopardizing the actual connection to the world.
All production equipment – routers, firewalls, load balancers, servers, and network attached
disk arrays are protected from failure by having either duplicate systems with hot-failover or
by being clustered. Production equipment is protected from power failure by an in-building
UPS system, which includes an automatic switchover to an internal electrical generator in the
case of a power failure.
All production, QA and test servers must meet the minimum requirements of a duplicate
power supply, dual network interfaces, and RAID disk arrays to minimize the possibility of
data loss.
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All production data is backed up nightly to a tape robot.
Integration and Test Environment
It is our intention to provide an integration and testing environment that is virtually identical to
the production environment. For cost savings the integration and testing environment will
NOT be fault tolerant, nor will it have any hot backup capability. This environment is
configured and built to completely mirror production, including all external connections,
firewalls, and number of server environments.
Beta Testing Environments And Client Acceptance Methodologies
Bank of America’s development partner, Metavante, supports an iterative testing process for
all service implementations. The process includes several testing phases; each designed to
ensure operability and desired results. The phases include: unit, system and acceptance
testing and an optional pilot release phase.
The unit test phase consists of tests to ensure accurate processing and desired results at the
unit code level. Bank of America and Metavante technical staff ensures the functionality
according to specification and requirements. The system test phase ensures seamless
operation of the new code or instructions in the context of the entire system. The acceptancetesting phase involves the State or agencies’ review of the system including operation,
presentation and business rules. We next recommend a pilot phase to allow external users to
implement and utilize the system prior to general product availability.
In each phase, the project managers, development and QA resources support the testing
process and track any issues, comments and resolutions. Any required change orders are
documented, submitted for approval and discussion, and incorporated into the overall project.
Ongoing status and issue reports track progress of the testing efforts.
16. Action Plan
Bank of America’s action plan for the State of Florida is flexible and complete. It can
accommodate the needs of large and small agencies. With direct relationship with each
department, state agency and local government, we can provide a plan that insures
development or expansion per individual need.
1) Focus on increased utilization of Credit Cards as a payment method at Points of sale.

List of all departments, state agencies and local governments that accept or have the need
to accept credit cards will be made available, in order to best measure implementation of
the credit card process.

All retail locations to display accepted card logos.

All mailings will present option of payment using credit cards. Mailings will also include
direction to available web sites to increase visibility / utilization of credit cards. This
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includes event season tickets, registration, alumni events, medical fees and various
contributions.
2) Focus on training and continued training.

Initial implementation training

All departments are to be identified and designated for training.

Schedule to be developed to track training progress.

Continued training- as training is required, communication to designated Account
Manager / Activation Team to complete training as appropriate. Local representative to
conduct training as needed.
3)
Installment of equipment and phone lines.

Initial installation of project.

Develop list of departments, state agencies to be installed.

Timetable of installation to be developed in tandem for overall project as well as individual
agencies. This will enable Bank of America representatives, State of Florida
representatives and phone company representative to schedule accordingly.

On going installation process, POS system added as needed.

Identifying new point of sale locations. State representative contacts Bank of America
Account Management and schedules accordingly with local Phone Company. Schedule of
installation will be developed in order to measure off/ on schedule conditions
4) Flexibility to meet individual agency needs and timetables.

Designated Sales Manager, Sales Representative and Account Manager to be main point
of contact.

Forty merchant account representatives spread geographically throughout the state. Four
regional offices are located in Ft Lauderdale, Orlando, Tampa and Melbourne.

Phone activation center as well as twenty-four hour customer service availability to
support field representatives.
17. Start-Up and Implementation
Bank of America assigns a dedicated team to handle each portion of the implementation
process. This team is strategically placed through out the state for training and set up
purposes. Each team consists of skilled training and strategic planning personnel which
consistently work in the Merchant Payment area and are experts in the field dedicated to
providing both timely and proficient service required for implementation of Payment Systems
and Solutions.
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Timetable is indicated in “Accomplishing RFP” (section 18). However, roll out dates for
implementations are flexible, as this process is dependent upon client need. All information
must be obtained from the State of Florida with ample time before targeted
conversion/implementation date of November 1, 2001. Training of all affected personnel will
begin in each area required and those that the client deems necessary during the month of
October. Dates will be set for each training session according to individual group or
department availability encompassing the need to train with the highest level of participation
while causing the least amount of disruption to the normal flow of business for each
department or group.
18. Accomplishing RFP
With full cooperation by the State of Florida, Bank of America will provide the resources
necessary to accomplish the request on this RFP. It is important that the State provides the
information to completely and timely to issue the completion of timeframes needed.
Date
Task Description
Responsibility
Day 1
BA Merchant Services receive signed contract
BAMS/State
Day 1
BAMS questionnaire will be complete for each location
BAMS
Day 2-10
The State returns detail information documentation
State
Day 7-15
Rollout plan is present by BAMS to State.
BAMS/State
Day 16-30
Prepare training schedule for distribution to locations
BAMS
Equipment shipped to locations
Training materials distributed
Training for all locations
Bank of America will schedule a group meeting or individual meetings with the State and its
participating agencies to obtain information to ensure minimal disruption to the existing
business.
19. Goals of Deployment Strategies
The fundamental function of CIP (Customer Initiated Payments) is to collect payments from
multiple sources and transfer them to Bank of America in the fastest, most precise manner
possible — that is, electronically. Though tailored to the payment administration needs of
individual corporations, CIP works, in general, as follows:
1) Remote locations enter payment and entitlement information using one of several devices:
TouchTone phone input, calls to a toll-free voice operator (who enters the information as it
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is called in), direct entry through a personal computer (PC) or host-to-host transmissions.
To ensure data security, the individual making entry inputs unique identifiers and
passwords.
2) Entitlement information is sent electronically to the bank's host computer where it resides
until the end of the business day. It is here that the file is converted to Automatic Clearing
House (ACH)-standard format.
3) Each evening, the ACH file is sent from the Bank to the State’s account causing the
account of the payer to be debited.
4) CIP collects critical payment and posting information along with the funds transfer, united
into a single ACH file. The ACH file format is compatible with any number of existing
platforms — including legacy systems — and provides the core for customized reporting.
While the payment is transferred to the Bank, related information, organized the way the
State desires, can be transferred to the State or agencies as part of a consolidated
transaction detail.
5) If funds transfers are not received at a pre-determined time, or if other anomalies occur,
faxed reminders or system flags are initiated automatically. Likewise, transfer
confirmations can be initiated and sent to multiple locations.
As the above steps illustrate, CIP does not disrupt payment process flow. Instead, it interjects
technology into existing procedures in order to strengthen and refine them. It is not a case of
re-inventing the wheel; it is a case of taking the processes that already exist and improving
them, simplifying financial administration immensely.
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Figure 1. Overview of CIP
Features and Benefits of CIP
The features and benefits of CIP are many, relating to virtually every area of the payment
procedure. In every instance, they contribute to a more efficient process — faster and more
accurate, cost-effective and convenient.
Standout features and benefits are as follows.

Maximized Use of Current Technology — CIP, as provided by Bank of America, does not
require an excessive investment in technology or excessive retrofitting of legacy systems
on either the part of corporation or the bank. This is possible, in part, because existing
equipment is used for input. This is a strategy that precludes capital investment and
requires a lessened learning curve on the part of the employee. Neither is there a need to
invest in translator software or upgrade platforms, as is the case in Electronic Data
Interchange (EDI).
The flexibility and compatibility of the ACH file format plays a role in easing the transition,
too. The format enables CIP to "fold" into a wide-variety of existing systems — accounts
receivable, general ledger, etc. — with the same minimum of effort and investment.
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
Tightened Security — CIP utilizes unique user identifier and password protection when the
payer makes an entry. There is no need to enter credit card information or other sensitive
banking information. Levels of security can be adjusted according to the individual’s
standing within the organization.

Reliable, Accelerated Funds Availability — Payments are sent automatically on a daily
basis, consistent transfer that is rapid and ensures that funds arrive in the States account
when both payer and payee expect it. The use of funds for the organization is thus
maximized. Because exception notifications and payment reminders are automatically
generated and can be sent to the State and payer alike, there is less chance for payments
to "slip through the cracks" for any significant length of time. Lost invoices and
unforeseen mail delays become little more than a bad memory.
Additionally, CIP combines the flow of funds and information into one electronic stream
that reduces overhead, paper handling/processing and reliance on administrative
personnel to manually propel the information to its destination. This is a benefit for the
bank and the State as well: automated delivery of ACH files to the bank minimizes
demands on bank operations staff.
If the payment amount is pre-determined, CIP uses a number of different techniques to
notify the user that the correct amount has been entered, eliminating errors before they
arise. For example, an operator reads back the payment amount to users of the toll-free
voice line immediately after they call it in. A computerized voice does the same for those
using TouchTone input.
Additionally, users of all three input methods may validate payment entries through use of
Check Digit Calculation. In this scenario, the payer sums the individual digits in the
deposit amount (for $8762.35 this would be 8+7+6+2+3+5 = 31). He or she then adds this
figure to the digit count of the deposit amount to arrive at the Check Digit. In our example,
the digit count is 6, so the Check Digit is 37 (6+31).

Customized to Client-Specific Needs — CIP can be tailored to the requirements of the
user. This includes front-end entry, where almost any entitlement information can be
captured as part of the input script. Welcome banners and screens may be made
company-specific. Customized, digitized voice scripts designed to fit a particular
application are available. So is company-specific support (for more information on this,
consult the final section of this paper, "Advantages of Using a Qualified Technology
Partner").

Comprehensive Reporting Potential — The flexibility of CIP is perhaps most evident in the
capability of the reporting it provides. Information entered into the system can be turned
easily into meaningful feedback on A/R history, discounts, unit sales, royalties, rental
schedules, posting information — in short, any type of associated data the client chooses
to collect.
Reports can be delivered according to a user-specified schedule in traditional hard copy
format, or on-line, electronically. This kind of organized feedback provides clients process
control not previously possible. Information also can be provided in a format that is
compatible with off-the-shelf, general market spreadsheet and database files.
20. Roles of Selected Contractor
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Bank of America has pursued an aggressive strategy of growth simultaneously with
upgrading our system architecture. Our credit and debit processing has achieved 14.5%
growth in 1996, 16% growth in 1997, and 23% growth in 1998. During this growth time, we
continue to maintain a customer retention rate of 93-96% against the industry standard of
76%. We have built and implemented a state of the art chargeback and retrieval system,
integrated customer service support platforms and a new propriety-processing switch.
BA Merchant Services, Inc. understands the need for consistent and reliable systems. To
issue the authorization and settlement of transactions, we have alternative procedures during
downtime. Our systems provide backup routing and authorization alternatives, ensuring that
an authorization response occurs for every transaction. The network routes transactions via
multiple paths, decreasing the impact of trouble spots on the network.
The Bank of America relationship built with Metavante Corporation leads to the opportunity to
provide the Interactive Voice Response (IVR) to the State directly from Bank of America. This
technology allows the State to offer 24 hours, 7 days a week processing of transaction via the
telephone. This product can be customized to meet the needs of the agencies as individuals
while offering a convenience fee solution.
In October 1999, we announced our new “Internet Order Center” now referred to as “e-Stores
Solutions”. The new platform was designed to revolutionize the availability of e-commerce
solutions for the small to mid-size merchant. Our streamlined implementation process brings
a truly point-click utility to the merchant set-up process. This product provides Internet
access for credit card and electronic check acceptance.
Our client team is experienced in understanding the needs of our customer, determining the
product that meets their needs and facilitating implementation. While product versatility is
essential, the ability to fund accurate and promptly along with superior customer service
establishes Bank of America as a lead performer in the financial and payment processing
industries.
21. Total Solution
Bank of America combines cutting edge technology and a broad scope of resources with the
talent and creativity of our client team to provide total solutions to our clients. Our company’s
42 years of experience in credit card processing provides the knowledge necessary for our
client team to develop the appropriate suite of payment processing systems for our clients
and insure these systems in turn meet the needs of their customers. We currently provide
services for over 250,000 merchants across the country, processing over 500 million credit
and debit card transactions per year.
Our client team was selected based upon their specific areas of expertise and experience.
The client team analyzed the payment processing requirements outlined by the State of
Florida as specified by the RFP and has developed a total solution to meet these needs as
outlined and recommended in this proposal. The intention of Bank of America is to utilize our
internal systems to provide this total solution. Bank o f America recognizes the changing
needs of our clients and will provide alternative service options for the State on a case-bycase basis where solutions cannot be provided solely by the bank’s proprietary network and
services.
22. Facilitation of Payment Acceptance
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BA Merchant Services can provide credit cards transaction, settlement, and dispute, refund
and deposit detail information at statewide, agency and sub-entity level. The Daily Detail
Activity Report contains unique location ID numbers and “doing business as” name, credit
card deposit amount and number of transactions, and adjustments by location. This report is
available in paper or electronic format (Excel, database, or text delimited). Merchant Services
can present this daily report at the statewide, agency and/or entity level.
23. Processing Requirements
The Payment Gateway will assign and record a transaction confirmation number for each
transaction. This confirmation number will be provided back to the application and will be
used to uniquely identify individual transactions. The payment data, GL data and confirmation
numbers generated by web and IVR applications will be combined on a daily basis with POS
data via a consolidation process at Bank of America.
The consolidation process at Bank of America will provide for tracking all transactions to the
deposit number or settlement batch.
24. Point of Sale
To make sure that merchants can proceed with business uninterrupted during any type of
downtime, BAMS provides each merchant a Merchant Guide that includes downtime
procedures for obtaining authorization and depositing sales transactions.
Authorization
At times we may experience internal communication problems, scheduled down times, or
network problems. The VAP and the MIP provide backup routing and authorization
alternatives, ensuring that an authorization response occurs for every authorization
transaction. In each case, the network routes transactions via multiple paths, decreasing the
impact of trouble spots on the network.
Visa guarantees 100% satisfaction against stringent performance penalties with their VAP
system, operating it 24 hours a day, 365 days a year, with 100% back-up capability. No other
system offers such a guarantee. The VAP is linked to Visa’s Interchange Centers (VICs),
which are also backed up at each location in San Mateo, California, McLean, Virginia, and
Basingstock, England.
HostLINK
The BAMS Data Center in Foster City, CA uses Hewlett-Packard Business Recovery Services
Facilities in Federal Way, Washington, a suburb of Seattle/Tacoma area. Hewlett-Packard
provides dedicated equipment for BAMS’ use in a secure modern and convenient facility. In
addition, BAMS has the Visa VAP onsite to provide authorization links to card issuing
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associations. MCI 800 service provides merchant terminal dial-up service via t1 lines at MCI
Operation Centers in Los Angeles, California.
If the BAMS Data Center is unable to provide services due to a disaster, BAMS will activate the
Hewlett Packard Business Recovery site by implementing our Disaster Recovery Program and
dispatching BAMS Data Center System Engineers and support staff to Federal Way to bring
up backup systems. It will take 48 hours to restore the system entirely with backup files
retrieved from off-site storage and to configure networks to reroute transactions. This backup
system will operate in production, processing transactions and providing BAMS units with
transaction information.
Settlement
TSYS has a 48-hour restoration commitment with the following in place for disaster recovery:

Battery generator back-up system

High-tech fire-warning system

Duplicate software, system, and batch tape storage in two offsite vaults

Off-site back up processing facility
Equipment Type
Data Card Jigsaw w/Debit & Printer
$500.00 Purchase fee
$25.00 Rental fee
Hypercom T7P/Printer
$450.00 Purchase fee
$20.00 Rental fee
S8 PIN Pad (w/6’ cord)
$180.00 Purchase fee
$5.00 Rental fee
Tranz 380
$350.00 Purchase fee
$15.00 Rental fee
Tranz 380x2 Terminal
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June 25, 2001
$20.00 Rental fee
Verifone 250 Printer
$250.00 Purchase fee
$12.50 Rental fee
Verifone 900R Printer
$250.00 Purchase fee
$12.50 Rental fee
Verifone 101 PIN Pad
$130.00 Purchase fee
$7.50 Rental fee
Verifone 102 PIN Pad
$130.00 Purchase fee
$7.50 Rental fee
Verifone 301 PIN Pad
$220.00 Purchase fee
$10.00 Rental fee
If equipment is rented from Bank of America, we are available 24 hours a day to service or
replace terminals at no charge. Replacement equipment issues are resolved with a call in to
the Help Desk, and a VRU prompt to Point of Sale Equipment personnel with experience to
resolve the problem. Normally the problem can be resolved with guidance from the POS Help
Desk. In the event that a terminal swap is necessary and requested, a terminal is shipped.
Ninety-eight percent (98%) of the terminal replacements are shipped on the same day that the
request is received. Terminals are shipped for the next-day delivery.
For equipment owned by the state, a maintenance program is offered that provides the same
coverage described above for a minimal fee $5 a month per piece of equipment. For
equipment purchased from Bank of America there is an initial coverage of 1 year after which
point a maintenance agreement can entered into.
All supplies for the terminals and printers are provided free of charge
25. Interactive Voice Response
Existing IVR applications can be modified at the State’s expense to utilize the Payment
Gateway using HTTPS and FTP.
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If the State desires that Bank of America host a current or not proposed IVR application,
additional expenses will be incurred. We will need to be passed the expense along to the
State. Bank of America is willing to host such applications but until they are defined it is
unknown how much development would be involved and how much transaction revenue
might be generated by any particular application.
26. Internet
The State web site will provide a link to the Payment Gateway. The Payment Gateway will
then determine the preferred payment method and collect the associated data. For each
successful transaction, the State web site must provide all data required for GL reporting to
Payment Gateway over the HTTPS connection.
For credit, charge and debit cards the Payment Gateway will validate the card using eStores
and communicate success or failure to the user.
For e-check and ACH debit options the Payment Gateway will perform validation on the
routing transit number.
Successful transactions will receive a unique confirmation number, which will be used to
track the transaction through settlement and into the GL reporting stream.
27. Debit Cards
Debit Card Networks
Interlink®
Explore®/Star®
Maestro®
Shazam®
AFFN
MAC®
NYCE®
TransAlliance (Accel) ®
CashStation®
PulsePay®
TYME®
MagicLine®
Bank of America can accept and process for all existing debit cards (Visa, MasterCard check
cards) issued in the United States, as well as international debit and credit cards. Check
cards are processed through the same processing stream as credit cards and do not require
the entering of a Personal Identification Number (PIN). Other debit cards require a PIN be
entered and require terminals be equipped with appropriate PIN pads. When used as a debit,
transactions can only be done face-to-face with card present. Check cards can be processed
not card present only when used as a credit card transaction.
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28. Other Electronic Payments
Provide details of any system Proposer offers directly or indirectly for state agencies to
accept payments by electronic check, virtual check, or other means whereby the consumer
may enter checking account information through point of sale or the Internet.
Electronic Check – Point of Sale
Bank of America POS Check Conversion allows for the moving of paper to electronic
processing. This service converts consumer checks to ACH debits with automatic credit to
your account. The conversion process is simple: swipe a check through a check-reading
device, obtain the customer’s written authorization to debit their account, stamp the check
“VOID”, and return the check and copy of the authorization to the consumer. The consumer
debit and the credit to the State’s account will process electronically. A detailed overview of
this service, including equipment requirements, security, settlement and returns processing is
included in the attachment section of this proposal.
This service is currently in pilot and would be available to the State in December 2001. Check
Guarantee is currently not an available option.
In addition to our POS Check Conversion service that offers ACH settlement, BA Merchant
Services is developing an integrated solution for check conversion utilizing Vital Processing
Services and the Visa POS Check platform. This solution will enable clients to accept credit
cards, debit cards and checks. Visa is actively soliciting banks to participate in this system
by developing direct links into their account servicing platforms. To date, many banks have
completed the necessary development and others have committed to perform this
development in the near future.
With the Merchant Services product, checks that are presented for conversion will be routed
against the Visa POS Check Platform. If checks are drawn on “participating” Visa banks and
are authorized, they will be settled through the Visa network real-time. If checks are drawn on
“non-participating” Visa banks, they will be routed to a Third-Party vendor for authorization
and converted to ACH items. Regardless of routing, the service will offer both “Conversion
with Verification” and “Conversion with Guarantee.” In the first, the risk is borne by the
merchant; in the second, the risk is borne by the guarantor. There will be a price differential,
yet to be determined, between these two levels of service. BA Merchant Services is targeting
to pilot this product during the 2nd quarter of 2002.
Electronic Check - Internet
A Payment Gateway will be provided that allows users of State websites to initiative payments
for products, services and information. Consumer and businesses will be able to use credit
cards, debit cards, ACH debit and electronic checks as payment vehicles.
A detailed description for electronic checks is included in our Technical Proposal response,
question 15.
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29. Convenience Fees
BA Merchant Services, Inc. is supporting many government entities that are currently using
convenience fees to defray the costs of additional payment options that offer convenience to
their constituents. Generally speaking, the Visa/MasterCard associations will not permit
convenience fees that “disadvantage the brand relative to other payment methods through a
single payment stream.”
While controversial with Visa, many government entities are currently collecting consumerpaid convenience fees for opening up access through Internet and Interactive Voice Response
(IVR) systems. Convenience fees may not be charged in an over-the-counter or mail-in
environment unless the same fee is charged to those paying by cash and/or check.
Visa and MasterCard have not yet written specific regulations and guidelines for processing
government transactions. Traditionally new markets are allowed to mature naturally for a
period of time prior to regulatory changes that address the specifics of the industry. This
permits ample time for the Associations and Industry to exchange critical information and
helps to prevent inappropriate regulations.
BA Merchant Services, Inc. will work with the State of Florida and their attorneys, as needed,
to explain and define the Association’s position and how we have successfully implemented
these programs. This will assure full compliance with rules and regulations of the
Associations.
By card type, the methods indicated are the common ways of establishing the amount of a
convenience fee:

Fixed amount for all transactions

A percentage of the total transaction

A tier charge based on a fixed range of sales
All of the above convenience fee formulas have successfully been implemented by BA
Merchant Services, Inc. for the credit card networks. Most debit card companies prohibit PIN
less debit card transactions. Each agency’s requirements and the IVR developer ability to
implement that formula may determine the convenience fee calculation formula. BA Merchant
Services, Inc. offers either option.
30. Standard Reporting and Data Access
Merchant Services has a ReportLink system that provides:
1) The Daily Detail Activity Report contains unique location ID number and “doing as
business” name, credit card deposit amount and number of transactions, and adjustments
by location. This report can be in either paper or electronic format (Excel, database, or text
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delimited). Merchant Services can present this daily report at the statewide, agency and/or
entity level.
2) The Monthly Summary Report contains the location unique ID number and “doing as
business” name, location address, credit card transaction broken down by card types in
electronic format (Excel, database or text delimited). The report shows credit card
transaction amount, number of transaction and average ticket for Visa, MasterCard, JCB,
Diners, Debit card, Visa and MasterCard Cash (cash advance), Discover and AMEX (only if
Discover and AMEX are settled through Bank of America Merchant Services). Merchant
Services can present this daily report at the statewide, agency and/or entity level.
3) Merchant Services provides a monthly Merchant Statement for each location showing
credit card activities on the Direct Deposit Account (DDA). The credit card activities
include credit card deposits, refunds, chargebacks, and service charges pertaining to
Merchant Services.
4) Merchant Services provides a custom monthly Interchange report showing credit card
deposits and refunds at the association level and detailing down to the individual location
level. The report shows each location discount rate and break down the Visa and
MasterCard transaction (amount and number of tickets) into each qualified interchange
category. Merchant Services can provide the monthly interchange report in Excel or
database format.
Merchant Services will work with its merchants to accommodate custom reporting in
paper or electronic format but not limited to Excel, database or text delimited format.
5) Merchant Services can provide monthly management and monthly, quarterly and yearly
summary report by card type, sales volume and average transaction broken out by card
type that includes overall average transaction in paper or electronic file but not limited to
Excel, database or text delimited format.
Merchant Services also offers the Merchant Services On-Line System that provides on-line
transaction detail access through the Internet.
Phase One will provide transaction inquiry for merchants using a VAP, VisaNet, VirtualNet,
HostLINK, MAPP or NDC to process their transactions. Since the transactions are being
delivered to the bank directly from these front-end processors, all card types will be
represented. The bank will have data dating back to April 1, 2001.
The State will be able to create a query based on Batch Number, Merchant IDand Date,
Terminal ID and Date, or Card Number and Date.
The data returned will be: Card Number (truncated), Transaction Amount, CashBack Amount,
Original Authorization Amount, Transaction Type, TransactionEntry Method, AVS Result
Code, Currency Code, Transaction Date, TransactionTime, Authorization Code, Transaction
ID, Batch Number and Terminal ID.
Historical data from HostLINK will not include AVS Result Code, Transaction ID, Cash Back
Amount, Currency Code and Original Transaction Amount, as those data elements will be
included in the transaction files by the end of July.
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Data can be viewed or printed from the user's browser, downloaded in a number of
preformatted file types (Excel, text, etc.) to the user’s computer, or e-mailed as an attachment
to the user.
This will be a manual transaction inquiry service until we release Phase Two, currently
scheduled for the Fall.
Phase Two will include transaction data from TSYS including Interchange Reporting, ACH
Reporting, Settlement Reporting, and Chargeback Reporting. We will also be delivering to
merchants their statements electronically if they are registered for the service. Merchants will
be able to self-register for any of over 130 preformatted reports in addition to creating their
own transaction inquiries described above.
31. Funds Settlement and Reconciliation
A separate ACH transfer for each agency’s transactions can be provided to the State, by
merchant number or terminal id number. The merchant number or unique location code
assigned by the State or agency can be provided in the ID field of the ACH Detail Record for
each batch.
POS, IVR, and Internet credit card transactions are captured at time of authorization and
settlement, and can be tracked through our internal systems and through the Vital Processing
Network. Vital will generate the actual settlement entries, which are transmitted to Bank of
America directly. This direct transmission allows us to offer the State to receive quick
availability to funds for VISA and MasterCard transactions.
Electronic Check transactions will be processed through our payment gateway, and a NACHA
formatted file will be provided to Bank of America for processing. Reporting will be available
to the State via the Web. Settlement transactions will be posted to the State’s Concentration
Account (or other designated account) at Bank of America. A BAI transaction code may be
utilized to report the settlement transaction, including the agency merchant number in the ID
field.
Bank of America currently has the capability to assign or accept a unique number. This data
could be provided in the “ID” field of the settlement entry. The “ID” field allows for 15 numeric
characters. The first 5 digits are reserved for the Merchant Bank Identified, with positions 6 –
15, available for the state’s unique location code or identifier. This data can also be provided
to the State via a BAI transaction.
32. Daily Settlement and Reconciliation File.
Bank of America currently provides daily settlement reconciliation file pertaining to credit card
transactions. We do not currently provide reporting with the specifications indicated in
Attachment 7. However, we have the capability to produce these reports based on elements
gather at the front end of the transactions. Internet and IVR transactions have the most
flexibility and capability to produce information request. However, we are confident that we
can meet the needs of the State on all transaction types. Merchant Services can present the
data and accommodate any future modification in any specified file layout as long as we have
the required data elements.
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33. Chargeback Procedures
In the event of a chargeback, the merchant is mailed a debit/credit notice advising the
business of the debit/credit to the business account. Bank of America Merchant Services
follows all rules published by Visa and MasterCard. Nearly 40 years of experience in payment
processing has resulted in a level of chargeback expertise unequaled in the industry. At Bank
of America Merchant Services, we have an experienced staff of 25 within our chargeback
operation center.
One-third (33%) of all chargebacks reviewed by our staff are resolved and represented to the
card issuer without ever requiring merchant input. Of those that require merchant input,
99.9% are delivered to our merchants within 30 days of the cardholder dispute. If merchant
input is required, BAMS will provide the merchant with the transaction data necessary to fulfill
the request.
To demonstrate our commitment to keeping our merchants as protected as possible from
chargebacks, we implemented CADRE, our Chargeback Imaging System in early 1996.
CADRE incorporates all aspects of the retrieval and chargeback dispute process using
advanced image-based LAN/WAN technology in connection with artificial intelligence
software.
34. Pricing
Please see Pricing Schedule in Tab F.
35. Availability of Funds
BA Merchant Services, Inc., will deposit the State’s funds through the ACH file submitted to
your designated Bank of America depository account. We will transmit the State’s files
through HostLINK, (Merchant Services proprietary network), for most of the credit card (Visa &
MasterCard) transactions on your account. However, a few of the State’s locations or
agencies may not be supported on our network and may need to be routed through another
network platform provider for solutions that we can’t support directly. These transactions will
add an additional 24-hour delay in posting to your depository account.
Listed below is the Schedule of Deposits:
DEPOSIT SCHEDULE FOR HOSTLINK ™ (Bank Proprietary Network)
Day of the
Week
Close & Balance
Batch for
Prepared for the State of Florida
RFP # 00/01-07
Funds credited to
State’s depository
29
Funds hard post to
State’s depository
June 25, 2001
Processing
account (Memo Post)
account
Monday
11:00 PM EST
Tuesday AM
Tuesday PM
Tuesday
11:00 PM EST
Wednesday AM
Wednesday PM
Wednesday
11:00 PM EST
Thursday AM
Thursday PM
Thursday
11:00 PM EST
Friday AM
Friday PM
Friday
11:00 PM EST
Monday AM
Monday PM
The following chart shows the funding (deposit) time frames for credit card transactions
settled through HostLINK.
State
Bank of America DDA
Visa/MasterCard
Diners Club, Carte
Blanche, JCB
American Express,
NOVUS Card
Brands/Discover
Next Business Day
Based on Merchant
Agreement with Issuer
Based on Merchant
Agreement with Issuer
Electronic Check transactions accepted via the Internet (with transmission cutoff time of 5:00
PM EST), will be processed as “one day” settlement entries and credited to the State’s
depository account. For example, Internet captured transactions transmitted to the bank by
5:00 PM EST on Monday, will be memo posted and available to the State on Tuesday during
the business day.
Electronic Check transactions accepted via our POS Check Conversion service follows the
same schedule as Internet transactions. Transmission must be received by 5:00 PM EST for
next day credit.
36. Cover Sheet
Please see Tab A for Cover Sheet.
37. Drug-Free Work Place Certification
Please see Tab D for Drug-free Workplace Certification.
Prepared for the State of Florida
RFP # 00/01-07
30
June 25, 2001