Who is the merchant of record?
The city should be able to say, in writing, who is merchant of record, which bank account receives settlement, and who can issue a refund or respond to a chargeback. GovtPortal implementations are set up so public funds are reconciled to a city deposit report. The exact merchant structure depends on the program selected and should be confirmed in the proposal.
- Where funds settle, and on what schedule
- Whether any amount is held back
- Who sees refunds and chargebacks without a support ticket
- How the month-end report ties to the bank deposit
Why the title on the contract matters
Merchant of record is the party that holds the card-processing relationship with the acquirer. Settlement is the movement of funds to a bank account. Those can be the city, a payment facilitator, or another party named in the agreement. A portal can be GovtPortal while the merchant is a different legal entity. Clerks get into trouble when a proposal uses “we process payments” without saying which bank account is credited and how many days after the sale.
What to verify
- The legal name of the merchant and the acquiring bank or processor.
- The account number’s owner: city, school, authority, or vendor.
- Funding timeline for card and for ACH, including weekends and holidays.
- Whether convenience fees settle to the same account as the principal or to a separate account.
- Reserve, hold, or rolling reserve language, if any.
- What happens to in-flight payments if the contract ends.
How GovtPortal handles the question
The proposal states the merchant, the settlement path, and the fee model for that city. Processing paths include Fiserv and TSYS. If a finance director needs the acquiring bank’s legal name for a procurement file, ask for it before the vote.
Timing
Underwriting and merchant paperwork often take longer than the website. Start that packet when the council discussion starts, not the week you want the page public. A hosted page cannot settle until the merchant account can fund.