6.1b. ERMUSR 09-09-2014 - Laserfiche WebLink

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Paymentus buyout information I have attached the amendment that I received from Paymentus, after two separate discussions with their staff and CEO regarding our request for a revised payout amount. As you can see, they are not inclined to offer anything more than a"discount"of 10%, for a total of$97,493, revised from$108,326. The reasons they offer are that 1)we are committed to a three year contract ending June 2016 and we are the ones breaching the contract, 2)the plans and staffing they currently have in place are based on the current contracts and we are untimely in changing that basis. While we are not pleased with the buyout amount they have provided, the leverage is on their side. The contract is attached which states that they have exclusive rights to process our credit card transactions for the term of the contract. It is in Definition 1.1 of the contract where it states that Paymentus is"to be the exclusive provider of services", which exempts us from using NISC instead of, or even in conjunction with, Paymentus. Looking forward to our processing with NISC and the benefits we will recognize in processing the credit card transactions through them, I have attached the Cost Comparison Estimate that NISC provided during the proposal stage of the decision making process. This is an estimate based on volume assumptions and credit card type assumptions and so cannot be taken as assurance, however NISC felt very strongly that this was a conservative estimate of the money they could save us. Currently, we are spending an average of$6,770 per month for Paymentus to process our credit card transactions: processing fees (—$6,000)and bill presentment fees($750). The NISC processing fees (per attached) are estimated to be $2,200 per month, which would be a savings of$3,800, annually$45,600. The monthly presentation will be saving $750 per month, annually $9,000. With these savings, alone we should recoup our buyout cost in two years. There will also be the efficiencies gained in the processing of customer payments through NISC that is hard to quantify in dollars but certainly worth mentioning as a gain to be recognized. The payments processed through credit cards will automatically and instantaneously be posted to the customer accounts, reducing the current 24 hour time delay to retrieve the file and post it, and the staff time to do it. Our customers will have more current information, as will we. 71