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City of San Diego·California

Citywide Merchant Card Processing

Closes 6/29/2026$5M – $15MRequest for Proposal
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Description

The City of San Diego is soliciting proposals from qualified firms to provide a city‑wide merchant card processing solution. The contract will replace the existing Fiserv processor and will cover all in‑person, kiosk, and online credit/debit card transactions across every City department and facility. The selected vendor must deliver secure PCI‑DSS compliant processing, EMV‑capable terminals, T+1 settlement, detailed BAI2‑format reporting for SAP reconciliation, and support for digital wallets and a 2.99 % in‑person service‑fee model. The engagement is a five‑year term with an anticipated SAP migration during the contract period. • Provide end‑to‑end card payment processing (authorization, settlement, charge‑back handling) for all City locations. • Supply or lease EMV‑capable hardware, ensure 48‑hour terminal replacement, and integrate with the City’s existing online CPP/Alacriti gateway. • Deliver secure, tokenized, PCI‑DSS compliant services with reporting portals, daily BAI2 statements, and support for SAP ECC 6.0 and future S/4 HANA reconciliation. • Price services on an interchange‑plus basis with a $0.03 per‑transaction fixed discount and a 2.99 % in‑person service‑fee.

Attached files

The solicitation documents live at the source — open the bid source above to download them.

Contact

Damian Singleton(Senior Procurement Contracting Officer)

[email protected]

(619) 235-5743

Key dates

Opened
5/4/2026
Questions due
5/22/2026
Closes
6/29/2026
Duration
5 years

Last updated

Details

Type
Request for Proposal
Industry
Financial Technology
NAICS
522320
Solicitation №
10090470-26-D

Budget estimate

$5,000,000 – $15,000,000

The solicitation does not disclose a contract ceiling. Based on FY 2025 transaction volume (~$133 M in sales) and typical merchant‑processor margins (interchange‑plus plus a $0.03 per‑transaction discount), the City’s annual spend on processing could be in the low‑single‑digit‑million range. Assuming a 5‑year contract, the vendor’s total revenue might fall between $5 M and $15 M over the contract term, depending on volume growth, interchange rate negotiations, and ancillary service fees.

AI estimate from the solicitation

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