Agenda Item Wording:
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Confirmation of the contract with Stripe for Microtransit Credit Card Payment Processing Services - Confirm the contract with Stripe to act as a third-party credit card processing services provider for the Visalia Connect microtransit pilot program for one (1) year with the option of up to four (4) one-year renewals, with processing fees not to exceed $30,000 annually.
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Deadline for Action: 6/2/2025
Submitting Department: Administration - Transit Division
Contact Name and Phone Number:
Angelina DeRossett, Transit Manager, Angelina.DeRossett@Visalia.City <mailto:Angelina.DeRossett@Visalia.City> (559)713-4591, John Lollis, Assistant City Manager, John.Lollis@Visalia.City <mailto:John.Lollis@Visalia.City> (559)713-4323.
Department Recommendation:
Staff recommends that the City Council confirm the contract with Stripe for one (1) year with the option of four (4) one-year renewals and a maximum of $30,000 annually in processing fees, to act as a third-party credit card processing services provider for the Visalia Connect microtransit pilot program.
Summary:
At its meeting on April 21, 2025, the City Council provided conditional approval of Stripe as a third-party credit card processing services provider for Visalia Connect, Visalia Transit’s new microtransit service, pending a full review process from the City’s Finance Department and Information Technology (IT) Division staff. Transit Division staff have subsequently received approval to proceed with Stripe, with IT staff having met with Stripe and having all questions answered on use of this credit card processing technology for the microtransit service. This item is submitted to the Council to confirm the final contract with Stripe for credit card processing for Visalia Connect service. The microtransit launch date is June 11, 2025.
Background Discussion:
Protection of customer credit card data is a primary concern for the City when contracting for payment and processing services. Credit card payment safety is measured according to standards set by the Payment Card Industry (PCI) Security Standards Council. Stripe credit card payment processing services have received certification at the highest rating (Level 1) for PCI Compliance. Stripe is a popular third-party payment platform used by many types of businesses of various sizes. There are a wide range of online tools and ways to accept payments on the Stripe payment platform. Stripe will be used to process the credit card payments that passengers submit when booking a ride on the Via booking software platform for the microtransit program. Amazon, Google, Instacart, Lyft, and Wayfair are just some of the major companies that utilize Stripe as its credit card payment processing platform.
Transit staff met with the City’s Finance Director and IT Manager to discuss Stripe and the alternative option supported by the Via booking software platform (Brain Tree), and were advised to proceed with Stripe. It should also be noted that both the Tulare County Regional Transit Agency (TCRTA) and the City of Porterville both utilize Stripe as their third-party credit card payment processor through Via for microtransit services.
Fiscal Impact:
The microtransit pilot program is funded by State Senate Bill 125 transit grant funds provided by the Tulare County Association of Governments (TCAG).
Prior Council Action:
24-0016 12-04-2023 Authorization to partner with County on microtransit
23-0454 12-15-2023 Approval of Project Budget List (microtransit included)
24-0258 06-24-2024 Rescinding of County partnership for microtransit
24-0251 09-16-2024 Award for microtransit software and vehicle purchase
24-0497 11-22-2024 Authorization to receive SB125 funding for microtransit
24-0562 03-03-2025 Transit update presentation (microtransit included)
24-0432 03-03-2025 Rates and Fees for microtransit service
25-0074 03-17-2025 Recommendation from staff on branding microtransit service
25-0143 04-21-2025 Conditional authorization for Stripe Credit Card Services
Other: N/A
Alternatives:
The City Council could act to pause the planned microtransit launch and explore the alternative credit card processing provider (Brain Tree).
Recommended Motion (and Alternative Motions if expected):
recommendation
Staff recommends that the City Council confirm the contract with Stripe for one (1) year with the option of four (4) one-year renewals and a maximum of $30,000 annually in processing fees, to act as a third-party credit card payment processing services provider for the Visalia Connect microtransit pilot program.
Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments:
City Council Staff Report - April 21, 2025 (25-0143)
Stripe Services Agreement.