Historical Resolution Tracking Feature » Change to Credit Card Payments Processing Service Agreement
Important note: The explanatory text provided through this database (including the summary, implementation actions, identification of related resolutions, and additional information) is an interpretation or an explanation that has no official authority and does not represent the purpose behind the Board actions, nor does any explanations or interpretations modify or override the Resolutions themselves. Resolutions can only be modified through further act of the ICANN Board.
Change to Credit Card Payments Processing Service Agreement
Whereas, ICANN has established a need to enter into a new contract for the processing of credit card payments, supported by [REDACTED-FOR NEGOTIATION PURPOSES].
Whereas, the Board Finance Committee has reviewed the financial implication of contracting with [REDACTED-FOR NEGOTIATION PURPOSES].
Whereas, both the organization and the Board Finance Committee have recommended that the Board authorize the President and CEO, or his designee(s), to take all actions necessary to execute the new contract with [REDACTED-FOR NEGOTIATION PURPOSES] and to make all necessary disbursements pursuant to the contract.
Resolved (2020.12.17.05) the Board authorizes the President and CEO, or his designee(s), to take all necessary actions to execute a new contract with [REDACTED-FOR NEGOTIATION PURPOSES] and to make all necessary disbursements pursuant to the contract.
Resolved (2020.12.17.06), specific items within this resolution shall remain confidential for negotiation purposes pursuant to Article 3, section 3.5(b) of the ICANN Bylaws until the President and CEO determines that the confidential information may be released.
ICANN org has partnered with [REDACTED-FOR NEGOTIATION PURPOSES] for the processing of credit card payments since September 2007. Over the years, the volume of payments that ICANN receives by credit cards has increased and the tiered rate structure negotiated in 2007 is no longer favorable to ICANN. However, ICANN wishes to continue offering this convenient method of payment to its stakeholders through its longtime partner and reputable service provider, [REDACTED-FOR NEGOTIATION PURPOSES].
ICANN determined that under a new rate structure, [REDACTED-FOR NEGOTIATION PURPOSES] provided the most cost savings and best product value following a formal Request for Proposal (RFP) to identify potential service providers against 10 nominees and three participants.
[REDACTED-FOR NEGOTIATION PURPOSES] offers minimal transition efforts and a good history of transferring funds between the issuing bank and ICANN, without delays or disputes. [REDACTED-FOR NEGOTIATION PURPOSES] also meets ICANN's three primary objectives:
Secure services that meet global and local laws and regulations.
Reduce ICANN's cost associated with credit card merchant fees.
Migrate to a payment gateway service, increasing efficiency and accuracy for payments received by credit card.
ICANN has also negotiated favorable terms. The initial term of the new contract is three years with an automatic one-year renewal period. The contract can be canceled at any time with 60-days advance notice. The [REDACTED-FOR NEGOTIATION PURPOSES] fees are fixed for the contract term and will not increase.
After careful analysis, the Board agrees with the organization that the new contract is a more cost-effective solution for offering payments by credit cards at this time. The Board understands that the organization will continue to review other payment alternatives to further reduce the expense associated with these services and it will implement a process of regularly reviewing the fees billed by the service provider.
Executing the contract on favorable terms is in the public interest as it will lower ICANN's expenses without any impact to the services ICANN provides to its community and therefore is also consistent with ICANN's Mission.
There is a positive fiscal impact in that the new contract will result in a significant decrease in credit card processing fees. There is no anticipated impact to the security, stability, and resiliency of the domain name system.
This is an Organizational Administrative function that does not require public comment.