Title
Discussion of issues related to assessing a processing fee for credit card transactions.
Body
Summary:
Credit card merchant fees are increasing every year. Historically, the City has absorbed these fees. Due to the consistent rise, it is not prudent to continue to take on these increasing costs. Taking a phased approach, beginning October 1, 2025, Staff would like to start assessing a 2.5% processing fee for credit card transactions to assist in cost recovery. The areas the processing fees would first be implemented are: Central Collections (excluding tax payments), Public Works, Police Department, and EMS. Beginning October 1, 2026, a processing fee for tax would go into effect.
If City Council is agreeable to the fee, communication will go out in the upcoming water bills to notify the customers of this change and offer other payment options that do not assess a fee, namely ACH Bank Draft.
Fiscal/Budgetary Impact:
To be discussed.
Recommended action
Discussion only in Workshop.