Agenda Item: 15(a)
Prepared By: Sharon Dangles, Interim Finance Director
Business: Resolution
Department: Finance
Subject:
Title
Resolution - Implementation of a Convenience Fee on Credit/Debit Card and Electronic Payment Transactions - Sharon Dangles, Interim Finance Director
Body
BACKGROUND:
Resolution 20-20 was approved on July, 20, 2020 to implement a convenience fee on credit/debit card payments as well as electronic payment transactions to cover the costs incurred by the City. This agreement was not implemented by the prior Finance Director. It may have been due to software capabilities at the time and now we would like to proceed forward.
The City pays approximately $105,000 annually in credit card service fees. Most of these fees pertain to building permits and utility charges. There are municipalities and counties in Florida that charge service fees such as Collier County, Melbourne, Clermont, New Smyrna Beach, Lake Clarke Shores, Miramar, and Walton County.
Customers who do not wish to pay with a credit/debit card will have the opportunity to opt out before the completion of online transactions. There will be a message indicating they are agreeing to a convenience fee that will be collected by a third party to cover transaction processing fees. The customers have the option to choose to cancel the online transaction and pay their invoice by paying in person with cash or check or by mailing in a check payment.
City Staff anticipates a "go-live" for implementation of the convenience fee on October 1, 2025. This date is contingent on completing the Tyler Payments testing in September.
After Council approval of the convenience fee program, the Addendum will be executed and we will begin implementation to move from an absorbed fee model to a pass-through fee model.
The cost of accepting credit card payments has grown each year as more transactions are paid by credit card and as the merchant fees charged by banks increase. To ...
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