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Council updates fee schedule: credit-card transaction charge changes from $3 flat fee to 3%
Summary
Council approved an update to the city's fees and charges schedule that changes the city's credit-card transaction charge from a $3 flat fee to 3% per transaction and restores omitted utility-billing entries.
Elgin City Council on Sept. 16 approved an ordinance updating the city's fee schedule, adopting a change to the credit-card transaction fee and restoring missing utility-billing entries.
City staff said the revised schedule replaces a $3-per-transaction flat fee with a 3% transaction fee and noted the city is working with payment processors and its software vendor to reduce merchant fees. Staff explained that, for bills under $100, the new 3% approach may lower consumer fees compared with a flat $3 charge; for larger transactions it will be higher.
The presentation also noted earlier omissions in the draft fee schedule; utility-billing fee lines were added back in without changing utility rates. Council approved the updated fee schedule on the consent agenda.
Why it matters: The fee change affects how residents pay for city services by credit card and may shift processing-cost burdens depending on payment amounts; staff said the change aligns fee recovery with transaction size and is intended to reflect merchant-fee realities.
