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Atchison to pass card fees to customers beginning Oct. 1 after merchant fees spike
Summary
City staff told commissioners that credit‑card processing fees climbed sharply and the city has spent $215,000 in fees during the first six months of the year; starting Oct. 1 the city will charge customers the card processing fee or encourage free alternatives such as ACH autopay, checks or cash.
City staff informed the Atchison City Commission that credit‑card processing fees charged to the city by card networks have risen substantially. Staff reported the city has spent $215,000 on card fees in the first six months of the year — more than any prior full year — and said the average fee per transaction is currently about 11%.
Given that increase, staff told commissioners the city will begin charging customers the processing fee for payments made with Visa, Mastercard, Discover and American Express, starting Oct. 1. The fee will be passed through to the payer; staff said the city will determine whether to calculate the fee per card brand or use a weighted average but will notify customers in advance.
Staff emphasized alternatives that avoid fees: automatic bank drafts (ACH), which require a routing and account number and do not incur card fees; payment by check or cash; and city drop boxes. Staff said ACH enrollment is a one‑page process and will be promoted in upcoming water bills.
Commissioners discussed whether to stop accepting cards entirely or to require payers to absorb fees; staff said the city could stop accepting cards but prefers to keep the option with a fee since many residents prefer card payments. City staff also warned fees could rise further and may necessitate budget adjustments; they said there was a non‑zero chance the city might need to file an amended budget depending on how fees evolve through the year.
Why it matters: Charging processing fees changes the cost of using credit cards for utility bills, court fees and other municipal payments and incentivizes use of fee‑free alternatives such as ACH.
Figures and implementation timing below come from the staff report and commission discussion.
