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Tumwater staff weigh passing credit-card fees to customers after Tyler payments rollout
Summary
City staff told the Budget & Finance Committee that implementing the Tyler Technologies payment platform would increase merchant fees slightly and invited discussion of passing those fees to users; no final decision was made and staff will prepare option breakdowns and messaging for council review.
City of Tumwater staff briefed the Budget & Finance Committee on Jan. 24, 2025 about the likely cost and equity implications of switching to the Tyler Technologies payment platform and the possibility of passing credit-card fees on to customers.
Troy (city finance staff) told the committee the city currently absorbs credit-card merchant fees and that those costs amount to about $250,000 per year for utilities alone. He said the Tyler system would increase that cost by roughly $10,000 to $12,000 annually compared with current processing, and that the vendor’s business model combines card fees with an additional fee to Tyler for its integrated cashiering services.
Staff said the city now caps card payments for building permits at $1,500 to avoid large merchant fees on high-value…
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