Council approves Tyler Payments contract; credit-card surcharge of 2.95% to begin with 50-cent ACH option

The Moore City Council approved a contract with Tyler Payments on Oct. 6 to be the city's payment processor for utility and court payments. Staff told the council Tyler Payments can operate in real time (matching the current customer experience) and offered contract terms the city preferred over a previously considered vendor (Paymentus).

Under the arrangement approved by council, customers who pay by credit or debit card will see a surcharge of 2.95% (with a minimum fee of $1.50), while customers who pay via ACH/e-check will be charged a flat 50 cents. Staff said the city previously absorbed transaction fees and that moving to this model will shift most card fees to users while reducing the city's expense; staff estimated roughly $1 million in annual savings to the city.

Council asked how customers would be notified; staff said the city will publish language on billing statements and the website and perform advance outreach ahead of the implementation date. Staff also noted the vendor agreement includes no early-withdrawal penalty and is a one-year term in this negotiated form, compared with a five-year term proposed by an earlier vendor.

A motion to approve the Tyler Payments contract carried on a unanimous roll-call vote. Staff will publish customer-notification language and update the online payment portal.

"Once we have a contract in place and we know the implementation time, we'll notify all of the customers accordingly that this fee will begin as of that date," staff said during the council discussion.