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Committee approves legacy payment contract extension while seeking RFP to reduce convenience fees

2108942 ยท January 13, 2025
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Summary

The committee approved an extension of a legacy electronic-payment contract and discussed rising convenience and transaction fees for residents; staff said an RFP will seek alternative platforms and a vendor demonstration will precede any further changes.

Miami-Dade County27s Infrastructure Innovation and Technology Committee voted to extend a legacy contract for electronic payment processing while directing staff to pursue a request-for-proposals that could provide lower-fee payment options for residents.

Committee members raised concerns about charges levied on residents when using debit and credit cards. Staff and county attorneys explained that a state-level surcharge-prevention statute had been found unconstitutional, allowing vendors to apply convenience and service fees; the vendors currently set the transaction fee that residents pay at the point of sale.

A county staff member explained the county has sought to negotiate lower rates and that an RFP will be issued to evaluate platforms including PayPal, Venmo, Zelle and other providers. Staff said they will ask potential vendors to propose options that reduce or eliminate convenience fees; for permitting and connection fees the county previously tested PayPal to lower costs and will evaluate multiple platforms during the procurement process.

Several commissioners asked why fees that had remained at 3.95 (percent) since 2003 were being increased and sought documentation supporting the change. Staff said the vendor implemented the new fee in December and that the extension before the committee would continue the existing contract while allowing time for the RFP process.

After discussion, a motion to approve the contract extension and proceed with the RFP passed on a voice vote. Staff said they will continue to work with county attorneys and procurement to negotiate vendor terms and explore alternate payment methods; staff also said the county does not pay the fees charged to residents and that those fees are set by the vendor platform.