Committee advances, then rescinds, recommendation on convenience fee for city credit- and debit-card payments

The San Francisco Board of Supervisors Budget and Finance Committee on June 23 heard a presentation from the Treasurer and Tax Collector's Office proposing an ordinance to impose a convenience fee on credit- and debit-card transactions processed by the city.

Amanda Freed of the Treasurer and Tax Collector's Office told supervisors the city's contract with its internet payment vendor is ending and bringing payment collection in-house would reduce financial risk. "This legislation creates a convenience fee to cover our TTX's costs of bringing the collection in house," Freed said, adding that rates would be capped and adjusted annually in consultation with affected departments.

Freed said many city transactions use credit cards, including building inspection fees, property taxes and business taxes, and that the office expects a net savings for most users who make payments on the city's websites. She also explained that interchange fee rates vary by card type and that the ordinance sets caps so rates can be adjusted without returning for legislative change; the initial fee, she said, would be set below that cap.

There were no public commenters on the item. Supervisor E moved, with Supervisor Tang seconding, to send the ordinance to the full Board with a positive recommendation; the motion passed without objection. Later in the same session, however, the committee moved to rescind that earlier vote on Item 4 and to forward the ordinance to the Board's July 12 agenda. The committee did not adopt a final rate in committee; the ordinance language described rate caps and an annual calculation process to set fees.