Walla Walla council adopts 2.45% convenience fee for card payments, effective Jan. 1

Walla Walla City Council · December 18, 2024

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Summary

After months of finance committee review and vendor negotiation, the Walla Walla City Council voted unanimously Dec. 18 to allow a 2.45% convenience fee on credit and debit card payments for city services, while preserving a no-fee e-check option; staff will collect data in 2025 and revisit the rate if needed.

The Walla Walla City Council on Dec. 18 approved an ordinance allowing the city to charge a convenience fee of 2.45% on credit and debit card payments for municipal services, effective Jan. 1, 2025.

Finance staff described two cost components that drive the change: nonnegotiable interchange fees set by card networks and negotiable gateway-processing charges. Miss Moyer, a finance staff member, said staff negotiated lower gateway rates with Tyler Payments and recommended a starting fee to recover processing costs. "We developed a plan to bring the topic to a work session," Moyer told the council, noting the city will be able to refund duplicate card payments more quickly under the new processor.

Council members debated whether to start at the 2% staff recommendation or match Walla Walla County's 2.45% level. Council Member Haskell and others pushed for matching the county to minimize future adjustments; Robinson said the addition of a free e‑check option addressed equity concerns she had raised earlier. Robinson said, "When staff went out of their way to explain ... the eCheck thing to me, I felt like you met me halfway." Finance staff said e‑checks and other no-fee options will remain available.

Staff estimated revenue based on 2024 online utility payments and committed to collecting detailed monthly data in 2025 before recommending any rate changes. City staff told council they would return in November 2025 with an evaluation of actual costs and usage trends.

The council approved the motion to set the fee at 2.45% by unanimous voice vote.

What happens next: The ordinance goes into effect Jan. 1, 2025. Staff will monitor transaction data through 2025 and report back to council with recommendations on whether the fee should be adjusted.