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O'Fallon staff reviews credit‑card convenience fees after $388K in processing costs; council OKs staff to negotiate contracts
Summary
City staff explained legal requirements and tradeoffs of surcharges vs convenience fees, reported the city paid about $388,000 in card fees over the last 12 months, and council authorized staff to explore contracts and return with a recommended resolution.
City finance staff presented to the O'Fallon City Council on Dec. 18 about city credit‑card processing costs and legal options to recover those costs through surcharges or convenience fees.
Vicky (city finance staff) explained the difference between a surcharge (a fee applied for using a credit card in any channel) and a convenience fee (a fee for an alternate payment channel, such as paying online). She said Missouri law and federal/card‑network rules require disclosure prior to a…
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