Vacaville to pass up to 3% credit‑card processing fee to customers; ACH and in‑person options to remain

The Vacaville City Council voted Jan. 27 to allow staff to implement a credit‑card processing service fee that passes processing costs up to 3 percent to customers, while retaining no‑fee ACH/bank transfer and in‑person payment options.

Finance Director Ken Matsumia told the council that the city absorbs roughly $400,000 annually in credit‑card and electronic payment fees across multiple systems; utility billing via the Infosend portal accounts for about $232,000 of that total. He said the proposed policy would cap the pass‑through at 3 percent; any costs above 3 percent would continue to be absorbed by the city.

Matsumia said the city already uses a pass‑through approach for its community development permitting software (TrackIt), which has saved about $30,000–$50,000 per year. If the council approves the broader pass‑through, implementation will be phased across the city’s multiple payment processors and would begin no earlier than May 1, 2026. Staff will work with vendors to test systems and complete a staggered rollout.

Councilmembers asked about options for residents who cannot use or prefer not to use online methods. Matsumia and staff said the city plans outreach (how‑to videos, call‑center assistance) and will keep ACH/bank transfers as a no‑fee option for customers. For utility billing specifically, staff noted about 56 percent of online payers currently use credit cards and 44 percent use bank transfers.

Several councilmembers asked staff to consider safeguards for low‑income residents and those on fixed incomes; staff referenced existing utility programs (e.g., CARES) and said they will explore identification methods for fee reductions and retain in‑person payment options at City Hall. The council approved the resolution to implement the pass‑through and directed staff to pursue public education and a phased vendor implementation.