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City staff explains convenience fees for card transactions; golf shop currently charging 3.3%
Summary
A staff presentation clarified that a government-permitted "convenience fee" can be applied to card payments (including certain debit cards) and that the golf course currently charges 3.3% to cover processor costs; commissioners asked about legality and pending state-level challenges.
At the Feb. 11 meeting the commission heard a staff presentation explaining transaction convenience fees applied to card payments at city facilities.
Staff member Tina said the card networks (Visa, MasterCard, Discover, American Express) provide a government program that allows public agencies to charge a convenience or service fee to recover processing costs; she contrasted that program with the prohibited private-sector surcharge regime. Tina said the golf course recovers an average processing cost and currently charges a 3.3% convenience fee at the pro shop (based on a year of prior transactions and processor costs).
Commissioners asked whether debit cards can be charged and whether litigation or state legislation affects the practice; Tina said the government program accommodates debit-card transactions and noted some municipalities have faced legal and financial pushback from processors and banks. Commissioners asked staff to monitor pending legislation and to be transparent to customers about the fees.
What's next: Staff will continue to implement the convenience-fee program as authorized and to monitor legal and contractual developments and will provide clarifying material for the commission and public as needed.
