Lewisville council votes to pass credit/debit processing costs to utility customers starting April 1

The Lewisville City Council voted 5–0 on March 2 to approve an ordinance adding convenience fees for credit and debit card payments for city water, sewer, stormwater and refuse collection services, with an effective date proposed as April 1, 2026.

Staff explained the city contracts with Paymentus and a merchant services provider to process electronic payments and that the growth in electronic payments made it financially unsustainable for the city to continue absorbing those charges. A council member framed the change as cost recovery, not a revenue source: "We are only collecting costs to pass through," the council member said during discussion. Another council member noted staff analysis in the backup showing the city has been covering about $600,000 a year in processing costs on behalf of utility users.

Under the adopted approach, customers may continue to use credit or debit cards and pay the associated convenience fee or choose alternatives—cash, check, automatic bank draft or ACH through the city's billing portal—that remain free to the customer. Staff outlined a communications plan to notify customers through bill messages, inserts and social media and said the outreach would begin before the April 1 effective date to allow residents time to switch to no‑fee options.

The ordinance and vote were procedural in form: council moved to approve, a second was received, and the motion passed 5–0. Council did not set specific fee levels in the public discussion; staff referred to the contract processors and the distinction between a convenience fee (which municipalities may pass through) and a merchant surcharge.

Next steps: staff will implement the communications plan and begin posting bill notices and social media messages to inform customers about the change and free alternatives.