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Commissioners OK resolution to pass electronic payment processing fees to customers
Summary
The commission approved Resolution 20-26-07 to allow the city to assess third-party processing fees on credit, debit and e-check transactions and pass those costs to customers; staff said the city is paying several thousand dollars monthly and recommended the change until a no-fee ACH option is available in new software.
The Goodland City Commission approved Resolution 20-26-07 allowing the city to assess and pass third-party electronic transaction fees to customers for credit card, debit card and electronic check payments.
City staff explained the change and said fees have grown from minimal amounts when electronic payments were first introduced to “several thousand dollars a month” in current costs. “We need to go ahead and pass that transaction cost on to ... the customer,” the city manager said, adding that the software vendor’s increases and heavier usage drove the recommendation.
Commissioners asked about exceptions and timing; staff and a commissioner noted that cash and check payments would remain fee-free and that a forthcoming software platform (expected in 2026) could offer auto-ACH options without fees. One commissioner asked whether the resolution specified the payment types covered; staff confirmed it covers credit cards, debit cards and e-checks. The commission voted to adopt the resolution; the implementation date discussed in the meeting was May 1.
Staff acknowledged a small e-check processing fee currently applies (approximately $1.35 per transaction) and recommended communicating options to the public so residents can avoid fees by choosing cash, check or no-fee ACH when available.
The resolution is intended to reduce the city’s ongoing processing expense by shifting that cost to users of electronic payment methods; staff said the city’s payment processing expenses had risen and were not broadly shared across all customers previously.
