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California Board of Accountancy to pass most renewal credit‑card fees to users, keeps fees for exam and initial licensure
Summary
The board voted to adopt staff’s option to pay transaction fees for CPA exam applicants and initial licensure while passing renewal convenience fees for CPAs and firms to users, saving an estimated $300,000 annually; implementation is targeted for July 1, 2026.
The California Board of Accountancy voted March 13 to shift most online credit‑card processing costs to licensees and firms while continuing to cover fees for exam applicants and initial licensure.
Deian Pierce, chief of the administration division, told the board staff had prepared two options to address rising transaction costs and recommended option two: “This approach maintains reduced financial barriers to entry into the profession while saving approximately $300,000 annually,” Pierce said during her presentation.
Under the approved plan, the CBA will continue to pay the roughly 1.9% processing fee for CPA exam applicants and for initial CPA licensure. Renewal transactions for individual CPAs and CPA firms will instead be charged a convenience fee to the payer; Pierce said the user‑facing convenience fee will typically be about 2.3% for renewals once implemented.
Board members raised practical questions about alternatives such as bank account transfers, and whether other vendors or state contracts could reduce fees. Pierce and other staff explained that the CBA must use mandatory statewide contracts negotiated by the Department of General Services, which limits vendor alternatives in the short term.
Supporters argued passing renewal fees to users is fiscally prudent as the board prepares for business modernization and expanded enforcement work. Opponents said the fee adds cost to licensees already facing recent license fee increases and expressed concern about perception and access for some users. Member Rael moved to adopt option two; the motion passed on a roll call vote with nine members in favor and four opposed.
Miss Reed read the roll call: yes votes included Zalinski, Thompson, Rosenbomb, Rafel, Lynn, Lada, Guzman, Corgan and Bachelor; no votes were recorded from Member Two, Hines, Dong and Aguilera. Pierce said staff will update communications and coordinate with the credit‑card processor to target a July 1, 2026 implementation.
Board materials said the CBA has paid more than $700,000 in transaction fees since fiscal year 2023 and expects fees to rise further with new payment uses and an upcoming fee increase. Staff said credit‑card usage is high (exam payments ~96% card use, renewal payments low‑90% card use) and that many users would likely continue to use card payments even if charged a convenience fee.
