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Council approves passing credit/debit card interchange fees to customers
Summary
Council approved a resolution to transfer actual credit and debit card interchange fees to customers at point of sale after staff reported city fees totaled about $200,000 through February; e-checks and bank bill-pay functions would not be charged a fee.
The Sierra Vista City Council on June 26 approved Resolution 2026-044 to change how the city handles merchant card fees by passing exact interchange fees to customers using credit or debit cards at the point of sale.
Finance staff (David Phillips) told council that interchange and merchant fees have risen substantially, reporting “through February for this fiscal year, the credit card fees are $200,000.” He said the change would have the customer pay the precise interchange fee the card processor charges, with specific exceptions: fees already baked into recreation/leisure program charges per city policy.
Council members asked clarifying questions about bank bill-pay and electronic checks; Phillips confirmed customers who use their bank’s electronic check or bill-pay will not be assessed a fee. Council also discussed a legal change permitting convenience-fee structures that make the practice common among merchants.
The council approved the resolution. Staff said the change is intended to reduce the city’s aggregate payment-processing expense rather than shift general rates for other residents.
