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New state rule forces Abita Springs to suspend debit-card convenience fees; TylerTech limitations complicate response
Summary
Following a recently effective state rule implementing federal limits on surcharges, town staff suspended card convenience fees because the town's TylerTech payment system cannot reliably distinguish debit from credit transactions; staff estimates credit/debit card transactions made up roughly half of payments and warned absorbing fees long-term is not feasible.
Town staff told the council Aug. 4 that a new state implementation of federal rules (cited in the meeting as La. R.S. 51:30.81 and 51:30.82) prevents municipal retailers from charging fees on debit-card payments. Because the town's payment vendor (TylerTech) cannot distinguish debit from credit transactions for online payments, officials have turned off convenience fees to avoid violating the law.
Staff said dollar-fee revenue has averaged about $2,500 over the past four months but that cards are a dominant payment method: "credit cards have accounted for 49.9% of the payments that we've received over the last 4 months," staff reported. The options discussed included temporarily absorbing fees, stopping card acceptance until a solution is found, or seeking legislative and regulatory clarification from state officials. Staff said it had reached out to parish officials and to legislative contacts, including a legislative liaison and Sen. Beth Mizell, to seek guidance.
Council members recommended suspending fees until clearer rules or vendor solutions are available. Staff warned the town cannot sustain absorbing fees long term but said a short suspension while seeking guidance may be prudent.
