Council asks staff to return with recommendation on credit card processing and portal fees after finance presentation
September 15, 2025 | Sachse, Dallas County, Texas
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City finance staff presented an analysis Sept. 15 of credit-card processing and online payment-portal fees the city incurs across departments and asked the council whether it wants staff to pursue a policy change.
Finance staff showed that utility billing accounts for the largest transaction volume and that about 78% of average monthly utility transactions are paid by card. Staff reported processing fees vary by card type and processing method and estimated average merchant fees of about 1.5%–3.5% per transaction; the city also pays per-transaction online portal charges (typically $1–$2.50). Staff’s summary showed the city’s combined annual estimate for card processing and portal fees across departments at about $344,000; utility billing accounted for roughly $194,208 in processing fees and an estimated $100,000 in online portal fees.
Staff noted municipal-court and development-services practices vary: development services charges a 3% fee for card transactions above $1,000 and municipal court passes the portal fee through to customers. Historically, utility billing charged a $1.25 online fee prior to COVID and suspended it during the pandemic; staff said that suspension, combined with growth in card use, means the city now bears a larger share of processing costs.
Council members discussed options including reinstating a flat per-transaction online fee, moving to a percentage-based convenience charge, incentivizing ACH (electronic check) enrollment, restricting certain card types (for example, American Express has higher fees), or continuing to absorb the cost as part of the utility fund’s cost of doing business. Several council members asked staff to return with a concrete recommendation and modeled impacts (flat fee vs. percentage; projected behavior change; staffing impacts from increased in-person payments).
No policy change was adopted at the meeting. Staff said they will return with an analysis and specific recommendations, including the effect on customer behavior and on city staffing and bank-deposit workload.
Finance staff showed that utility billing accounts for the largest transaction volume and that about 78% of average monthly utility transactions are paid by card. Staff reported processing fees vary by card type and processing method and estimated average merchant fees of about 1.5%–3.5% per transaction; the city also pays per-transaction online portal charges (typically $1–$2.50). Staff’s summary showed the city’s combined annual estimate for card processing and portal fees across departments at about $344,000; utility billing accounted for roughly $194,208 in processing fees and an estimated $100,000 in online portal fees.
Staff noted municipal-court and development-services practices vary: development services charges a 3% fee for card transactions above $1,000 and municipal court passes the portal fee through to customers. Historically, utility billing charged a $1.25 online fee prior to COVID and suspended it during the pandemic; staff said that suspension, combined with growth in card use, means the city now bears a larger share of processing costs.
Council members discussed options including reinstating a flat per-transaction online fee, moving to a percentage-based convenience charge, incentivizing ACH (electronic check) enrollment, restricting certain card types (for example, American Express has higher fees), or continuing to absorb the cost as part of the utility fund’s cost of doing business. Several council members asked staff to return with a concrete recommendation and modeled impacts (flat fee vs. percentage; projected behavior change; staffing impacts from increased in-person payments).
No policy change was adopted at the meeting. Staff said they will return with an analysis and specific recommendations, including the effect on customer behavior and on city staffing and bank-deposit workload.
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