Council pauses change on credit-card fees; staff to return with implementation plan

TAMPA — Council members pressed City finance staff for a timetable on a previously directed change to stop subsidizing third‑party credit‑card processing fees for city transactions, and asked for a written plan to implement the council’s prior direction without disrupting vendor services.

Background and public concern: Residents raised questions about why the city continues to absorb card-processing fees, which critics say effectively subsidize credit-card users at the expense of cash‑paying residents. Stephanie Pointer noted prior council direction to stop the practice and asked why the fee policy had not changed.

Council discussion and staff response: Mike Perry, revenue and finance, told council he had recently assumed responsibility for accounting staff and asked for time to develop a concrete plan. He said staff will meet with the city’s merchant‑services vendor (Bank of America) and consider outside consultants to choose among implementation paths. Perry asked council to “please give me some time to go ahead and develop a plan and implement that plan,” and said follow-up contracts will return to council for approval.

Interim action and next steps: Council voted to move the consent item so that the city could keep paying routine vendor bills while staff finalizes the implementation approach. Councilwoman Hertek asked for a written report and for staff to return by the Aug. 28 meeting with details on the options, estimated costs and how the administration plans to ensure the policy matches council direction.

Why it matters: Council previously directed a change to stop using general revenues to subsidize card-processing fees. The issue affects multiple pay systems (utilities, parking and point‑of‑sale) and could have a multi‑million‑dollar impact on city budgets or ratepayers depending on the policy design. Staff told council the implementation is operationally complex and will require contracts or procurement steps.