HomeMy Public PortalAboutAB 20-071 Non-Utility Credit Card Service FeeMcCALL CITY COUNCIL 216 East Park Street
AGENDA BILL McCall, Idaho 83638
Number AB 20-071
Meeting Date March 12, 2020
AGENDA ITEM INFORMATION
SUBJECT:
Non-utility Electronic Payment Service Fee
Department Approvals Initials
Originator
or
Supporter
Mayor / Council
City Manager
Clerk
Treasurer Originator
Community Development
Police Department
COST IMPACT: TBD Parks and Recreation
FUNDING
SOURCE:
Service Fees Airport
Library
TIMELINE: 4 – 6 weeks pending return of VISA approval
of service fee
Information Systems
Grant Coordinator
SUMMARY STATEMENT:
Following the December 19, 2019 an electronic payment presentation and discussion the Council directed
staff to more forward and bring back a fee schedule for review.
Staff consulted Jared Swinford, Xpress Bill Pay (XBP), to assist in determining a service fee amount to
attempt cover the per transaction fees resulting from electronic payments. In his experience, cities that have
large swings in payment amounts, such as the City of McCall, will set a combo fee, a percentage plus an
amount. A fee of 3.25% plus $1.00 is a common service fee that he sees. The percentage calculation of
3.25% will cover higher payment amount per transaction fees and the additional $1.00 will cover the lower
payment amount per transaction fees. Therefore, staff recommends setting a service fee amount of 3.25%
plus $1.00. Staff will monitor electronic payment activity and actual transaction fees to determine whether
the established service adequately covers electronic payment processing fees. The goal is to, as close as
possible, breakeven.
Staff also recommends adding the option of paying by eCheck. Accepting eChecks will provide a low-cost
electronic payment alternative to paying by credit card. Online Banking Consolidation is the ability to
receive an electronic file instead of checks for online bill pays. Importing a file instead of manually
processing 350 to 400 online banking checks will save staff time.
Attachment:
1. Non-Utility Payment and Additional Services Rate Table
2. Bank Bill Pay Provide Applications to allow electronic payments via XBP instead of checks
RECOMMENDED ACTION:
1. Direct staff to bring back a fee resolution and public hearing to set fees
2. Authorize the treasurer to sign the necessary banking agreements
RECORD OF COUNCIL ACTION
MEETING DATE ACTION
12/19/2019 Directed staff to bring back fee recommendations for Council consideration