From Samantha Denbow
Communications & Cultural Arts Director
The City of Bay City will implement a credit card surcharge for payments made to the city using credit cards, effective Jan. 6, 2025.
This decision comes as a result of increasing transaction processing costs, which the city can no longer absorb while maintaining essential services and programs.
Under the new policy approved during the Regular City Council meeting on Nov. 12, a surcharge will be applied to credit card payments made for city services, including but not limited to utility bills, permit fees, and other municipal transactions.
The fee passes through part of the cost that the City is charged for the customer using certain payment types.
In recent years, credit card transaction fees charged by financial institutions have steadily increased, placing a growing strain on the city’s budget.
Previously, the city absorbed these costs to minimize the financial burden on residents.
However, with continuing cost increases and the need to prioritize public funds for critical infrastructure, public safety, and community services, the city must take this measure to ensure fiscal responsibility.
“Many other cities have either already implemented this or are looking at it” says Jennifer Leverett, Finance Manager.
“Last year alone, we absorbed approximately $220,000 in credit card fees in various city departments, when five years ago it was approximately $57,000.”
Surcharge Fees:
Online Payments: $4.00 per transaction
In-Person (Point of Sale): 3.5% of the transaction amount
Phone, Text, or E-Check Payments: $2.00 per transaction
“Online payments currently have a $1.50 processing fee and a $2.00 Municipal Online Payments Fee,” confirmed Scotty Jones, City Manager.
“This change will increase the processing fee to $2.00, a $0.50 increase. Our processors do not differentiate between debit and credit.”
The City remains committed to offering flexible payment options for residents and businesses.
To avoid the surcharge, we encourage you to utilize the following fee-free payment methods:
cash
check
money order
in-house bank draft, or
payments at H-E-B.
“In-house bank drafts are set up in the Utility Billing department and differ from a bank draft that is set up through your bank,” says Jones.
“Our staff are ready and willing to help explain the fees and payment options available.”
Mayor Robert Nelson emphasized the city’s commitment to transparency:
“We understand that every dollar counts for our residents and businesses. This decision was not made lightly, and we want everyone to clearly see why this fee is necessary.
“We encourage everyone to explore all available payment options and utilize the one that works best for them.”
The surcharge policy complies with applicable state and federal regulations regarding credit card payment processing.
For additional questions or concerns, please contact the City Manager’s Office at (979) 245-2137.