Over the past several years, the use of credit/debit cards to pay for City services and other amounts owed to the City has expanded exponentially. With this increase, the amount of fees that the City has incurred related to the acceptance of credit/debit cards has also increased. In fact, the City incurred more than $30,000.00 in fees during Fiscal year 2008/2009.
In the yearly review of budget expenditures, the City Treasurer questioned this budget line and asked staff to research whether other options were available that would allow the City to better allocate these funds to budgetary needs that better serve the City's mission.
To that end, on June 9, 2009, the City Council approved Resolution 5097 which allows the City to use a third-party
vendor, at no cost to the City, to process credit/debit card payments. Resolution 5097 also allows this third-party vendor to collect a 2.4% fee which is added to all credit/debit card transactions.
While many Cities and counties do not accept credit cards at all, the Treasurer felt it appropriate to continue accepting credit/debit cards at the City of Gardena. However, in order to recover the costs of accepting credit/debit cards, a convenience fee of 2.4% will be added to all credit/debit card payments. This convenience fee approximates the fee that Gardena is charged by our merchant provider. In addition, due to credit card regulations related to convenience fees, the City will only accept Discover & Mastercard.
The City of Gardena is not involved in any way in the assessment or collection of this convenience fee. This fee is assessed and collected by our service provider, Government Payment Processing. “Same day” transactions may be voided, but no future refunds of this convenience fee will be allowed if the City of Gardena refunds your money.
No convenience fees will be charged for payments made in cash, check or money order.
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