Post Falls plans credit card use fee

POST FALLS - Post Falls plans to charge a fee to those who use credit cards to pay for city services to cover the cost of doing business.

The City Council on Tuesday night sided with staff's recommendation to charge a fee of 3.95 percent on credit card transactions online and in person.

A public hearing on the proposal is expected to be held on Jan. 4.

"These fees will not provide the city with extra money," said Eric Keck, city administrator. "We are merely trying to capture the cost of doing business by credit card. All taxpayers should not have to subsidize those that utilize the convenience of credit cards. Not everyone else who pays in cash or by check wants to foot the bill for someone using a credit card or getting reward or miles points.

"We are charged fees by the credit card companies as well as the provider of the electronic banking gateway for persons utilizing a credit or rewards card. These fees are becoming quite steep and we can no longer cover these costs."

Credit card charges for parks and recreation programs have totaled $4,700 so far in 2010, and for utilities $20,200.

Only the Utilities Division accepts online credit card payments, but the parks and recreation and police departments are about to do the same.

The city anticipates that, as it brings parks and recreation and police payment services online, there will be a large increase in credit card usage.

Such was the case in 2007 when the city brought utility payments online.

City officials say credit card usage for city services is on the rise due to convenience and rewards offered by card companies for usage.