Edina implements 3% credit card convenience fee
The City of Edina will begin charging a 3% convenience fee for credit card payments starting in July 2025, with the fire department serving as the first to implement the new policy.
The fire department, which includes the public health division, South Metro Public Safety Training Facility and building inspections division, will launch the fee first while other city departments follow as their payment systems are reconfigured. The department processed nearly 9,000 credit card transactions totaling nearly $5 million in 2023, resulting in more than $125,000 in processing fees.
City officials said the decision stems from the significant financial impact of credit card processing costs, which represented over 2.5% of the fire department's sales volume. According to the city, the increased use of credit and debit cards as primary payment methods prompted an evaluation of fiscal responsibility measures.
The implementation will be rolled out gradually across the organization, which operates five different point-of-sale systems and works with 10 different merchant processors. Each department must work through its own logistics before the fee can be applied citywide.
Customers paying with cash or check will not be charged the convenience fee. The city plans to install signage and update online payment systems to inform customers of the new fee, with staff instructed to mention the charge when assisting customers in person or over the phone.
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The City of Edina announced it will begin charging a 3% convenience fee for credit card payments starting in July 2025. The fire department will be the first to implement this fee, followed by other departments as their systems are reconfigured. This decision was made due to significant credit card processing costs, with the fire department alone paying over $125,000 in fees in 2023 on nearly $5 million in transactions.
Source document
[Music] Starting in July, the city of Edina will begin charging a 3% convenience fee for payments made with a credit card. The first to roll out the new fee will be the fire department, which includes the public health division, South Metro Public Safety Training Facility, and building inspections division. Other departments will follow as their systems and processes are reconfigured. The fire department is one of the departments that has felt the significant impact of card processing fees. In 2023, the department had nearly 9,000 card transactions totaling nearly $5 million. The total amount of credit card fees paid by the department was more than $125,000 or over 2.5% of sales. Today's day and age, credit cards and debit cards are almost a primary form of payment. And so with that increased activity, it was really an evaluation of how can we be fiscally responsible for it. We understand the convenience factor of that. So, we want to make sure it was a convenience fee that's appropriate and fair, uh, and still represents an ability to do good service quickly and efficiently. After the fire department launches card processing fees in July, more departments will follow suit with five different point of sale systems and 10 different merchant processors across the organization. Each department has its own set of logistics to work through before the fee is in place citywide. There will be no convenience fees for customers paying with cash or check. The convenience fee will be outlined on all online payment systems and in person with signs. City staff will also mention the fee when helping customers in person or over the
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