Edina to charge 3% fee for credit card utility payments
Starting September 1st, Edina residents who pay their utility bills with a credit or debit card will face a new 3% convenience fee. Mayor Jim Hland said the fee is necessary to offset the roughly $77,000 the city pays annually to credit card processors.
The Edina City Council announced the new convenience fee during Mayor Hland's remarks on August 20th. The fee will apply to all credit and debit card payments made through any method — online, by phone, in person, or through automatic payments — using the city's Invoice Cloud billing system.
The city processed more than 24,500 card payments for utility bills in 2024 alone, generating nearly $77,000 in processor fees that the city had to absorb. "The city does not make a profit from the convenience fee," Mayor Hland said. "The fee has been implemented only to offset the cost the city pays to card payment processors and helps maintain the city's overall budget."
Residents who want to avoid the fee have several options. The city will continue accepting payments by check, money order, and automatic bank transfers through Bank Pay or ACH (Automated Clearing House). These methods are free and can be set up through the city's website at adinaamn.gov/youutilitybilling.
This convenience fee is part of a broader cost-recovery strategy. Mayor Hland indicated the city is gradually implementing similar fees across all municipal departments to recover credit card processing costs. The move reflects a shift in how cities are handling the expenses associated with accepting electronic payments, passing some of those costs to residents who choose to pay by card rather than through traditional methods.
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Notable Quotes (4)
Beginning September 1st, when you pay your city utility bill with a credit card, a 3% convenience fee will apply.
The city does not make a profit from the convenience fee. The fee has been implemented only to offset the cost the city pays to card payment processors on average and helps maintain the city's overall city budget.
In 2024, utility billing processed more than 24,500 card payments, resulting in nearly $77,000 in fees paid to card processors.
The city is gradually implementing convenience fees across all departments to help recover the costs associated with accepting credit card payments.
Ordinances & Resolutions (2)
City's online billing software platform for utility payments.
Automatic payment systems that allow customers to avoid the 3% convenience fee by transferring funds directly from bank accounts.
Source document
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Other Topics from This Document
Alternative Payment Methods to Avoid Convenience Fees
Citywide Convenience Fee Implementation Strategy
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