City passes cost of credit card use to residents

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Local News

December 31, 2019 - 9:48 AM

The cost of doing business in an increasingly paperless society may get a bit more expensive for Iolans.

Starting Friday, customers who use credit or debit cards will be assessed a 3% processing fee on their utility payments. 

Up until now, the surcharge — put in place by the credit card companies — had been absorbed by the city.

However, with upwards of 750 customers paying bills with their cards each month, such a proposition has become a costly one for city managers.

City Clerk Roxanne Hutton figured up the city’s costs for 2019 at about $32,000.

“And that number keeps going up,” she said, because an increasing number of customers have done away with writing paper checks.

“I don’t know what the demographics are, but fewer people are using cash,” Hutton said. “One of our employees doesn’t even have a checking account.” 

The change will take place over a three-hour stretch, from 8 to 11 a.m. Friday, and will coincide with the installation of a new Incode billing software program developed by Tyler Technologies. The new program will offer customers the ability to monitor their utility usage, including month-by-month comparisons to past bills.

“That’s what I’m most excited about,” Hutton said. “The customer has greater access to their utility history so they can prepare for future months.”

 

THERE remains a way to pay utility bills electronically without being assessed a surcharge.

Customers can enroll in automatic bill paying, by having funds drawn automatically from their bank accounts when their bills are due.

“People like the convenience of it,” Hutton said. “I know I do. It’s nice not to have to worry about it.”

For those who want to trigger the payment themselves, an online payment service is available through cityofiola.com, but they carry a $1.75 surcharge from checking accounts, or the aforementioned 3% processing fee for credit or debit cards. 

In another departure from past practices, the city no longer automatically withdraws payments through credit cards. “We had quite a few customers with their credit cards on file, mostly for points,” Hutton said. “Now, they have to switch to checking. It has to come from a checking account.”

Hutton anticipates few problems during the changeover, but suggests customers either pay their bills before 8 a.m. Friday, or after 11.

The surcharge and online bill paying also apply to those paying fines through Iola Municipal Court, Hutton noted.

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