Chapter 7.13
Credit Card – Alternative Payment Methods

Sections:

7.13.010 Definitions.

7.13.020 Policies.

7.13.030 Options.

7.13.040 Administration.

7.13.010 Definitions.

A.  “Alternative payment method” means payment by credit cards, charge cards, debit cards, federal wire, automatic clearinghouse (ACH) system transactions, automatic withdrawal, online payment or any other commercially reasonable means of payment consistent with this chapter, as distinguished from traditional payment methods such as cash, check or money order.

B.  “Convenience fee” is a charge to a credit card, debit card or similar account holder for the convenience of making payment through an interactive voice response system or through the internet, or other similar means in accepting credit or debit card payments, or any other fee to the customer for the convenience of handling an alternative payment method.

C.  “Transaction cost” is a charge for the use of an alterative payment method by the card issuer or financial institution. It may be a flat per-transaction fee or a discount absorbed by the party receiving payment.

[Ord. passed: 4/26/2004]

7.13.020 Policies.

The city council hereby adopts the following policies:

A.  Practices to increase efficiency and lower overall costs in administering payments for municipal services or other obligations should be encouraged.

B.  Practices should be encouraged to make it easier for our citizens, who are also our customers, to pay municipal obligations.

C.  Besides traditional means of payment such as check, cash or money order, alternative payment methods should be implemented, consistent with this chapter.

D.  Use of alternative payment methods consistent with this chapter is a sound business practice and fiscally responsible where it enhances the City’s ability to receive prompt payment and transfers a portion of debt collection burdens, which would otherwise be an additional expense to the City, to third parties.

E.  The policies in this section should be administered subject to applicable legal requirements and principles of fiscal responsibility and sound business management practice. Notwithstanding any other provision, no part of this chapter creates any duty or contractual right as to any specific person or entity.

[Ord. passed: 4/26/2004]

7.13.030 Options.

A.  A municipal department may elect to absorb all or portions of transaction costs and/or convenience fees, consistent with this chapter, pursuant to a written policy approved by the department head of the affected department. The policy may limit or condition this practice. For example, a department may decline to accept such costs or fees for some classes of obligations or for larger transactions because of the amount or for other reasons, in the exercise of sound discretion. Departmental policies must also be approved by the chief financial officer.

B.  Municipal handling or processing administrative costs may also be charged and may be included as all or part of a convenience fee as condition of accepting an alternative payment method. Such a decision shall be stated in the written policy referenced in subsection (A) of this section.

[Ord. passed: 4/26/2004]

7.13.040 Administration.

A.  The chief financial officer administers this chapter overall, and may make any needed general arrangements for the City to accept alternative payment methods, considering accounts of similar volume, under such conditions and in the exercise of sound business judgment as the chief financial officer deems proper, reserving authority to enter into separate agreements with credit card companies. The deputy mayor executes any necessary contracts to accomplish these actions on behalf of the City with one or more banks or other financial institutions or third parties. Each department or division head is further responsible for specific administrative details and policies affecting individual departments or divisions. All departments shall coordinate their actions with any policies of the chief financial officer.

B.  When any department determines to absorb all or any portion of any transaction cost or convenience fee as to funds collected by or on behalf of such department, the chief financial officer records such charges in the respective department’s expenditure account.

C.  This chapter does not supersede any contractual or legal requirements otherwise applicable to specific obligations owed to the City, or the authority of other local, state or federal agencies, including the court system, in the administration of their respective functions.

[Ord. passed: 4/26/2004]