Updated Notice Regarding Upcoming Credit/Debit Card Processing Fee Changes
MMU’s upcoming change to apply a 1.35% processing fee to all credit and debit card transactions has prompted questions and concerns from the community. We have heard comments suggesting that it is illegal to charge processing fees on debit cards. Prior to implementing this change, we want to clarify how MMU passes through fees associated with card payments.
Both state and federal regulations allow governmental entities to recover fees associated with card payments, whether made by credit or debit card. MMU has reviewed the processing fees we were charged over the past year, which averaged 1.35% – the rate we will begin applying next week. We will continue to monitor these fees to ensure the amount charged reflects actual costs.
Missouri law, including Missouri Revised Statutes § 139.055 (enacted in 1999), permits government entities to charge a fee equal to the cost of processing card payments. In addition, the Durbin Amendment, passed by Congress in 2010, allows certain government entities to pass through processing costs for debit and prepaid card transactions.
MMU is not just a service provider – we are part of this community. We strive each day to deliver reliable utilities through innovation and forward planning, while supporting economic growth and enhancing quality of life in our community.
We do not intend on this additional fee to create a burden for our customers. As always, we continue to accept payments by cash, check, money order, and automatic bank draft, in addition to debit and credit cards. As previously noted, annual card processing fees have grown to more than $60,000, and we believe these funds are better retained within our community rather than paid to third-party processors.
Upcoming Credit/Debit Card Processing Fee Changes
MMU is pleased to offer credit/debit cards as a payment option for utility services. Utility bills paid via card have grown throughout the years, currently about 30% of all billings are paid via cards. With the rise in card payments has come an increased expense of approximately $62,000 in card payment fees each year.
To be more consistent with other city departments and to alleviate this expense, MMU will begin charging processing fees of 1.35% on all credit/debit card transactions effective Thursday, April 30 at 5:00 pm.
If you would like to avoid this change in processing fees, please note that MMU also offers payments via cash, check, and automatic bank draft. If you are interested in automated payments, please stop by our office or click the link below to sign up for bank draft.