Adoption of a Resolution Amending Exhibit C of Resolution No. 2010 R016 Relating to Credit and Debit Card Convenience Fees. City of Culver City California Agenda Item Report Item Number: C 6 Meeting Date: 08/09/2010 CITY COUNCIL AGENDA ITEM: Adoption of a Resolution Amending Exhibit C of Resolution No. 2010 R016 Relating to Credit and Debit Card Convenience Fees. Contact Person/Dept.: Jeff S. Muir/Finance Fiscal Impact: Yes X No General Fund: Yes X No Phone Number: 310/253 5865 Public Hearing: Action Item: Attachments: X Commission Action Required: Yes No X Date: _______________ Public Notification: (E Mail) Meetings and Agendas City Council (08/05/10) Department Approval: Jeff Muir (08/02/10) Chief Financial Officer Approval: Jeff Muir (08/02/10) City Attorney Approval: Carol Schwab (by H. Baker) (08/04/10) City Manager Approval: Martin R. Cole (08/05/10) RECOMMENDATION: Staff recommends that the City Council adopt a resolution amending the Credit and Debit Card convenience fees established in Exhibit C of Resolution No. 2010 R016. BACKGROUND: The City currently accepts credit and debit cards at various locations such as the Finance Department the Veteran s Memorial Building and the Police Department. On December 17 2007 the City Council adopted Resolution 2007 R 073 which established a 3% convenience fee for all credit card payment transactions and a $0.50 convenience fee for all debit card transactions. Just like any other retailer the City incurs bank and/or merchant fees each time a customer pays with a credit or debit card. These fees would not otherwise be incurred if a traditional payment mechanism was used (check or cash). The idea behind the current fees was to recapture the cost of providing the convenience of being able to use a credit or debit card particularly in the instance of a substantial payment amount. The City only accepts Visa or MasterCard both with approximate merchant and bank fees equal to 3% of the transaction. The cost of using a debit ca...
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