| July 21, 2010

Nevada city to charge citizens for credit card payments

Any residents of Fernley, Nevada, that regularly take on credit card debt to pay their bills from the city will soon find some extra money added to the transactions.

According to a report in the Reno Gazette-Journal, the city council voted unanimously at a recent meeting to approve a fee of $1.14 to be attached to all bills and fees that are paid with a credit card. The charge will include payments on water and sewer bills, fees for building and planning, and fines and fees issued by the city’s municipal court.

The paper said that the idea for the charge arose because the city’s finance director noticed that processing fees paid to “third parties” were costing the city over $38,000 a year. The reason the fee for paying with a credit card will be $1.14 is that it will offset the average price per transaction.

While these processing fees may be a problem, they shouldn’t be for long. President Barack Obama signed a bill into law on July 21 that will put a limit on these so-called “swipe fees,” which critics have attacked as being exorbitant.

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