HomeMy WebLinkAboutMINUTES - 02252014 - C.84RECOMMENDATION(S):
REFER to the Finance Committee of the Board of Supervisors a review of Visa credit card service fees under the
Government and Higher Education Payment Program, and the applicability and impact of allowing other qualifying
and interested County departments to pass payment service fees on to the public/customer.
FISCAL IMPACT:
There is no fiscal impact from this recommended action.
BACKGROUND:
On February 25, 1997, the Board of Supervisors authorized County departments to accept credit card payments from
the public/customers for the payment of various fines and fees. The authorization provided greater flexibility for the
public to pay fees and fines without imposing additional fees. Therefore, departments accepting credit card payments
must treat the bank card company fees as a departmental expense. Since these fees are absorbed as a departmental
expense, they do not offset revenues.
In
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD
COMMITTEE
Action of Board On: 02/25/2014 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYES 4 NOES ____
ABSENT ____ ABSTAIN ____
RECUSE ____
Contact: Enid Mendoza, (925)
335-1039
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes
of the Board of Supervisors on the date shown.
ATTESTED: February 25, 2014
David J. Twa, County Administrator and Clerk of the Board of Supervisors
By: STACEY M. BOYD, Deputy
cc:
C. 84
To:Board of Supervisors
From:David Twa, County Administrator
Date:February 25, 2014
Contra
Costa
County
Subject:Referral to Finance Committee Review of Visa Credit Card Service Fees
BACKGROUND: (CONT'D)
November of 2012, Visa, a leading electronic payment company, implemented the Government and Higher
Education Payment Program. This program is an expansion of a 2006 pilot program, which authorized tax agencies to
pass credit card processing fees to the consumer without violation, by including qualifying “non-taxing” merchants.
The Board Order approved by the Board of Supervisors on February 25, 1997 was consistent with the 2006 pilot
program since it did not apply to the use of credit cards payments for tax collections. However, with Visa’s
Government and Higher Education Payment Program, other County departments that may be qualified as government
and higher education merchants, are not authorized to pass service fees to the public/customer under current Board
authorization.
The Treasurer-Tax Collector has identified 16 Contra Costa County departments that currently accept credit card
payments by the public/customer do not qualify as a tax agency, and therefore must absorb the 2-3% transaction fee.
The Treasurer-Tax Collector recently contracted the services of a third-party processor for property tax payments and
the vendor is offering to provide web and/or point-of-sale transactions at little or no cost to other County departments
and at a reasonable cost to the public/customer. In order for interested departments to accept this offer, credit card
payment service fees would be passed on to the public/consumer. Since the February 25, 1997 Board Order does not
allow for non-taxing departments to pass the fee on to the public/consumer, they are unable to choose to accept the
services proposed by the Treasurer-Tax Collector’s contractor in accordance with the Visa Government and Higher
Education Payment Program.
Therefore, the County Administrator is requesting a Finance Committee review of Visa credit card service fee/s as
stated in the Government and Higher Education Payment Program, and the applicability and impact of allowing other
qualifying and interested County departments to pass payment service fees on to the public/customer.
CONSEQUENCE OF NEGATIVE ACTION:
None.
CHILDREN'S IMPACT STATEMENT:
Not applicable.