Credit Card Fee Changes as of Monday, Nov. 2

As part of the 2025 budget process, the City Council reviewed a "menu of options" to reduce reliance on reserves to balance the budget and agreed that the City should begin collecting credit card convenience fees to offset charges paid to the merchant processor, credit card gateway, and financial institutions. 

These costs have increased over the years, with the City paying $1.1 million in credit card fees in 2024 and $1.3 million in 2025. Passing along credit card fees received an affirmative response from a majority of City Council members at the time, and this was among the changes incorporated into the adopted FY2025 budget (p. 14) and the subsequent FY2026 budget, with staff noting that implementation would take some time. The fee for these transaction services will be a minimum of 2.23% or $1.

This is not a new tax or a revenue-generating measure for the City.

Departmental Rollout and Implementation Schedule

Implementation begins in fall 2026 and continues through the remainder of the year across City departments and payment channels:

• Fall 2026 
• Phase 1 includes Police, Fire, and City Clerk: Vital records (birth and death certificates), FOIA requests, and City seal transactions.
• Fall/Winter/Spring 2026-2027:
• Law & Health Departments: Liquor licensing and public health permits.
• Public Works & Community Development: Building permits, contractor licenses, and related trade permits.
• City Manager’s Office: General business licenses, special assessments, and property transactions.
• Water Bureau, January 2027: Utility billing, including water and sewer accounts.
• Administrative Services & Human Resources: Administrative fees and internal service payments.
• Administrative Adjudication: Municipal citations, ordinance violations, and administrative hearings.
• City Collector’s Office: Centralized cashiering and front-desk collections.

Community Guidance and Payment Alternatives

Passing along these transaction costs keeps the City fiscally responsible and is consistent with practices in peer municipalities. Residents who want to avoid the fee can use free payment options, such as paying by check or cash at City facilities.  

We appreciate our community’s understanding and patience as we continue to serve effectively. For questions, please call/text 847-448-4311 or simply dial 3-1-1 while in Evanston.