City to Implement Payment Card Processing Fees Jan. 1

The Rochester City Council has approved a new payment card processing fee policy that will take effect Jan. 1, 2027. Under the policy, customers who choose to pay for certain City services with a credit or charge card will pay a surcharge or service charge to help offset the processing fee. 

The City currently absorbs the processing fees associated with accepting credit and charge card payments. In 2025, those fees totaled approximately $511,000. The new policy will shift more of those processing fees to customers in the form of a surcharge or service charge, rather than covering them through the City budget. Residents will not be charged the surcharge or service charge for transit services and parking ramp usage as they will be exempt from the new policy. 

Customers can avoid payment card surcharge or service charge by choosing a no-fee payment method, such as cash or check. Electronic bank transfer (ACH) will also be available for eligible commercial customers.  

Although the City offers multiple payment systems to provide customers with greater convenience and flexibility, surcharges will be set at 3.0% of the total transaction amount. For parking-related services, excluding parking ramp usage, the City will instead apply a flat service fee equivalent to 3.0% of the transaction amount. These charges will offset a portion of the City's payment processing costs, which average closer to 5%. Customers will be informed of any applicable charges before completing their transactions. 

The City will provide additional information on the City website and social media channels before Jan. 1 about where surcharges and service charges apply, the charges associated with different payment methods and the no-fee options available for City services.