PREPARED BY: ARTURO CASTILLO DATE OF MEETING: 04/20/2026
SUBJECT:
TITLE
CONSIDER ADOPTING RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN PABLO APPROVING THE TRANSFER OF CREDIT CARD CONVENIENCE FEES TO CONSUMERS FOR ALL ONLINE AND REMOTE CREDIT CARD TRANSACTIONS
CEQA: This proposed action is not a project as defined by CEQA.
Label
CITY MANAGER RECOMMENDATION
Recommendation
Adopt Resolution
Body
COMPLIANCE STATEMENTS
Continue Best Management Practices, Fiscal Excellence, and Fiscal Transparency is a major policy goal contained in the FY 2024-26 City Council Priority Workplan.
BACKGROUND
The City of San Pablo has historically absorbed all credit card processing and merchant service fees associated with payments for City services. These fees are charged by the City's two primary credit card processing providers Global Payments and First Data and are recorded under General Ledger Account 100-1430-43500.
Credit card convenience fees are standard charges assessed by payment processors when customers use credit cards to pay for government services. These fees typically range from 2.50% to 3.95% of the transaction amount, depending on the provider and payment method. These fees apply to all credit card transactions regardless of whether the payment is made on-site or remotely, as the merchant service provider charges the City for each transaction processed.
In January 2026, the Finance Department researched credit card convenience fee practices among Contra Costa County cities to recommend whether the City should continue absorbing these fees or transfer them to consumers. Staff conducted a comprehensive review of fee practices at comparable local jurisdictions and analyzed the City's historical credit card processing costs.
On April 1, 2026, the Budget, Fiscal and Legislative Standing Committee (BFLSC) reviewed the staff presentation and recommended that City Council approve the transfer of credit card convenience fees to consumers for ...
Click here for full text