Town suspends some credit card payments (Printed Feb. 12, 2010)
By David Harry
Staff Writer
Town Hall will be closed Monday, Feb. 15, for Presidents Day.
When it reopens Tuesday, residents will have one less option to pay tax bills and other municipal fees.
Scarborough Town Manager Tom Hall announced last week that credit card payments will not be accepted because processing fees are straining town finances.
The moratorium will last through June 30, the end of the fiscal year, unless arrangements for set rate instead of variable processing fees can be made sooner, he said.
Credit card processing fees are assessed on the amount charged and the customer’s credit worthiness, Hall said.
While Hall searches for a way to provide set fees on processing he also noted a change in state law allows towns to pass on processing fees to residents who use credit cards. The town will begin to pass on those fees when credit card payments resume.
Since fiscal year 2007, the town budget for paying credit card fees increased from $39,000 to the current $98,000, according to information provided by Hall.
The information shows the town paid more than $88,000 in fees in 2007. In 2008, the budget was increased to $91,500 and actual fees totaled more than $107,000. Last year the town set aside $120,000 and paid more than $114,000.
The town has paid more than $61,000 of the $98,000 set aside for this year. Hall said it is time to limit credit card payments and rein in fees as the town faces a potential municipal budget gap of $300,000.
Debit card payments will still be accepted because set fees are charged for processing the payments, Hall said. Online credit card payments for the community services department will still be accepted.
“It is a vital piece of customer service,” Hall said of online payments for recreation programs operated by the department.
Payment by plastic is not a common practice in the area, according to local officials and Web sites.
In Saco, Deputy Tax Collector Denise Pendleton said officials are considering allowing credit card payments, but the sliding fee scale has prevented the practice so far.
According to the Cape Elizabeth and South Portland Web sites, credit and debit card payments are not accepted with the exception of online car registration payments linked to the Maine Web site.
Staff writer David Harry can be reached at 282-4337, ext. 219
Staff Writer
Town Hall will be closed Monday, Feb. 15, for Presidents Day.
When it reopens Tuesday, residents will have one less option to pay tax bills and other municipal fees.
Scarborough Town Manager Tom Hall announced last week that credit card payments will not be accepted because processing fees are straining town finances.
The moratorium will last through June 30, the end of the fiscal year, unless arrangements for set rate instead of variable processing fees can be made sooner, he said.
Credit card processing fees are assessed on the amount charged and the customer’s credit worthiness, Hall said.
While Hall searches for a way to provide set fees on processing he also noted a change in state law allows towns to pass on processing fees to residents who use credit cards. The town will begin to pass on those fees when credit card payments resume.
Since fiscal year 2007, the town budget for paying credit card fees increased from $39,000 to the current $98,000, according to information provided by Hall.
The information shows the town paid more than $88,000 in fees in 2007. In 2008, the budget was increased to $91,500 and actual fees totaled more than $107,000. Last year the town set aside $120,000 and paid more than $114,000.
The town has paid more than $61,000 of the $98,000 set aside for this year. Hall said it is time to limit credit card payments and rein in fees as the town faces a potential municipal budget gap of $300,000.
Debit card payments will still be accepted because set fees are charged for processing the payments, Hall said. Online credit card payments for the community services department will still be accepted.
“It is a vital piece of customer service,” Hall said of online payments for recreation programs operated by the department.
Payment by plastic is not a common practice in the area, according to local officials and Web sites.
In Saco, Deputy Tax Collector Denise Pendleton said officials are considering allowing credit card payments, but the sliding fee scale has prevented the practice so far.
According to the Cape Elizabeth and South Portland Web sites, credit and debit card payments are not accepted with the exception of online car registration payments linked to the Maine Web site.
Staff writer David Harry can be reached at 282-4337, ext. 219
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