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Watertown City Council Approves Transaction Fee for Card Payments

Hand holds card over payment terminal. Text: Watertown Council approves card transaction fees. Background logos of Watertown and Northeast Radio SD.
Watertown City Council Approves New Transaction Fee for Card Payments.

Northeast Radio SD News - Watertown, SD - The Watertown City Council has unanimously approved a resolution that will allow the city to charge customers a transaction processing fee for using credit cards, charge cards, debit cards, and e-checks for city goods and services.


During the discussion, Finance Officer Kristen Bobzien introduced the resolution, noting a recent spike in processing fees that the city currently absorbs. The new measure aims to offset these rising costs by passing the fees back to customers...

The fee is anticipated to be around 3% of the transaction amount. Councilman Michael Heuer, citing his background in business with similar transactions, noted that this percentage is close to the average rates charged by standard payment processors. Heuer added that while the fee is typical, he would support an annual review of alternative processing options for the city.


The resolution covers all city departments that accept card payments. Finance Officer Bobzien clarified that this includes:


· Transactions at the landfill and finance office.

· Payments made through the Park and Recreation CivicPlus system, such as online registration for activities, and transactions at facilities like the ice arena and the zoo.


During the debate, Councilman Jurrens raised a separate but related concern about transaction speeds at popular locations, specifically the ice arena's point-of-sale (POS) system. Jurrens noted observing frequent delays and flow issues when patrons use cards.

Finance Officer Bobzien suggested the delays might stem from a need for more point-of-sale stations rather than from processing speed, noting that the city had already sped up some transactions by eliminating the need for signatures on smaller dollar amounts.


Councilman Jurrens and others stressed the importance of improving transaction speed to enhance the customer experience and potentially increase revenue, especially in locations where cash transactions are not an option…

Heuer echoed this concern, describing the current Park and Recreation POS system as slow for front-of-house execution…

Despite the separate concern about system efficiency, the focus remained on the rising processing fees, which led to the resolution’s approval.


The motion to approve the resolution passed unanimously. The council also unanimously approved the following agenda item about the 3-year contract with CardConnect LLC.


 
 
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