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Finance Committee 4. 2. Meeting Date: 03/13/2012 By: Diana Lund, Finance Title: Credit Card Analyis Background: The availability of customers being able to use credit cards for payments to the city became available in June 2011. Attached is a month -by -month analyis of revenue collected and fees paid. The majority of credit card collections is atttributed to utility billling customers utilizing the credit card for payment. To date, the city has collected $289,814 since the acceptance of credit cards, of which $227,630 or 79% is for utility billing payments. Prior to the city authorizing the use of credit cards and assuming any processing fees, utility customers could pay for their utility bill through OPUS 21 and pay a transaction fee. You will notice a large increase in credit card usage via utility billing customers when the city assumed the fee and offered more opportunity for payment: on -line, call -in or in person. For the same time period August 2010 - February 2011 (charged transaction fee through OPUS 21) and August 2011- February 2012 (City pays all fees) the amount of revenue collected by credit card usage went from $46,838 to $217,289. After utility billing certification in 2012, which will reflect a full year of credit card usage, it will be telling via the final amount certified, if credit cards were a major contributor in reducing the delinquency. The monthly processing fee is averaging 3.05 %. The $.35 per transaction (especially on those utility accounts who average the $20.00 quarterly for the fixed three fees of storm drainage, recycling and priority light) is what brings the percentage rate of 1.99% if swiped in person or 2.79% if on -line or called in to the higher rate of 3.05 %. The Volume pricing sheet from RevTrak (city's credit card provider) is attached. Funding Source: Credit card collections and processing fees are posted to the respective fund which is typically the general fund for building permits, the PIR fund for special assessments and the enterprise funds of water, sewer, storm water, recycling and street lighting. Council Action: No action required. Informational Only. Credit Card Analysis Credit Card Pricing Attachments Form Review Inbox Reviewed By Date Kurt Ulrich Kurt Ulrich 03/08/2012 03:51 PM Form Started By: Diana Lund Started On: 03/05/2012 07:44 AM Final Approval Date: 03/08/2012