Credit Card Service Fee
Transfer Proposal
Budget, Fiscal & Legislative Standing Committee
April 1, 2026
City of San Pablo | Finance Department
Executive Summary
The City of San Pablo has been absorbing all credit card service fees, currently exceeding $82,000 per year and growing. Staff recommends transferring these convenience fees to the consumer for all credit card transactions, aligning with the standard practice adopted by neighboring Contra Costa County cities.
$82K+
Annual CC Fees
(FY 24-25)
40%
Fee Growth
Over 3 Years
9+
Local Cities
Already Passing Fees
Providers: Global Payments & First Data (Fiserv)
Historical Cost to the City
16,484
19,963
26,551
42,136
51,495
55,864
0 10000
20000
30000
40000
50000
60000
FY 2022-23 FY 2023-24 FY 2024-25
Global Payments First Data / Fiserv
FY 22-23
Gross Fees: $58,620
Net (after rebates): $47,980
FY 23-24
Gross Fees: $71,458
Net (after rebates): $60,827
FY 24-25
Gross Fees: $82,415
Net (after rebates): $72,146
Fees increased 40% from FY 22-23 to FY 24-25
Contra Costa County Cities Comparison
City Fee Charged Passes to Customer?
Richmond 2.95% Yes
El Cerrito 3.50% Yes
Berkeley 2.85% Yes
Pinole 2.95% Yes (except police fines)
Walnut Creek 3.00% Yes
Concord 2.50% Yes
Contra Costa County 2.75% Yes
Hercules 2.75% – 3.00% Absorbed (City Council resolution) Albany 3.95% Yes
San Pablo 2.99% (e-trackit) Currently absorbed by City
The majority of Contra Costa County cities pass credit card convenience fees to the consumer. San Pablo is among the few still absorbing these costs.
Payment Options for City Consumers
Option 1
In-Person: Check or ACH
No Fee
Customers pay at City Hall by check or ACH
transfer. No convenience fee applies. This option
ensures equitable access to City services at no
additional cost.
Option 2
Credit Card
(On-Site or Online)
Convenience Fee
All credit card payments—whether at City Hall or
online via e-trackit—will include a convenience
fee charged by the service provider and paid by
the customer. Merchant services charge fees on
every transaction regardless of location.
Estimated Annual Savings to the City
Projected Annual Savings
$72,000 – $100,000+
Based on FY 24-25 actuals of $82,415 in gross fees and growing trend. Budget was $83K; actuals projected to exceed $100K.
CURRENT STATE
City absorbs all CC fees
~$82K/year and growing
Subsidizing on-site & online payments
Budget shortfall risk
PROPOSED STATE
All CC fees paid by customer
$72K–$100K+ saved annually
Free check/ACH alternatives remain
Aligned with regional best practices
Implementation Approach
1 BFLSC Review & Recommendation
Present findings and receive committee recommendation to transfer credit card convenience fees to consumers.
April 1, 2026
2 City Council Review & Approval
City Council to review and approve the Transfer Credit Card Convenience Fee transition plan.
April 20, 2026
3 Public Education & Outreach
Communicate payment options and fee structure to residents and businesses. Emphasize free check and ACH alternatives.
May 2026
4 System Configuration & Go-Live
Configure e-trackit and online payment portals to apply the convenience fee for all credit card transactions.
June 2026
Staff Recommendations
1 To receive presentation to Transfer Credit Card Convenience Fees to Consumers for all credit card transactions.
2 Recommend City Council to review and approve City’s Transfer Credit Card Convenience Fee transition plan at the April 20, 2026 City Council meeting.