Logo courtesy of Yuba City

YUBA CITY, CA (MPG) - The Yuba City Council voted May 5 to begin charging a 2 percent fee on all debit and credit card payments made to the city, a change officials said was necessary to stop using utility funds to cover rising processing costs tied to bank transactions.

The decision marks the first time Yuba City will pass those charges directly to customers. For years, the city absorbed the fees imposed by card companies, a cost that reached $95,000 this fiscal year. Officials said the expense has grown steadily as more residents pay utility bills online or by card at the counter.

City Manager Robert Bendorf said the change was driven by fairness and the need to keep utility operations financially balanced. He said customers who pay in cash or by bank transfer do not generate processing fees, while card users do, and the city could no longer justify spreading those costs across all ratepayers.

“If a person pays cash, there is no fee. If someone pays with a credit card, there is a fee imposed by the credit card company,” Bendorf said. “When the city absorbs that, the people who do not use cards end up paying for those who do.”

One resident, Gabriella Urdaneta, urged the council to reject the fee. She said the added charge would strain households already dealing with rising costs and would leave residents who rely on debit cards with few practical alternatives.

“We would be paying you to pay you for our water services,” Urdaneta told the council.

Urdaneta added that many families no longer use checks and that cash is not a practical option for residents who cannot make an in-person trip to City Hall.

City officials, however, agreed that continuing to absorb the charges would shift private transaction costs onto residents who never use cards. They said the change was intended to keep costs aligned with the people who generate them.

In supporting the move, Councilmember Marc Shaw said the city still offers no-fee options and that the goal was to keep the system fair for all customers.

“We are not trying to penalize anyone,” Shaw said. “We are trying to make sure the cost falls where the cost is created.”

The fee takes effect immediately and applies to all city transactions paid by debit or credit card, including utility bills.