Regina, March 1, 2017 – New research by the Canadian Federation of Independent Business (CFIB) shows that credit card transaction costs for the City of Swift Current increased 17 per cent from 2013-2015, while the City of Saskatoon increased by 14 per cent and the City of Regina increased by 12 per cent over the same time period. Some municipalities pay transaction fees for payments made by residents and businesses for municipal services, permits, licenses, etc.
In contrast, the City of Prince Albert does not accept credit cards for any payments (including property tax, utilities, and fees) apart from at recreational facilities, while the City of Moose Jaw only permits the use of credit cards through a ‘user pay’ third party processor.
According to data gathered through a series of Freedom of Information and Protection of Privacy Act requests, from 2013-2015, the City of Swift Current paid $187,736 cumulatively to process credit card transactions. However, as of fall 2016, the City of Swift Current no longer accepts pre-approved credit card payments. In addition, the City of Saskatoon paid $732,083 cumulatively to process credit card transactions while the City of Regina paid the most in credit card processing fees, $816,187, during the same time period. However, to control their costs, the City of Regina tenders their banking services every four years.
“While municipalities provide residents and local businesses the convenience of using credit cards to pay for services, they also need to be aware of the costs and look for ways to control and reduce those expenses,” said Jennifer Henshaw, CFIB’s Policy Analyst for Saskatchewan and author of the report.