Amendment to Rules for Credit and Debit Card Fees

Adopted Rules: Closed to Comments

Agency:
Effective Date: 
Friday, February 7, 2014


Statement of Basis and Purpose of Rule

 On October 2, 2007 Mayor Bloomberg issued Executive Order 106 (E.O. 106), which calls for the City to implement a unified billing, payment, and collection strategy.  E.O. 106 requires all City agencies to establish a system for accepting credit and debit card payments for fees, fines, sales of products, and any other suitable transactions. 

 

To implement this order, the Commissioner of Finance adopted a rule that establishes a consistent policy for accepting credit and debit card payments and a uniform fee to defray the cost incurred by the City from credit and debit card transactions.  The rule requires that City agencies covered by the rule charge a nonrefundable fee of 2.49% of the amount paid for credit and debit card transactions.

 

The rule does not apply to checks, money orders, cash, or other forms of electronic payments such as eChecks.  These forms of payment are accepted without a fee.  The rule also includes exceptions for certain agencies and charges.  This rule creates two additional exceptions.

 

First, it adds an exception for credit and debit card payments paid to the Department of Parks and Recreation for tennis permits, summer camps, and recreation center memberships, because these payments are processed through a third party service, and the City does not directly incur any additional credit or debit card related expenses when accepting them.

 

Second, in response to a comment received, it adds an exception for credit and debit card payments owed for child support, because the City does not incur the administrative costs associated with these payments.  This second exception was not included in the rule’s original proposal.

 

The Department of Finance’sauthority for these rules is found in New York General Municipal Law § 5(c), New York City Administrative Code § 11-105, and New York City Charter §§ 1043 and 1504.