2014-03-25 Planning & Organisation Committee Agenda Pages 168-231

PLANNING & ORGANISATION COMMITTEE MEETING AGENDA                                 25 MARCH 2014


ORGANISATIONAL SERVICES DEPARTMENT REPORTS

Financial Services

5.   CREDIT CARD SURCHARGE FEES

Author           Co-ordinator Financial Services, Wayne Jensen
                 Organisational Services

Index            ECM/ Subject/ 7.03 2013-2014 Budget

Attachments      Nil



EXECUTIVE SUMMARY

This report seeks Council approval for the implementation of a surcharge to be applied for all
credit card payments received on behalf of Council.

Merchant fees constitute a significant cost for Council over any budget period, and this cost of
doing business is being met from general rate revenue at present. The proposed fee will assist
in recovering a significant portion of this cost from those utilising the facility, and assist with
Council’s future financial sustainability challenges.

It should be noted that Noosa Council applied the same type of surcharge for credit card
payments prior to amalgamation, but this was discontinued by Sunshine Coast Regional Council
in 2008.

RECOMMENDATION

That Council note the report by the Coordinator Financial Services to the Planning &
Organisation Committee dated 25 March 2014 and agree to introduce a credit card surcharge of
0.55% to apply to all Visa and MasterCard payments received, to be implemented as soon as
practicable.



REPORT

Council accepts payments through a range of payment channels, including: online; BPAY;
telephone; in person through Australia Post; in person at Council’s offices; or through one of the
many venues or facilities.

Credit Card payments using either Visa or MasterCard are accepted at the majority of channels,
and there is a broad range of fees imposed by each agency for the merchant facilities provided.
Fees charged include a transaction fee; an ad valorem merchant service fee; an interchange fee;
an equipment fee; and a scheme fee.

Council has paid approximately $50,000 in bank and merchant fees to date, with a significant
portion of these fees relating to credit card payments.




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