Leesburg to begin charging service fees for electronic utility payments!!

[Rainger99]

If you have been paying your Leesburg utility bills by credit card, please note that Leesburg is now charging a service fee.

Starting March 1, 2024, the City of Leesburg will begin charging a transaction fee for all utility payments made by electronic means.

Electronic processing fees will be encountered by customers for the following transactions:

ACH/eCheck utility payments will have a $1.00 convenience fee
Credit/debit card utility payments will have a $3.50 convenience fee
Utility customers can avoid the fees by using the auto-pay option linked to a checking or savings account, paying in person at City Hall with cash or a paper check or paying with cash at AMSCOT locations.

[Shipping up to Boston]

Another reason why I still keep checks around. T Mobile used to let you pay in person (no fee), now it’s $5 for that. The only way to push back is to send a check. Not a big fan of giving every entity my CC info. Certainly not if a fee is initiated doing so. Some would say it’s only a couple of bucks...but if other utilities follow suit which they are, it adds up. Not to stray from the point but when was the last time someone got their identity stolen or account hacked using cash?

[asianthree]

Pay with bank app, no fees directly into that business, unless it’s a person, then bank mail a check

[shut the front door]

They are late to the party. Convenience charges have been around for a long time. Credit card pmts cost them money. I'd pass that along to the customer, too.

[Shipping up to Boston]

I would agree with the prior post if he was talking about a small business. We’re talking about conglomerates and multi million/billion dollar outfits that could absorb these fees.

[retiredguy123]

Another reason why I still keep checks around. T Mobile used to let you pay in person (no fee), now it’s $5 for that. The only way to push back is to send a check. Not a big fan of giving every entity my CC info. Certainly not if a fee is initiated doing so. Some would say it’s only a couple of bucks...but if other utilities follow suit which they are, it adds up. Not to stray from the point but when was the last time someone got their identity stolen or account hacked using cash?

Pay with bank app, no fees directly into that business, unless it’s a person, then bank mail a check
Reading the original post, I don't see an option to mail a paper check? If you are using a paper check, it looks like you need to deliver it in person. Maybe the OP can clarify.

[JGibson]

If folks buried them in paper checks taking up many man hours they would quickly drop the $1.00 fee

[Rainger99]

Reading the original post, I don't see an option to mail a paper check? If you are using a paper check, it looks like you need to deliver it in person. Maybe the OP can clarify.

The bill says

Payments can be mailed to:
City of Leesburg
P.O. Box 491286
Leesburg, Florida 34749

But it didn't say whether there was a charge.

I asked them whether I could mail a check in without a "convenience fee." She said that she had to check with her supervisor. After a few minutes, she told me that they would accept a check in the mail without any additional charge.

I will let you know next month if she was correct.

[fdpaq0580]

If folks buried them in paper checks taking up many man hours they would quickly drop the $1.00 fee

True! Plus, the "convenience" (ease/convenience) is for them more than us. So, imo we should be getting a discount instead of being charged.

[Topspinmo]

If you have been paying your Leesburg utility bills by credit card, please note that Leesburg is now charging a service fee.

Starting March 1, 2024, the City of Leesburg will begin charging a transaction fee for all utility payments made by electronic means.

Electronic processing fees will be encountered by customers for the following transactions:

ACH/eCheck utility payments will have a $1.00 convenience fee
Credit/debit card utility payments will have a $3.50 convenience fee
Utility customers can avoid the fees by using the auto-pay option linked to a checking or savings account, paying in person at City Hall with cash or a paper check or paying with cash at AMSCOT locations.

Fees = tax or way to run up bill.

[fdpaq0580]

Fees = tax or way to run up bill.

True! Like charging extra if you pay early. It only benefits them. The boss wants a new car and someone has to pay for it.

[vintageogauge]

I would agree with the prior post if he was talking about a small business. We’re talking about conglomerates and multi million/billion dollar outfits that could absorb these fees.

They'll get the money one way or another.

[shut the front door]

True! Plus, the "convenience" (ease/convenience) is for them more than us. So, imo we should be getting a discount instead of being charged.

I don't know what world you live in where it's more convenient to write a check, buy a stamp, and take it to a mailbox than it is to sit in your house at a computer and make a payment in 30 seconds. :ohdear:

[Shipping up to Boston]

Thankfully, there are many who still choose principle over convenience. Convenience usually means more fees. Prior poster was correct, some people don’t get that a fee is a tax.

[CoachKandSportsguy]

hmmm, i suspect that those visa fees charging the customer, though small, are all adding up to big bucks. And the credit card company game is to stick higher fees to vendors, and enticing their customers with higher rewards back! Remember, its about a duopoloy, and they have to grow, and if volume doesn't change, then vendor fees must go up. And if the marketing departments are battling for customers with higher cash back, then the vendors take the hit.

And last time I checked, Leesburg utilities, wasn't a commercial company, but a government entity, with a fixed tax based budget. So convenience has a profit motivated free enterprise cost over free, who would have thunk it?

[Djean1981]

Paying online requires far less manual labor - which should result in a discount.

[retiredguy123]

I cannot understand why they call it a "convenience" fee. Don't they know that it just makes people mad? I also hate when a company says "Thank you for your patience". Most people are not patient.

[shut the front door]

hmmm, i suspect that those visa fees charging the customer, though small, are all adding up to big bucks. And the credit card company game is to stick higher fees to vendors, and enticing their customers with higher rewards back! Remember, its about a duopoloy, and they have to grow, and if volume doesn't change, then vendor fees must go up. And if the marketing departments are battling for customers with higher cash back, then the vendors take the hit.

And last time I checked, Leesburg utilities, wasn't a commercial company, but a government entity, with a fixed tax based budget. So convenience has a profit motivated free enterprise cost over free, who would have thunk it?

When you pay your property taxes online with a credit card, you pay a convenience FEE (not a tax, a fee) and it has been that way for many years. Last I checked, the counties are gov entities, not commercial companies. You have a choice, keep living in 1970 or pay a fee for the convenience of living in this century.

[CoachKandSportsguy]

When you pay your property taxes online with a credit card, you pay a convenience FEE (not a tax, a fee) and it has been that way for many years. Last I checked, the counties are gov entities, not commercial companies. You have a choice, keep living in 1970 or pay a fee for the convenience of living in this century.

I don't pay property taxes online, I send a bank check in because I am cheap, and the fee which is being requested by the county is the recovery of the credit card fee which the credit card company assesses the vendor using the service, and its anywhere from 2% to 7% of the charge, depending upon various factors. The fee being recovered by the county government originates from the commercial enterprise charging a fee for using their credit card services. it is not a tax, but a service fee for the type of payment.

Convenience is never free, everyone pays for it somehow. The really funny part is people are fine paying for the fee if its bundled into the price and they can't see it. If they see it, they get all tied up in their underwear about it. .

The government can't bundle the credit card service fee into the taxes, so it must be separate to recover the cost.

I did a financial analysis once for a building installation and service company, $2B in sales 15 years ago, 2,000,000 customers and buildings across the US and canada. They were reviewing their invoice design and billing process, and there were multiple invoice formats used. Looking at 30,000 invoice sample, the invoices with line item details took longer to receive payment from customers than single line item invoices. The average different was 2 days, regardless of the invoice total, large or small, didn't matter. When trying to collect $1B in cash, to pay suppliers and personnell, payment days matter. If people saw the individual expenses they had more time to think about the bill and to complain about the cost, which was in a signed contract anyway.

We started accepting credit cards for small jobs, <$20,000, and once the credit card fees starting piling up over $1M for us to pay the credit card companies, then we had to adjust the price and start nickel and diming everyone to cover those fees. Sometimes the fees were visible other times they were not. $1.0M in extra fees for credit cards was the equivalent of 10 peoples' salary back then, the equivalent cost of convenience. . . whose said credit cards shouldn't cost more because there isn't labor.

someone has to pay for that cash back you are getting, and it isn't free from the card company.

[retiredguy123]

I don't pay property taxes online, I send a bank check in because I am cheap, and the fee which is being requested by the county is the recovery of the credit card fee which the credit card company assesses the vendor using the service, and its anywhere from 2% to 7% of the charge, depending upon various factors. The fee being recovered by the county government originates from the commercial enterprise charging a fee for using their credit card services. it is not a tax, but a service fee for the type of payment.

Convenience is never free, everyone pays for it somehow. The really funny part is people are fine paying for the fee if its bundled into the price and they can't see it. If they see it, they get all tied up in their underwear about it. .

The government can't bundle the credit card service fee into the taxes, so it must be separate to recover the cost.

I did a financial analysis once for a building installation and service company, $2B in sales 15 years ago, 2,000,000 customers and buildings across the US and canada. They were reviewing their invoice design and billing process, and there were multiple invoice formats used. Looking at 30,000 invoice sample, the invoices with line item details took longer to receive payment from customers than single line item invoices. The average different was 2 days, regardless of the invoice total, large or small, didn't matter. When trying to collect $1B in cash, to pay suppliers and personnell, payment days matter. If people saw the individual expenses they had more time to think about the bill and to complain about the cost, which was in a signed contract anyway.

We started accepting credit cards for small jobs, <$20,000, and once the credit card fees starting piling up over $1M for us to pay the credit card companies, then we had to adjust the price and start nickel and diming everyone to cover those fees. Sometimes the fees were visible other times they were not. $1.0M in extra fees for credit cards was the equivalent of 10 peoples' salary back then, the equivalent cost of convenience. . . whose said credit cards shouldn't cost more because there isn't labor.

someone has to pay for that cash back you are getting, and it isn't free from the card company.
If a contractor or service technician comes to my house and performs work, I will pay a 3 percent or so fee to charge the work to a credit card. I do this to lock in the Federal credit card protection in the event that I need to call the company back to correct an error. To me, it is worth the credit card fee for peace of mind, and I also benefit from the credit card cash back policy. If I call them to come back and they blow me off, I can dispute the charge.

[Normal]

Man this place can be messed up when paying bills. I got on our Leesburg utility site Click2Gov Utility Billing (https://lees-egov.aspgov.com/Click2GovCX/index.html) Once you are on they have a number to call to set up autopay bank transferring. It can be work dealing with Leesburg.gov for our utilities; we already deal with Wildwood Home Page | Wildwood Florida (https://www.wildwood-fl.gov/) for most other services. There should only be one city in charge of everything.

There should be more of an effort to just rename everything claimed by different cities The Villages? That’s the city listed by the US post office anyway.

[asianthree]

Pay with bank app, no fees directly into that business, unless it’s a person, then bank mail a check

Reading the original post, I don't see an option to mail a paper check? If you are using a paper check, it looks like you need to deliver it in person. Maybe the OP can clarify.

Read my post…bank app directly to business, a person such as lawn service the bank mails a check.
Out of 16 accounts that is directly deposited into business account on the day a choose (such as Seco, TECO, or SSU) pay with zero fee through any three of my banks.

The only check is my home watch person, that is mailed 4 days before my request pay date. It arrives on the day to be posted. No fees from my bank or any business

[retiredguy123]

Read my post…bank app directly to business, a person such as lawn service the bank mails a check.
Out of 16 accounts that is directly deposited into business account on the day a choose (such as Seco, TECO, or SSU) pay with zero fee through any three of my banks.

The only check is my home watch person, that is mailed 4 days before my request pay date. It arrives on the day to be posted. No fees from my bank or any business
That is how I pay Leesburg Electric now. I transfer money directly from my bank account to Leesburg Electric. But the original post seems to indicate that it may now cost a one dollar fee to pay that way. It is an ACH transfer.

[CoachKandSportsguy]

If a contractor or service technician comes to my house and performs work, I will pay a 3 percent or so fee to charge the work to a credit card. I do this to lock in the Federal credit card protection in the event that I need to call the company back to correct an error. To me, it is worth the credit card fee for peace of mind, and I also benefit from the credit card cash back policy. If I call them to come back and they blo me off, I can dispute the charge.

I agree with this! Credit card fees are what they are, and if you want to use a credit card, great! Just pay the bill and move along, nothing to see here. That's what I do as well. In the last two months, I have had two auto renewals which I had wanted to cancel. Both times on the day of the renewal and the card charge, i wrote a quick email to the vendor and they cancelled the card charges and refunded the renewal fee. no problem, without having to go to disputes.

Credit cards are what I do everything with these days, so if someone wants to upcharge me for using it, fine, whatever, they want to keep a cash price advertised, to be as low as possible to get business in, and charge the credit card fee as a payment/exit fee to keep their cash price as advertised. . I can always pay cash if desired.

[OrangeBlossomBaby]

If you have been paying your Leesburg utility bills by credit card, please note that Leesburg is now charging a service fee.

Starting March 1, 2024, the City of Leesburg will begin charging a transaction fee for all utility payments made by electronic means.

Electronic processing fees will be encountered by customers for the following transactions:

ACH/eCheck utility payments will have a $1.00 convenience fee
Credit/debit card utility payments will have a $3.50 convenience fee
Utility customers can avoid the fees by using the auto-pay option linked to a checking or savings account, paying in person at City Hall with cash or a paper check or paying with cash at AMSCOT locations.

Convenience fee is not what the credit card company charges to the utility company. It's an added bit of revenue. Credit card companies usually charge between .3 and .9% of the transaction price, and that amount is usually absorbed into the "cost of doing business." So for instance - a $100 electric company bill would cost the electric company +/- 30-90 cents to process with the credit card company. If they're charging $3.50 then they're charging you $2.50 penalty for not paying by check or in cash.

I wonder what their fee would be if everyone decided to pay in bitcoin.

[Pairadocs]

I cannot understand why they call it a "convenience" fee. Don't they know that it just makes people mad? I also hate when a company says "Thank you for your patience". Most people are not patient.

Much like the various ticket outlets on line and their horrendous "convenience" fees. That's a very accurate term for it because it IS very convenient for them, exactly like TV, internet, mobile, etc. providers; once they get all the federal and local taxes added, they continue the bill with various frivolous "fees" (delivery fee, didn't most of you think you were paying for "delivery" of the service you contracted for in the actual bill amount ? ) that are ALL very convenient, for someone, but certainly not convenient for the customer ! I often wonder if most people would be dumbfounded if they ever realized the true total percentage of taxes they pay. Most think of retail taxes on purchases, federal income taxes, and perhaps, gasoline taxes. But if individuals would keep track of every cent of taxes they pay in just 6 months, I think most would be absolutely shocked !

[Rainger99]

I often wonder if most people would be dumbfounded if they ever realized the true total percentage of taxes they pay. Most think of retail taxes on purchases, federal income taxes, and perhaps, gasoline taxes. But if individuals would keep track of every cent of taxes they pay in just 6 months, I think most would be absolutely shocked !

I know that flying is mostly taxes and fees. I just did a sample roundtrip fare Orlando to London. The cost is $650.50 but the price breakdown shows the flight to cost $101 and taxes and fees to be $549.50!!

I was stunned at the number so I did it on orbitz and kayak and got the same result!!!

Traveler 1: Adult
$650.50
Flight
$101.00

Taxes and fees
$549.50
Trip total
$650.50
Rates are quoted in US dollars

[Two Bills]

I know that flying is mostly taxes and fees. I just did a sample roundtrip fare Orlando to London. The cost is $650.50 but the price breakdown shows the flight to cost $101 and taxes and fees to be $549.50!!

I was stunned at the number so I did it on orbitz and kayak and got the same result!!!

Traveler 1: Adult
$650.50
Flight
$101.00

Taxes and fees
$549.50
Trip total
$650.50
Rates are quoted in US dollars

Have you added seat reservation and baggage charge?
We sometimes pay more for a suitcase, than an adult fare on some short haul flights around Europe!

[Rainger99]

Have you added seat reservation and baggage charge?
We sometimes pay more for a suitcase, than an adult fare on some short haul flights around Europe!

That did not include a baggage charge!

[Bill14564]

Convenience fee is not what the credit card company charges to the utility company. It's an added bit of revenue. Credit card companies usually charge between .3 and .9% of the transaction price, and that amount is usually absorbed into the "cost of doing business." So for instance - a $100 electric company bill would cost the electric company +/- 30-90 cents to process with the credit card company. If they're charging $3.50 then they're charging you $2.50 penalty for not paying by check or in cash.

I wonder what their fee would be if everyone decided to pay in bitcoin.

About 10 years ago a business I was involved with was charged approx 2% fees to be able to accept credit cards. I don't recall the exact breakdown so the fee to Mastercard itself might have been low but with transaction fees and network fees and others the total came to 2%.

[CoachKandSportsguy]

Convenience fee is not what the credit card company charges to the utility company. It's an added bit of revenue. Credit card companies usually charge between .3 and .9% of the transaction price, and that amount is usually absorbed into the "cost of doing business." So for instance - a $100 electric company bill would cost the electric company +/- 30-90 cents to process with the credit card company. If they're charging $3.50 then they're charging you $2.50 penalty for not paying by check or in cash.

I wonder what their fee would be if everyone decided to pay in bitcoin.

I think you are off on the decimals. . try about 3-9%

[Shipping up to Boston]

Much like the various ticket outlets on line and their horrendous "convenience" fees. That's a very accurate term for it because it IS very convenient for them, exactly like TV, internet, mobile, etc. providers; once they get all the federal and local taxes added, they continue the bill with various frivolous "fees" (delivery fee, didn't most of you think you were paying for "delivery" of the service you contracted for in the actual bill amount ? ) that are ALL very convenient, for someone, but certainly not convenient for the customer ! I often wonder if most people would be dumbfounded if they ever realized the true total percentage of taxes they pay. Most think of retail taxes on purchases, federal income taxes, and perhaps, gasoline taxes. But if individuals would keep track of every cent of taxes they pay in just 6 months, I think most would be absolutely shocked !

Spot on. That was my original point. If you add all of this up, it’s significant.

[Bill14564]

That is how I pay Leesburg Electric now. I transfer money directly from my bank account to Leesburg Electric. But the original post seems to indicate that it may now cost a one dollar fee to pay that way. It is an ACH transfer.

I wonder of it matters where the ACH is initiated. If a customer asks Leesburg Electric to pull funds from the bank then Leesburg Electric initiates the transfer and charges a fee. If the customer asks their bank to push the money to Leesburg Electric then the bank initiates the transfer. Perhaps the ACH fee is paid by the side that initiates the transfer and the bank waives the fee for its account holders.

[retiredguy123]

I wonder of it matters where the ACH is initiated. If a customer asks Leesburg Electric to pull funds from the bank then Leesburg Electric initiates the transfer and charges a fee. If the customer asks their bank to push the money to Leesburg Electric then the bank initiates the transfer. Perhaps the ACH fee is paid by the side that initiates the transfer and the bank waives the fee for its account holders.
I think that may be correct. I still don't pay a fee to pay my water bill using my bank's ACH bill pay system. But if you use the district's vender to make the ACH payment, they charge you a $0.95 fee. Hopefully, Leesburg will follow the same procedure.

[CoachKandSportsguy]

Spot on. That was my original point. If you add all of this up, it’s significant.

from both the customers' point of view and the vendors' point of view.

Just ordered some official documents from my local town hall up here in MA, and the person stated that if paid by credit card there will be an additional charge for using the credit card because the town can't pay the credit card processing fees.

with cash or check, no additional fee.

[asianthree]

That is how I pay Leesburg Electric now. I transfer money directly from my bank account to Leesburg Electric. But the original post seems to indicate that it may now cost a one dollar fee to pay that way. It is an ACH transfer.

That was what I thought when SSU went to their preferred payment through them, for a fee if you choose not to use their system. I continued with my bank, so far no fees have surfaced. We are preferred customers with our banks, was told no ACH fees apply with our accounts

Wonder if fee is for Leesburg to pull payment from your account, is ACH, but if your bank sends it then maybe no ACH fee? I don’t have Leesburg utilities so can’t verify

[Rainger99]

I think that may be correct. I still don't pay a fee to pay my water bill using my bank's ACH bill pay system. But if you use the district's vender to make the ACH payment, they charge you a $0.95 fee. Hopefully, Leesburg will follow the same procedure.

ACH is the Automated Clearing House network.

Automated Clearing House (https://www.fiscal.treasury.gov/ach/)

[JMintzer]

I think you are off on the decimals. . try about 3-9%

I get charged between 2.5-3.0% for accepting CCs...

[Dusty_Star]

That was what I thought when SSU went to their preferred payment through them, for a fee if you choose not to use their system. I continued with my bank, so far no fees have surfaced. We are preferred customers with our banks, was told no ACH fees apply with our accounts

Wonder if fee is for Leesburg to pull payment from your account, is ACH, but if your bank sends it then maybe no ACH fee? I don’t have Leesburg utilities so can’t verify

Good point. I pay practically all my bills via the bank's bill payment system. But, I am also on some kind of waived fees account. So, while I think using the bill payment system is fee free, perhaps the ACH fees are just disappearing, due to account type. While using the ACH system is undoubtedly not 'free' to participating institutions, when divided by number of transactions it might be too tiny, tiny to apply to each one, so they lump it under 'maintenance fees'. Which, if you get the right kind of account, are waived.