FOR IMMEDIATE RELEASE
Contact:  Ken Malcom, PIO and Tourism & Downtown Development Director, City of Covington

UTILITY BILL PAYMENTS MADE BY CARDS OR THROUGH INVOICECLOUD WILL INCUR FINANCIAL TRANSACTION PROCESSING FEES BEGINNING DECEMBER 16, 2024

The City of Covington recently announced that financial transaction processing fees would be implemented starting December 16, 2024 if customers use a credit card, debit card, payment service (such as Venmo, PayPal, Google Pay or Apple Pay), or ACH set up via the City’s payment portal, InvoiceCloud, to pay their City of Covington bills.  A discussion during the May 28, 2024 budget work session ultimately led to the decision to pass the processing fees to the customers. At the June 17, 2024 City Council meeting, the decision was ratified when the 2024-2025 Fiscal Year Budget was approved unanimously.

Regarding the decision to pass along fees, Councilmember Jared Rutberg, Post 3 East, stated “During our budget meetings in May, I found that we, the City, were paying over $350,000 in credit card processing fees. Based on fees paid so far this fiscal year, we are on pace to pay over $445,000 in fees, so it’s just getting worse. In order to prevent raising millage or utility rates on everyone to cover this expense, I proposed having the consumers that pay by credit card cover their credit card fees.   After all, it’s not fair for everyone to pay so a few can get their credit card rewards.”

These financial transaction processing fees are as follows:

• 2.95% on any credit or debit card payments; when using a payment service such a Venmo, PayPal, Google Pay or Apple Pay; or when paying by check at the kiosk. There is $1.95 minimum fee.
• $1.95 fee when paying by ACH set up through InvoiceCloud (the City’s online payment portal)
• IVR PHONE: Additional $0.95 for payment methods listed above

The financial transaction processing fees will not generate income for the City and are paid directly to the processing company, InvoiceCloud.  City of Covington Finance Director Randy Smith said, “After the decision by the council was made to move forward with passing along payment processing fees to customers, city staff moved forward with negotiating fees with InvoiceCloud. The City will earn no new revenue with this change.”

There are multiple ways to pay your City of Covington utility bills that will not incur a fee. They include:

• Cash: Paid at the City Hall Customer Service Counter, drive through at City Hall, or via the Bill Pay Kiosk at City Hall
• Checks and Money Orders: Paid at the City Hall Customer Service Counter, drive through at City Hall, mailed, or placed in the night drop box at City Hall
• Autopay or Bill Pay set up through your bank: Utilizing the bill pay option through your own personal bank (in which they send a check on your behalf)
• City Direct Pay: Present a voided check or bank statement that includes your routing and checking/savings number to Customer Service at City Hall and they can set up an automatic withdrawal of the total amount of your bill each month. If you choose this option and you previously used ACH set up through InvoiceCloud, the City’s online payment portal, you must cancel your ACH with InvoiceCloud. Customer Service representatives can assist you with this process when you bring in your payment information.

Councilmember Rutberg reiterated the options available as this change takes place. “Part of this change was to ensure there were multiple ways to pay without paying that 2.95% credit card fee.  Some options are free, some have a $1.95 flat rate fee.  Additionally, we added a 24-hour payment kiosk to increase options to pay your bill.  But the bottom line is if you want to get your reward points, you have to pay your fee—it’s not fair for a cash/check paying customer to pay for your rewards.”    

The kiosk for paying bills outside of City Hall was implemented to create another bill payment option for after-hours customers.  Starting December 16^th, the aforementioned fees will be charged if using a credit card or check at the kiosk, but cash will remain a feeless option for payment. It has been an asset to the community for those needing to pay when City Hall is closed. Over half of the initial customers that utilized the machine used the “Spanish” option when submitting payment, cementing the new feature as a benefit for our diverse community.

If you have questions about whether your ACH was set up via the payment portal or via the City Direct Pay system, contact Customer Service at 770-385-2000 or stop by City Hall at 2194 Emory Street NW.

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