New York, NY – Bill to Eliminate Credit Card Fee When Paying Parking Tickets

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    New York, NY – Who should pick up the credit card charges for online payment of parking tickets?

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    Right now in New York City, it’s the public. A $2 “service fee” is tacked on whenever a parking ticket is paid online – ostensibly to pay the processing charges. (There is no fee when a parking ticket is paid by mail.)

    But some on the City Council think it’s time for the city government to shoulder the burden of the processing fees, since it saves money in reduced staffing devoted to processing of checks. Two council members have proposed legislation that would prevent any city agency from charging fees when accepting a credit cards for the payment for fines, civil penalties, taxes, or fees. Aside from parking tickets, this would also effect health department penalties and water fees.

    “You are saving money from their paying online, but you are charging extra,” said Simcha Felder, a Brooklyn City Councilman who is pushing the legislation. “It’s important for the agencies to send the message that we are not nickel-and-diming you.”

    He added, “We have to make a distinction between an entity that is created to make profit and the city.”

    The city issues about 10 million parking tickets a year and they are a major revenue source. This fiscal year the tickets are expected to bring in $593 million, and next year the mayor’s budget expects $686 million. About two-thirds of parking summons are paid, and of those that are paid, about a quarter are paid online. That brings in about $4 million in fees a year.

    The mayor’s office said it would not comment on legislation before a hearing.

    Gale Brewer, a Manhattan City Councilwoman who is co-sponsoring the legislation, said that until the mid-1990s, the city didn’t take credit cards for fines. This became a problem when cars were towed — particularly for international tourists who did not have American checkbooks, nor easy access to cash. “They get their cars towed. They don’t read the signs,’ she said. “They are not savvy New Yorkers about where to park.”

    It was not easy for governments to start accepting credit cards because nearly all fees and fines are regulated under city law, she recalled. “We spent a great deal of time going back and forth with the credit card companies and the city’s law department,” said Ms. Brewer, who worked for the intergovernmental affairs office at the time under the Dinkins administration.

    Now she thinks the new proposal would shed light on the fees, which she says draw complaints. “I think it would be good to have a hearing on the topic,” she said. “People are very suspicious of government.”

    New York City would not be the first city to eliminate credit card fees on some charges. In 2007, San Francisco removed its $2.75 charge in order to encourage online payment and to make things more convenient for residents.


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    12 Comments
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    Anonymous
    Anonymous
    14 years ago

    BTW, it’s illegal for a company to charge more if you use a credit card to pay – so why should the city be exempt?

    Anonymous
    Anonymous
    14 years ago

    About time

    Anonymous
    Anonymous
    14 years ago

    So instead of the person who was ticketed and chose to pay with a credit card (more airline miles perhaps?) paying the fee, the city council thinks that I should pay it? After all it is us the taxpayers who would be paying in the proposed case, and even though it is not my ticket, I do pay my taxes. Let the ticket holder who chooses to use a credit card pay the additional fee!

    Anonymous
    Anonymous
    14 years ago

    I just witnessed how a van was by the pump and a cop came and stopped to give a ticket.the driver of the van quickly tried to leave(like all of us do) and in doing so gave the police car a small bump.backup came and there is an investigation going on.this is crazy.

    Anonymous
    Anonymous
    14 years ago

    you know what will happen they will take of the $2 convenience fee and just raise ticket prices $10 instead.

    Anonymous
    Anonymous
    14 years ago

    Hey guys… YOU live in that hell hole of a city. That city panders to its lowest element.

    But, then again, it is a business. Any business takes care of its best customers. Those who choose to use their parking meter extra time charges (falsely called fines), are paying very expensive fees to park their cars. They are good customers. Why should the City not give them some sort of prefrential treatment.

    Besides, haven’t y’all caught on yet. The City makes the responsible people pay for the irresponsible people. They call it democracy, or something like that….
    Workers who are barely earning enough to live on, pay taxes to support those too lazy to work.
    Workers who can’t afford their own health insurance, pay for the bums to get free medical insurance.
    Those who don’t park illegally will now pay the credit card fees. Sounds like a small thing, … considering.

    But, I know it bites. Where I live, nowhere near NY, Burich Hashem, they City charges me a $2.00 fee to pay my water bill online on their website.
    Of course, I can mail them a check and save the $2.00, and their clerks will have to manually process the payment.

    What can I say? Governments are evil.

    convenience fee
    convenience fee
    14 years ago

    Yes, THAT is what they call it when I pay my water bill online. They charge me a $2 convenience fee. I pay it. It is easier. I resent it though, since it is cheaper for them to have me pay online. It really is a rip off. But, that is the job of government. To steal money from the people it governs.

    Varimillito
    Varimillito
    14 years ago

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