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PROPOSAL:

Adopt Resolution Authorizing Acceptance of Credit Card (Discover) Payments of Application Fees Plus Convenience Charge

SYNOPSIS: 

On June 12, 1998, the Board approved recommendations of the Permit Streamlining Task Force which included a recommendation to accept credit card payments for application fees plus convenience charge. Currently, the Discover Card program is available to the AQMD which allows the credit card surcharges to be passed on to the customer.

COMMITTEE: 

Administrative, October 15, 1999, Recommended for Approval

RECOMMENDED ACTION:

Adopt the Resolution to accept Discover credit card payments of application fees plus convenience charge.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

One of the Permit Streamlining Task Force recommendations which the Board approved on June 12, 1998 is the use of credit cards with a convenience charge for payment of application fees. The Discover Card program is the only cost-neutral credit card option available for mail-in or in-person payment of application fees at this time because VISA and MasterCard issuers, by policy, do not permit the merchant to pass on surcharge card fees to the customer. AQMD’s Treasurer, the Los Angeles County Treasurer, requires an authorization from the Board of a cost-neutral credit card acceptance policy. The Treasurer has servicing agreements with the financial institutions and/or credit card processor issuers or draft purchasers for the acceptance and processing of credit card transactions. On behalf of the AQMD, the Treasurer will solicit and enter into a merchant agreement with the Discover credit card processor. The Discover card surcharge fee schedules are expected to range from $1 to $5 per transaction depending on the transaction amount.

Proposal

Staff proposes that the Board approve the attached resolution to implement the recommendation of the Permit Streamlining Task Force to approve the acceptance of credit card payments for application processing fees and allow the credit card surcharges to be passed on to the customer.

Resource Impacts

Due to the cost-neutral policy, only the minimal cost ($30/month) associated with leasing of the credit card processing equipment is expected.

Attachments

Resolution

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