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Illinois town implements transaction fee

September 14, 2011

Residents of the village of Montgomery, Illinois, can go online to make utilities payments, pay permit fees and handle other transactions.

Residents of the village of Montgomery, Illinois, can go online to make utilities payments, pay permit fees and handle other transactions.

However, a recent ruling by the Village Board will result in a $2 credit card processing fee once the site goes live on December 9, the Montgomery Patch reports.

According to finance director Jeff Zoephel, Montgomery began accepting credit payments on its site in August 2010, but the credit card processing company it uses charges the village two percent of each transaction, as well as a 25-cent flat fee for each time a resident swipes a card.

Trustee Bill Keck sees the new charges as a cost-saving measure.

“The program isn’t free to us, there’s an associated cost,” Keck told the news source. “We’re looking for ways to cut costs. It’s a small enough fee that it shouldn’t be (a deterrent).”

The village has paid approximately $9,820 in transaction fees over the past year, with a record 454 online payments taking place in July.

Montgomery isn’t the only town charging its residents fees to use online services. The Record reports that the Ridgewood, New Jersey, school district is requiring a $3.50 charge per transaction for its new website that lets parents of elementary school students make food purchases.  

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