Vacaville to Introduce Credit Card Fees for City Services

New charges aim to offset processing costs and maintain high-quality public services.

Apr. 3, 2026 at 10:18pm

A photorealistic studio still-life featuring a stack of credit cards, a pen, and a city utility bill, symbolizing the abstract concept of municipal finance and payment processing fees.A new wave of credit card processing fees for city services in Vacaville aims to shift the burden away from taxpayers.Vacaville Today

The city of Vacaville, California will begin passing along credit card processing fees to customers for certain city services starting in May and July 2026. The city council voted in January to allow up to a 3% non-refundable fee on credit card transactions, which will impact payments for business licenses, taxes, utilities, recreation programs, and more. Residents will still have the option to pay by cash, check, or electronic bank transfer to avoid the new fees.

Why it matters

As more consumers shift to credit and debit card payments, cities like Vacaville are looking for ways to offset the rising costs of payment processing. This move aims to distribute those fees more equitably, while still providing no-cost options for residents who prefer traditional payment methods.

The details

Beginning May 1, businesses in Vacaville will see the new credit card fees applied to Business License and Transient Occupancy Tax payments. On July 1, the fees will expand to cover Utility Billing, Excise Billing, and Parks and Recreation charges for residents. The city currently absorbs about $400,000 per year in credit card processing costs, but the new fees will allow them to maintain high-quality public services without that financial burden.

  • The Vacaville City Council voted to pass the credit card fees in January 2026.
  • The fees for businesses will take effect on May 1, 2026.
  • The fees for residents will take effect on July 1, 2026.

The players

Vacaville City Council

The governing body of the city of Vacaville, California that voted to implement the new credit card fees.

GeorgeAnne Meggers-Smith

The Assistant City Manager of Vacaville who stated the fees will help maintain high-quality city services while ensuring fairness for all residents.

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What they’re saying

“This change allows the city to maintain high-quality services while ensuring fairness for all residents.”

— GeorgeAnne Meggers-Smith, Assistant City Manager

What’s next

The city will continue to monitor the impact of the new credit card fees and may adjust the percentage charged if needed to cover processing costs without over-burdening residents and businesses.

The takeaway

As more government services shift to digital payments, cities are grappling with the rising costs of credit card processing. Vacaville's approach aims to distribute those fees equitably, while preserving no-cost options for those who prefer traditional payment methods like cash or check.