How the City of Peoria Stopped Absorbing Card Fees Without Losing Digital Payers

Peoria, Arizona shifted nearly $1M in annual card processing costs off its enterprise fund and digital adoption didn’t budge.

~$1M

Annual card costs shifted

0%

Drop in digital adoption

100%

Council approval

200k

Residents served

The Challenge

The City of Peoria absorbed 100% of credit card processing fees citywide and annual costs were approaching $1M. The longer it continued, the more it became an equity problem. Years of internal discussion were stalled on three fronts: fears of a resident backlash, complex city code, and cross-departmental alignment. Peoria was stuck without a clear, strategic approach and council buy-in.

Our Approach

In 2024, Peoria introduced a percentage-based service fee for credit card transactions, ensuring costs scale proportionally with payment size rather than falling flat on the city. A no-fee ACH option was preserved, so every resident still has a free way to pay digitally. By pooling transactions citywide, the city optimized pricing and established a single, consistent fee structure across all departments. Before go-live, the team updated city code, built the council case around financial sustainability and payment equity, and partnered with InvoiceCloud’s Marketing services on a proactive, multi-channel resident communication campaign to get ahead of questions before the change took effect.

The Result

With a free ACH alternative available and a proactive communication strategy in place, residents adapted naturally. Unanimous council approval and minimal public resistance validated both the approach and the timing. The result was a cleaner budget, happier Council, and steady adoption.

Card processing costs absorbs nearly $1M annually

Adoption held steady despite fee

Standardized payment structure for other departments and services

Hear From Our Customers

"If it’s a concern — budget constraints or rising costs — I’d say just pull the trigger. The folks that want to use a credit card will continue to do so, and those who don’t want to pay a fee have a free ACH option. It works.”

Raymond Nelson

Revenue Manager, City of Peoria

Get the full story

Read more about how the City of Peoria leveraged a fee structure to improve its operations.

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