City of Bloomington to Update Credit Card Payment Practices July 1

~ Starting July 1, 2026, residents and customers in the City of Bloomington who choose to pay their business license, permit, plan, and violation fees by credit card will now be responsible for paying the associated credit card processing fee. This fee will be $2.50 for payments up to $71.50 and 3.5% for payments over $71.50.

The decision to implement this change comes as the City of Bloomington prepares for a tighter and more uncertain fiscal environment. In an effort to practice responsible stewardship, maintain transparency, and ensure long-term service stability, the City has been reviewing its expenses. This includes preparing for Indiana Senate Enrolled Act 1 and related legislation that will bring changes to Indiana's property and income tax structure.

As part of this broader review, the City has decided to update its long-standing credit card payment practice. In the past, the City has covered credit card processing fees for users using general funds or other public resources. However, moving forward, these costs will be passed on to the individual making the credit card transaction.

It is important to note that this change does not involve creating a new City fee or altering the amount owed by residents and customers. Instead, it simply means that individuals will now be responsible for covering the transaction cost associated with using a credit card as a form of payment. The City does not have control over these processing rates as they are set by third-party payment processors and card vendors.

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While this may come as an inconvenience to some residents and customers, there are still other payment options available that do not include credit card processing fees. These include paying by cash (exact change only), check, or money order either in-person at designated city locations or by mail.

For those who prefer to make in-person payments, they can do so at either City Hall located at 401 N Morton Street or at City of Bloomington Utilities located at 600 E Miller DR. It is important to note that credit and debit card payments made in-person will also be subject to the processing fee.

For those who choose to make payments by mail, the change only applies to credit card processing fees and does not affect the underlying amount owed to the City. Any processing fee will be displayed before the transaction is completed and will be shown on the payment receipt.

In conclusion, the City of Bloomington is making changes to its credit card payment practice in an effort to better manage expenses and prepare for future financial challenges. While this may result in additional costs for some individuals, there are still multiple payment options available that do not include credit card processing fees.

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