Title
Amending Title 9 of The Philadelphia Code, entitled "Regulation of Businesses, Trades and Professions," by adding a new Chapter 9-6900, entitled "Payment Convenience Fees," to establish restrictions on the collection of convenience or processing fees via online payment portals and provide for remedies; all under certain terms and conditions.
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THE COUNCIL OF THE CITY OF PHILADELPHIA HEREBY ORDAINS:
SECTION 1. Legislative Findings and Purpose.
The Council of the City of Philadelphia finds and declares as follows:
1) Pay-to-pay fees, also called convenience fees, payment processing fees, or service fees, are charges imposed on consumers solely as a condition of making a payment by electronic means through an online payment portal, including website, mobile application, or automated telephone payment systems, whether by credit card, debit card, prepaid card, ACH or bank transfer, or digital wallet. These fees generally range from a few dollars to fifteen dollars or more per transaction, as documented by the Consumer Financial Protection Bureau.
2) Philadelphia consumers bear an outsized share of this burden. Revenue collected by private online payment portal flows to out-of-state payment processors and none of the revenue benefits City services or Philadelphia residents. The City's water utility has charged $3.95 per online payment, which is approximately 40% above the national average.
3) Low-income consumers are particularly affected by the burden of junk fees like pay-to-pay fees. Low-income residents who rely on prepaid debit cards for utility allowances, and those who make multiple partial payments per month as funds become available, pay a larger share of their income in payment fees in order to pay required bills online.
4) Many expenses that currently require pay-to-pay fees are in captive payment contexts, including municipal fines and fees, court filings, parking violations, licenses and permits, rent, tuition, and ...
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