(50 ILCS 345/20)
Election by local governmental entities to accept credit cards.
(a) The decision whether to accept credit card payments for any particular
type of obligation shall be made by
the governing body of the local governmental entity that has general
discretionary authority over the manner of
acceptance of payments.
The governing body may adopt
reasonable rules governing the manner of acceptance of payments by credit card.
Except as provided in subsection (b) of Section 20-25 of the Property Tax Code, no decision to accept credit card payments under this Act shall be made until
the governing body has determined, following a public hearing held not sooner
than 10 nor later
than 30 days following public notice of the hearing, that the acceptance of
credit card payments for the types of authorized obligations specified in the
public notice is in the best interests of the citizens and governmental
administration of the local governmental entity or community college
and of the students and taxpayers thereof.
(b) The governing body of the entity accepting payment by credit card may
enter into agreements with one or more financial institutions
or other service providers to facilitate the acceptance and processing of
credit card payments.
Such agreements shall identify the specific services to be provided,
an itemized list of the fees charged, and the means by which each such fee
shall be paid. Such agreements may include a discount fee to cover the costs
interchange, assessments and authorizations, a per item processing fee for the
service provider, and any other fee, including a payment of a surcharge or
convenience fee, that may be applicable to specific circumstances.
Any agreement for
acceptance of payments by credit cards may be canceled by the governmental
entity upon giving reasonable notice of intent to cancel.
(c) An entity accepting payments by credit card may pay amounts due
a financial institution or other service provider by (i) paying the
institution or other service provider upon
of an invoice or (ii) allowing the financial institution or other service
provider to withhold the amount of
the fees from the credit card payment. A discount or processing fee may be
authorized whenever the governing body of the entity determines that any
reduction of revenue resulting from the discount or processing fee will be in
interest of the entity.
Items that may be considered in making a determination to authorize the payment
of fees or the acceptance of a discount include, but are not limited to,
improved governmental cash flows, reduction of governmental overhead, improved
governmental financial security,
a combination of these items, and the benefit of increased public convenience.
No payment to or withheld by a financial institution or other service provider
may exceed the amounts authorized under subsection (b) of Section 25.
(d) Unless specifically prohibited by an ordinance or rule adopted by the
governing body of the local governmental entity, a person may pay multiple tax
bills in a single transaction.
(Source: P.A. 96-1248, eff. 7-23-10.)