Elkhart City Council Approves Credit Card Fees
The city will begin collecting processing fees from residents starting in 2027 to help cover rising transaction costs.
Updated on Oct. 28, 2026 in Credit Cards
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Elkhart residents using credit cards for city payments will soon face new transaction charges. The City Council unanimously approved an ordinance to pass credit card processing fees to users to help offset rising municipal costs.
Why it matters
The city aims to minimize the financial impact of transaction fees on its general budget to help keep local taxes low. By recovering these costs, the city plans to manage the growing expense of electronic payment processing.
The city spent $272,000 on processing fees through September 2026, significantly outpacing the $180,000 total spent in 2025. This new ordinance projects $288,000 in annual revenue to offset these expenses.
The players
Elkhart City Council
This is the legislative body responsible for governing the city and managing its municipal budget and ordinances.
The details
The city will evaluate technical systems through the end of 2026 to choose between a $3 convenience fee or recouping the exact processing percentage per transaction. Non-card payment methods will remain exempt from these additional fees.
Timeline
The original ordinance was established in 2007.
The city incurred $272,000 in costs between January 2026 and September 2026.
The City Council unanimously approved the new ordinance on October 19, 2026.
System evaluations for fee implementation will continue through December 2026.
The new fee structure is scheduled to take effect at the beginning of 2027.
Market Dynamics
This move mirrors a broader trend of local governments adopting fee-sharing structures to comply with Indiana state law regarding payment processing. By shifting costs, the city positions its budget to better withstand the rising volume of electronic transactions in the public sector.
Residents should expect to see a $3 fee or an additional percentage added to their city payments starting in 2027. To avoid these costs, households may opt to use non-card payment methods, which remain exempt from the new fee structure.
The takeaway
Cities across the region are increasingly passing electronic transaction costs to users to preserve taxpayer funds. Residents can minimize their out-of-pocket expenses by confirming which payment methods avoid these new processing fees.
What happens next
The city will complete system evaluations by the end of 2026, with the new fee structure set to begin at the start of 2027.
Further reading
Learn more about local fiscal policies on the Credit Cards page.
More information
View the City Controller office and budget information for further details.
Source note: This article includes information reported by The Elkhart Truth.
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