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City Of Troy Convenience Fees

Convenience Fees

Updated August 4, 2023
Beginning tentatively on September 18, 2023, there will be a convenience fee added for all debit or credit card payments. This fee is collected and retained by the third-party service provider (e.g. PayTrac)—not the City of Troy.

With this, any transaction made by a debit or credit card will be charged a service fee of 3% by the third-party service provider. If you would like to avoid the convenience fee, patrons can pay by cash or check in person or by mail.  

There is no fee for Automatic Clearing House (ACH) payments. ACH payments come directly from your checking account, and can be used for monthly Fitness Memberships. The letter in the upcoming Fall Recreation Guide and Fifty Forward states that there is a $1 fee with ACH payments, but we have received new information since printing that there is no fee. We apologize for any confusion. 

We will be sending out more information to Fitness Members as we confirm the dates and will provide all details on what you will need to do to update your billing information. Information will also be provided at Troy Community Center over the next coming weeks. Please refer back to this page for updates. 

We thank you for understanding and your cooperation in this matter is appreciated.

Resolution enacted by City Council on July 10, 2023, per Public Act 280 of 1995, MCL 129.221

FAQ

What is the Convenience Fee charges/costs at the Recreation Department/Community Center?
  • Any transaction made by a debit or credit card will be charged a service fee of 3%. This fee is set by the third-party service provider, PayTrac.
  • A letter in the Fall Recreation Guide and Fifty Forward states that there will be a $1 fee with Automatic Clearing House (ACH) payments. We have received new information since printing, and there is no fee with ACH payments.
If my class/program is cancelled, will I get a refund for the Convenience Fee?
You will receive a full refund of the program fee to your original form of payment, but not the convince fee. A convenience fee is non-refundable. The fee goes directly to the third-party provider, not the City of Troy.
What programs and services will this fee be applied towards?
This fee will be added to ANY credit/debit card transaction for all Recreation programs or services. There are no exceptions.
Will I have to pay this fee for online registration?
All online registration payments will have this fee applied since they must be made with a credit/debit card. You have the option to register in person with cash or check or by mail to avoid the fee.
What is a Convenience Fee?
A convenience fee is a fee charged by the third-party service provider so that Troy patrons can make payments through alternative methods (e.g. credit card) rather than by cash or check.
Where is this Convenience Fee going?
The fee is collected and retained by the third-party service provider (PayTrac), not the City of Troy.
How can I avoid the Fee?
  • You can avoid the fee by paying with cash or check in person or by mail.
  • For Fitness Members, you may pay via Automatic Clearing House (ACH) for monthly memberships or pay via cash or check for annual memberships.
Why not just include the Convenience Fee in the cost for service/program?
  • As a government entity we are not allowed to include the fee costs within our services/programs. It is also against (Federal/State) law as we must clearly communicate service fees at the point of sale.
  • Other businesses may be able to absorb the fees or increase pricing in order to cover them, but as a government entity, we cannot use tax dollars to cover these fees.
Why are we now charging for this?
  • We are making this change in order to be compliant with State/Federal law.
  • City Council enacted a resolution on July 10, 2023, per Public Act 280 of 1995, MCL 129.221 that permits the City of Troy to pass on Convenience Fees to the particular patrons that use online payment systems for city services. You can view the City code and charter at troymi.gov/citycharter.
What is the State law that requires/allows you to pass on the Convenience Fee to residents?
  • The Michigan Revenue Bond Act of 1933 provides municipalities the authority to adopt a rate ordinance for “user charges” on services that “serve a regulatory purpose rather than a revenue-raising purpose.”
  • A user charge per the Revenue Bond Act of 1933 summarizes that charges (e.g. Convenience Fees) can be assessed to a specific service, facility, or commodity by the public corporation on to the user who particularly benefit from the service.
  • In short, the ability to pay using online systems when alternative payment methods exist is now passed onto the individual user who uses the online system rather than the municipality using taxpayer dollars.