Senate favors bill on card payments

A bill aimed at clarifying that municipalities may accept payments through debit or credit cards won the Senate’s approval Wednesday.

Senate Bill 98, by Sen. John Cooper, R-Jonesboro, was approved 33-1 and sent to the House.

Cooper’s bill would allow municipalities to enter into contracts with credit card companies. It also would allow a municipality to charge a transaction fee on payments by card.

Cooper said many people pay their bills with debit and credit cards and city officials don’t know if the law allows them to accept payments by these cards.

Sen. Jim Hickey, R-Texarkana, who was the lone no vote, suggested the bill should be changed to place a limit on the transaction fees that cities may charge.

He said he is worried about cities charging astronomical transaction fees.

Sen. Alan Clark, R-Lonsdale, said he had been assured there are safeguards to keep cities from charging too much for transaction fees.

“We don’t want this to become a profit center for cities,” he said. Cooper said he would clarify his bill to make it clear that the transaction fee only covers costs.

Arkansas Municipal League Executive Director Mark Hayes told a Senate committee Tuesday that the fees would be subject to regulations in the credit card industry.