Starting June 1, Minneapolis residents who put their city utility bills on a credit card will see a little extra sting on the statement. The city is rolling out a 2.35 percent processing fee on credit card payments for utility bills, which works out to about $2.35 on a $100 bill. City officials say the fee covers card processing costs the city used to absorb and that the city itself does not keep the extra money. Anyone who wants to dodge the new charge can switch payment methods before June 1.
What is changing and when
The city explains the move in a public notice that states, "Starting June 1, credit card payments will have a 2.35% processing fee," according to the City of Minneapolis. The notice says the city previously covered this expense and reiterates that "The City does not keep the fee." To keep the math simple, the example given is a $100 utility bill that would carry a $2.35 credit card fee. The notice urges customers to change their payment methods ahead of the June 1 switch if they want to avoid paying extra.
How Minneapolis fits into the regional trend
Minneapolis is not venturing out alone on this one. Around the metro, other municipalities have already started shifting card processing costs to the people paying the bills. The City of Edina began adding a 3 percent convenience fee to credit and debit card utility payments on September 1, 2025, according to the city’s utility billing page. Nearby St. Louis Park adopted a similar 3% surcharge earlier this year. Local officials say these convenience fees are meant to cover rising processing costs, not pad city budgets.
How to skip the surcharge
For residents who prefer not to pay extra just to swipe or tap, the city lists several no-fee alternatives. You can pay by check, whether mailed, electronic, or in person. You can also set up automatic payments from a checking or savings account, use your bank’s online bill pay service, or pay in cash at select retail partners such as CVS and Walgreens, according to the city’s payment guidance. Those choices work for both one-time payments and recurring autopay, and they keep your total from creeping up simply because you used a credit card. If you like racking up card rewards, the city suggests using bank bill pay or an ACH or autopay pulled from your bank account instead of putting the bill directly on a credit card.
Questions, help, and next steps
For anyone confused by the change or needing help switching payment methods, the city has posted the announcement on its official Facebook page and linked to the full notice. The post includes contact details and steps for updating how you pay. In that post, the city lists Utility Billing contact info as [email protected] and 612-673-1114, according to the City of Minneapolis Government on Facebook. Residents who want to avoid the new processing charge are encouraged to move away from card payments before June 1 or use one of the no-fee options already available.
