Beginning Tuesday, Jan. 20, 2026, the City of Loveland will implement a 2.85% service fee on credit and debit card transactions to offset processing costs incurred when customers use cards to pay for various City products, programs, and services.

Previously, the City budget absorbed credit and debit card processing costs, also known as swipe fees. Under the new structure, those choosing card payments will cover their cost directly. This change aligns Loveland with industry standards and reflects a common practice among Colorado municipalities.

The service fee applies specifically to payment card transactions, and examples of services and departments include, but are not limited to:

• City Clerk’s - Licenses and records request payments;
• City of Loveland Transit (COLT) - Rider fares;
• Development Services - Building and planning fees such as permits, licenses, and inspections;
• Loveland Burial Park and Lakeside Cemetery – plots, burials, records;
• Loveland Police Department and Municipal Court - Tickets and records;
• Loveland Public Library - Room rentals, project materials;
• Northern Colorado Regional Airport - Badge fees, parking fees;
• Loveland Recycling Center – Various in-person recycling costs; and,
• Public Works - Dumpster and roll-off rentals, right-of-way permits, concrete.

City of Loveland Utilities is slated to implement the change at a later date. Impacts to Parks and Recreation, Loveland Museum, Rialto Theater and Visit Loveland are under evaluation.

The payment card fee increase was adopted during City Council on Oct. 21, 2025, as part of the 2026 rates and fee update.  

Visit the City of Loveland website for information about programs, products and services.

Credit & Debit Card Service Fee – Frequently Asked Questions

Why is the City charging a service fee for card payments?
When a customer chooses to pay by credit or debit card, the City is charged processing fees by payment providers. The service fee helps offset those costs so they are not passed on to all taxpayers.

What payments does the service fee apply to?
The service fee applies to credit and debit card payments made: In person, online, and over the phone.

Does the service fee apply to all payment types?
No. The service fee does not apply to: Cash, check, & ACH / electronic bank payments. No-fee options are available. Check with the payee--the department to which money is to be paid--for information related to their specific no-fee payment options.  

How much is the service fee?
The service fee is 2.85% of the payment amount for card transactions.

Who receives the service fee?
Depending on the department and payment system:

• In some cases, the payment processor charges the fee directly to the customer.
• In other cases, the City collects the fee and uses it to pay the card processing costs.

In all cases, the fee is intended to recover processing costs — the City does not profit from the fee.

Is this fee allowed under Colorado law?
Yes. As a home-rule municipality Loveland is permitted to impose fees and surcharges provided such charges comply with the Colorado constitution (e.g. TABOR) and reflect the cost of service. In addition to its home-rule authority, C.R.S. § 29-11.5-103—which applies to municipalities like Loveland—allows Colorado municipalities to charge a service or convenience fee for alternative payment methods, as long as the fee reflects actual processing costs and follows payment provider rules. 

Why is the fee applied to debit cards too?
Debit card payments also incur processing costs. The service fee applies when a customer chooses to use a card, regardless of whether it is credit or debit.

Why doesn’t the City just absorb the cost?
Absorbing card processing costs would shift those expenses to all taxpayers, including residents who do not use card payments. The service fee ensures that only users of card payment services cover those costs.

Can I avoid the service fee?
Yes. You can avoid the service fee by paying with cash, a check, or via ACH / bank transfer. Check with the payee--the department to which money is to be paid--for information related to their specific no-fee payment options.  

Where can I get more information about payment options or other fees?
If you have questions about payment options or other fees, please contact the department you are paying.