Utility Bill Payment Processing Fees

Published on July 15, 2026

Beginning September 15, 2026, the City of Palo Alto Utilities (CPAU) will transition the cost of credit and debit card processing fees for utility bill payments to the cardholder. Like many municipalities and utilities, we are implementing this change so processing costs are paid by those who choose to use card payments. This fee will be added to the total amount charged when a credit or debit card is used and is intended to offset a portion of the costs charged by credit card companies and payment processors. Our goal is to continue providing dependable utility service while managing operating costs responsibly. 

Key Details of the Change:

• Effective Date: September 15, 2026
• The Fee: A non-refundable 2.75% service fee will be applied to all credit and debit card transactions.
• Details: This fee is charged directly by our third-party payment processor and is non-refundable. Neither the City of Palo Alto nor CPAU keeps any portion of this fee. The utility amount and credit card service fee will appear as a separate transaction. One transaction will be the credit card service fee charged by our payment processor, Elavon. The other will be the utility payment amount made to the City of Palo Alto.

Auto-Pay Customers: If you are currently enrolled in auto-pay for utility bills using a credit or debit card, you will need to accept the updated terms & conditions of automatic payments and opt-in. A follow-up email notification will be sent at the beginning of August with instructions on how to accept and opt-in to the service fee, allowing you to continue using auto-pay with a credit card without any further action. The email will also include an option to decline the service fee and you will be removed from autopay. If no action is taken, you will be unenrolled from Auto Pay on September 15, 2026.

How to Avoid Processing Fees:

We offer several free payment methods so you can avoid this additional charge.

1. Bank Account (Electronic Check/ACH): Pay securely online with no added fees.
2. By Mail: Send a personal check, cashier’s check, or money order to Palo Alto City Hall, Revenue Collections, 250 Hamilton Avenue, Palo Alto, CA 94301.
3. In Person: Pay by cash, check or money order at the Palo Alto City Hall, Revenue Collections counter.

If you would like to opt-in to automatic payments, or switch to a fee-free payment method, please visit the City of Palo Alto Utilities MyCPAU customer account portal at mycpau.cityofpaloalto.org.  After logging in to MyCPAU, click Billing in the top menu, then select Auto Pay from the menu on the left. You may also email us at UtilitiesCustomerService@paloalto.gov or call our billing representatives at (650) 329-2161.