Utility Bill Payment Processing Fees

Published on September 15, 2026

Beginning October 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. Our goal is to continue providing dependable utility service while managing operating costs responsibly.

Other City Service Card Payment Transaction Fees

The transaction processing fee application is part of a citywide budget balancing strategy. Palo Alto City Council approved of the citywide card processing fee to maintain cost-effective public services across departments and ensure fairness for all customers. 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. Customers who prefer to avoid the credit and debit card processing fee can choose other payment options.

Learn More about the City Budget

Key Details of the Change for Utility Bill Payments

Effective Date: October 2026
The Fee: A non-refundable 2.75% service fee will be applied to all credit and debit card transactions. The maximum credit card payment is $100,000 per transaction.
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 processing fee will appear as separate transactions. One transaction will be the credit card service fee charged by our payment processor. 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 an 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 processing fee, and you will be removed from Auto Pay. If no action is taken, you will be unenrolled from Auto Pay in October of 2026.

How to Avoid Processing Fees

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

Go Online to MyCPAU at mycpau.cityofpaloalto.org/portal: Pay using a bank account.
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.
In Person: Pay by cash, check or money order at the Palo Alto City Hall, Revenue Collections counter.

To change your utility bill payment method from a credit or debit card to a bank account, please visit the City of Palo Alto Utilities MyCPAU customer account portal at mycpau.cityofpaloalto.org/portal. After logging in to MyCPAU, select Billing from the top menu, then choose Auto Pay from the menu on the left to update your payment method to a bank account. You may also email us at UtilitiesCustomerService@paloalto.gov or call our billing representatives at (650) 329-2161.