Councilmember Rue Landau introduced legislation “to establish restrictions on the collection of convenience or processing fees via online payment portals and provide for remedies.”
The legislation would regulate so-called “pay-to-pay” fees, which are assessed when a customer makes a payment through a particular online channel, according to the Consumer Financial Protection Bureau. Currently, these fees are only legal if a consumer agreed to them when they entered into a repayment agreement with a company. These fees are often referred to as “convenience” fees or “online processing” fees.
According to information provided by Landau’s office, the fees are assessed “as a penalty for choosing modern accessible payment methods, effectively charging consumers extra for the convenience of not mailing a check or appearing in person.”
The legislation does the following:
Free Alternative Mandate: Online portals must offer at least one payment option that is entirely free. A mail-in check or in-person cash option is not sufficient – the free option, typically an ACH/bank transfer, must live inside the same online portal.
Cost Justification Mandate: Requiring cost justification for any fees, essentially banning “convenience” fees that aren’t related to real costs, like credit card processing.
Fees must be backed by documentation of actual processing costs, upon request. Fees that materially exceed documented costs are deemed unfair or deceptive; businesses that want to keep charging must prove the fee is real.
Fee Transparency Mandate: Requiring up-front disclosure of any fees that will be charged, before the transaction occurs. Fees must be disclosed in total-price advertising and on the payment portal before the consumer commits. This means no surprise fees at the final screen.
The bill covers the following:
Fees charged on online payment portals, such as website for paying a bill electronically using that portal to pay by credit card, debit card, prepaid card, ACH/bank transfer, or digital wallet.
Fees charged by municipally-controlled payment portals, such as parking, courts, licenses and permits, and water.
Fees charged on privately-run online portals, such as rent, healthcare, tuition
It does not cover:
Ordinary credit card surcharges at an in-person point of sale (retail checkout), which is a distinct regulatory area governed by state and federal law.
Actual third-party processing costs, namely credit card processing fees, which are to be passed through at cost without markup.
State-regulated utilities (PECO, PGW). The Pa. Public Utilities Commission (PUC) has exclusive jurisdiction over utilities. Payment portal fees on utilities may be addressed further down the line by advocating to and working with the PUC.
Landau also introduced a resolution “authorizing the City Council Committee on Legislative Oversight to hold hearings examining the strategy and tactics deployed by the City of Philadelphia for crowd control during and following public events, as a result of reports of overly aggressive tactics used by the Philadelphia Police Department following the 2026 LGBTQ Pride festivities.”
The resolution cites video and eyewitness accounts of “physical confrontations, the use of mounted and motorcycle officers to disperse crowds, heavily barricaded streets, and officers employing force during arrests.” These incidents were widely shared on social media. The hearing will likely occur over the summer, rather than waiting for Council’s fall session to begin.
Thomas Calls for Hearings on Lack of Access to Algebra Courses
Councilmember Isaiah Thomas introduced a resolution “authorizing the Committee on Education to hold hearings examining the accessibility and equity of Algebra education curriculum in Philadelphia schools and the impact this has on accessibility to special admission high school schools.”
Citing Algebra as a “gateway course” and “predictor of on-time high school graduation,” the resolution references a 2023 Chalkbeat Philadelphia article that finds a potential correlation between socioeconomic status and algebra being offered at neighborhood middle schools.
Also, Algebra is a prerequisite for city special admission high schools; the lack of this course offering creates a further imbalance between students of different socioeconomic backgrounds across the city.
Young Introduces Hearing Resolution on SEPTA Safety
Councilmember Jeffrey Young introduced a resolution “authorizing the Committees on Transportation and Public Utilities and Public Safety to hold joint public hearings examining youth safety on and around SEPTA and identifying coordinated strategies to prevent violence, support young people, and protect all riders.”
There have been several well-documented incidents of violence involving young people on mass transit as of late, whether they be “victims, witnesses, bystanders, or participants,” while overall serious criminal incidents have declined over the same period.
The resolution calls for “a more comprehensive strategy (involving) sustained coordination among SEPTA, the City, and the Philadelphia school district.
This article is a part of Every Voice, Every Vote, a collaborative project managed by The Lenfest Institute for Journalism. The William Penn Foundation provides lead support for Every Voice, Every Vote in 2024 and 2025 with additional funding from The Lenfest Institute for Journalism, Comcast NBC Universal, The John S. and James L. Knight Foundation, Henry L. Kimelman Family Foundation, Judy and Peter Leone, Arctos Foundation, Wyncote Foundation, 25th Century Foundation, Dolfinger-McMahon Foundation, and Philadelphia Health Partnership. To learn more about the project and view a full list of supporters, visit www.everyvoice-everyvote.org. Editorial content is created independently of the project’s donors.
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