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Bill

H 265

An act relating to prohibiting the imposition of convenience fees on online municipal utility payments

2025-2026 Regular Session Introduced by Troy Headrick

Prohibits Vermont municipalities from charging convenience fees on online utility bill payments, shifting payment processing costs from residents to municipalities.

Read first time and referred to the Committee on Energy and Digital Infrastructure
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Bill Summary · H 265

Legislative bill overview

H 265 prohibits Vermont municipalities from charging convenience fees when residents pay utility bills online. The bill restricts what fees municipalities can impose for digital payment processing, potentially standardizing utility payment costs across the state.

Why is this important

Many households now rely on online bill payment for convenience, and convenience fees can range from $2-5 per transaction, creating a financial barrier for regular bill payers and low-income households. This bill addresses whether municipalities should be able to pass payment processing costs to consumers or absorb them as part of service delivery.

Potential points of contention

  • Municipal revenue impact: Towns rely on convenience fees to offset payment processing costs; eliminating them may require alternative funding sources or service reductions
  • Payment processor costs are real: Credit card and digital payment companies do charge merchants; the question is who bears this cost (municipality or resident)
  • Scope questions: Does this apply only to municipal utilities or all municipal online payments? Does it affect third-party payment platforms municipalities contract with?

Compiled from official sources — confirm details with the bill’s official record.

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