City of Salem Now Accepting Credit, Debit Card Payments

The City gains efficiency because the United States Postal Service handles U.S. Bank’s Lockbox mail items as high priority.

Salem City Hall entrance Photo By: Tim King

(SALEM) - The City of Salem is now using U.S. Bank`s Lockbox Service to process payments for parking permits, parking tickets, court payments, miscellaneous accounts receivable invoices and utility bill payments received in the mail.

In addition, those who mail payments will be able to make their payments using either MasterCard or Visa credit and debit cards.

The changes will provide customers with more payment flexibility and enhance the efficiency of processing payment.

The city is working to add American Express and Discover card payment acceptance in the future.

Customers will see changes on their bill payment forms for these three systems so they can indicate whether they wish to make a credit or debit card payment.

The city is also sending out revised return mail envelopes to direct payments to the new post office box associated with this service.

Payments will be sent to a P.O. Box in Portland, from which U.S. Bank retrieves the mail beginning at midnight each day.

The payments are processed by U.S. Bank throughout the day and deposited on the same day into the City`s checking account.

Salem Finance Director Tony Mounts said that after careful review, the city determined that using the U.S. Bank lockbox would provide a variety of benefits including reduction in processing time, significant cost savings and new payment options said Tony Mounts, Salem Finance Director.

Lockbox payments will be deposited on the date of receipt, so the city will have access to the funds sooner and will be able to invest earlier to increase interest income for taxpayers.

Mounts added that although the city is still working through some complex issues relating to initiation of these payments and the associated costs, card acceptance capabilities for most city services, fees, and fines should be phased in over the next year.

In addition to the ability to accept payments made by debit or credit cards, the city is also moving toward acceptance of payments through the city`s Web site Mounts said.

The projects, which required formal competitive procurement processes, were identified as a high citywide priority by the Salem City Council during recent budget sessions.

The City is NOT yet able to accept credit or debit card payments in city offices or for other types of payments such as planning and development fees, parking tickets, or court payments.