Tuesday, March 14th, 2023
Celina affected by tech bank failure
City stops accepting credit card payments
By William Kincaid
CELINA - The city of Celina is feeling the fallout from the failure of a tech industry-centered bank on the West Coast.
City officials on Monday stopped accepting credit card payments for utility bills after learning its third party processor, Payment Service Network Inc. of Madison, Wisconsin, has halted reimbursements to the city, mayor Jeff Hazel said at the regular city council meeting.
Hazel said PSN is affiliated with Silicon Valley Bank which was seized by the U.S. government after collapsing on Friday.
PSN processes online payments for income taxes and utility bills for electric, water and wastewater services, as well as any fees for engineering services such as building permits and park and recreation fees for children's sports programs.
"We have not gotten payment Friday or today so we feel like it's in the best interest of the community that we suspend accepting credit card payments until that is resolved," Hazel said. "Not saying forever, we just think we want to safeguard."
Nearly $30,000 in credit card payments have not been reimbursed to the city through PSN, Hazel added.
"They are a third party. It is not PSN. They've been a great company to work with but because they've been associated a little bit on the Silicon, which is a tech sector, we need to see how that shakes out," he said.
Councilman Eric Lochtefeld asked if PSN indicated when service will be restored.
"They didn't give a specific timeframe," said city auditor Brooke Shinn. "It was just kind of a notification that they are trying to get set up with a different financial institution so they can use a different … way to transmit those funds."
Utility payments can still be made with cash, check or through monthly automatic withdrawal from bank accounts.
"I don't like taking this convenience away from customers but at the end of the day the city still has to receive funds for what's expended in utilities," Hazel said. "We're required by law to collect."
"I would think the cardholders are understanding of that," councilman June Scott said.
