Frequently Asked Questions (FAQ)

Credit Cards

Question:
Is it legal for municipalities to use credit cards?

Answer:
There are two public acts that allow municipalities to use credit cards for procurement (PA 266 of 1995-MCL 129.241 et seq) and for accepting payments (PA 280 of 1995-MCL 129.221 et seq). Both require some type of action by the local legislative body. To use credit cards for procurement, a written policy is required. The Act lists what must be included in the policy. An authorizing Resolution is required to accept payments by credit cards. There are other requirements and restrictions as well. Sample policies are available on our web site.