New credit card fees are being introduced for parking meters in San Diego.
San Diego has approved new credit card transaction fees for parking meters to tackle a $300 million budget deficit. The measures include raising meter rates to $2.50 per hour and imposing a 3% fee on credit card transactions. City officials estimate this could generate $750,000 annually to preserve public services. Additionally, plans are in place to expand parking fees to popular areas like Balboa Park and the San Diego Zoo. Increased fines for parking violations related to new regulations are also part of this revenue-generating strategy.
San Diego has announced the introduction of new credit card transaction fees at parking meters as part of efforts to address a significant budget deficit estimated at around $300 million. The City Council has approved measures that will increase parking meter rates to $2.50 per hour and implement a new fee structure for drivers opting to pay via credit card.
The forthcoming credit card transaction fee will be approximately 3% of the transaction amount. City officials estimate that this new charge could generate about $1 million annually, which aims to help prevent service cuts at public libraries and recreation centers. However, Mayor Todd Gloria has revised this estimate down to $750,000, citing anticipated delays in rolling out the new fees.
The decision to pass credit card fees onto drivers represents a significant policy shift, as previously, the city absorbed these costs. In fiscal year 2025, the city incurred nearly $1 million in credit card fees when meter rates were lower. As part of related efforts to enhance parking revenue, the city has also introduced charges for parking on Sundays, instituted $10-per-hour fees at meters located near Petco Park during events, and rolled out additional metered parking in various neighborhoods across the city.
Plans are also underway to expand parking fees at the San Diego Zoo and Balboa Park, which are in the final stages of negotiation. Discussions are ongoing between the city and the state Coastal Commission regarding the implementation of parking fees at Mission Bay Park and in city beach lots.
City Attorney Heather Ferbert has confirmed that transferring credit card fees to drivers complies with Proposition 26, ensuring that the city remains within legal boundaries. The introduction of new parking regulations also includes increased fines for parking violations pertaining to the new “daylighting” law, which prohibits parking near intersections. The fines for these violations have escalated from $77.50 to $117.
Since the implementation of the daylighting law, the city has issued a substantial number of parking citations, with fines expected to yield $850,000 for the budget. These measures are part of a broader strategy to enhance city revenues to mitigate the financial challenges faced after a proposed tax increase failed.
San Diego’s budget issues stem from a variety of factors, culminating in a deficit that has prompted the city to reconsider various fees, permits, and fines. In recent months, the city has enacted significant increases across several areas in hopes of stabilizing the budget. The latest parking meter adjustments and the imposition of credit card fees are part of a continuous effort to generate necessary revenue without further escalating the budget shortfall.
As these changes take effect, residents and visitors to San Diego should expect adjustments in their parking payment options and related costs, which are aimed at supporting public services during challenging financial times.
San Diego City Council Approves $2.15 Billion Budget
San Diego City Council Approves Changes to Parking Fees
San Diego City Council Approves Paid Parking on Sundays
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