City News

Important Notice About Utility Bill Payments

July 18, 2025, City News

Dear Customer,

Recently we’ve been receiving a high number of calls about returned utility bill payments that were sent through customers’ bank bill pay services. Customers are reporting that their payments are being rejected by our bank due to a “No account” error.

Here’s why this is happening:

• In the past, when you used your bank’s bill pay service, your bank would send a physical check to the City through a third-party provider. When we received that physical check, we were able to tie it to your utility account.

• It appears that many banks are no longer issuing physical checks.

• If you use your bank’s bill pay service and your bank sends funds to our bank electronically, there is no way for our bank to identify which utility account the payment is intended for. As a result, these payments are being rejected and the funds returned to your bank account, potentially causing your utility account to become past due.

To avoid delays and ensure your payment is received on time, we strongly recommend:

• Paying your utility bill directly through the City’s website: https://sebastopol.merchanttransact.com

• Enrolling in automatic payments using a debit or credit card by submitting the City’s direct debit form at the above link.

• Of course, you may still mail or drop off a check at City Hall or pay there in person.

Remember that if you are paying by check

• The City does not receive or process your payment until a check arrives, whether through your bank’s bill paying service (if your bank is still using this procedure), or your own personal check.

• This delay can cause your account to remain unpaid and potentially become past due.

If you have experienced a return of funds when paying your utility bill through your bank’s automatic bill paying system, you will need to discuss this issue with your bank if you wish to continue using this feature. City staff are unable to contact our customers’ banks about individual accounts. Banks will not discuss or release information to us since we are not account holders.

More information may be found on the back of your water bill.
If you have questions, please call the City of Sebastopol at 707-823-7863.

Thank you for helping us process your payments efficiently.