I received a bill for $0.86 from the City of San Jose. Seriously, some city official should calculate their costs for mailing a bill and processing the payment and determine whether certain sums are better left uncollected. The city sent their bill as presorted first-class mail. So, their postage costs will run between 32-36 cents. Let’s say the envelope and paper cost 1 cent each, so the city is already losing 34-38 cents from this transaction.

Next, I have to pay the bill. However, I have no interest in mailing an 86 cent check with a 42 cent stamp on the envelope. Sure, why quibble over a few cents, but the postage costs will increase my out-of-pocket expenses by 49%. So, I try to pay the 86 cents via my banks online payment system. Free postage! But, the bank requires a minimum payment of $1.00. So, I end up paying the extra 14 cents so that the bank can pick up the postage tab.

However, I suspect that my extra 14 cent payment will throw off the city’s accounting system. I’m betting that they will end up sending me a check for 14 cents, paying another 32-36 cents postage, and everyone will be happy.

Except, the city will have spent at least 68-76 cents trying to collect their damn 86 cents. I certainly hope their bill processing system is automated, else they’ll lose some more money entering the data into the system and cashing the check. In all likelihood, this will be a net loss transaction for them. I think the City of San Jose should have just written off this amount and engendered 86 cents worth of good will.