Convenience Charge when using credit card or paying online

[Suspicious-Teach8788]

i cant find my fvcking checkbook. the last time i used it was last april for taxes.

thank goodness im getting a refund this year.

Maybe they aren't getting paid directly by Visa. They might have an intermediary handling the transactions, adding to the cost. And the fee might not be 2%.

Regardless, you can easily get around this issue by writing a check, letting them debit it directly from your checking account, or having your bank mail them a check directly. So I don't really see a problem.

2% for a mom and pop donut shop maybe but for large volume stuff im sure they negotiate something. I highly doubt Amazon throws 2% away to the CC companies.

 

[AstroManLuca]

Maybe they aren't getting paid directly by Visa. They might have an intermediary handling the transactions, adding to the cost. And the fee might not be 2%.

Regardless, you can easily get around this issue by writing a check, letting them debit it directly from your checking account, or having your bank mail them a check directly. So I don't really see a problem.

Why would they choose to pay MORE than 2%?

 

[Vic Vega]

I understand that the state shouldn't pay VISA and Mastercard fees, but!

Why not? The State is entitled to use a privately owned financial service for free? Are you kidding?

 

[BoomerD]

Our public utility electric company doesn't accept on-line payments...you have to use a Western Union transfer...with a fee, of course. :|

 

[kranky]

Very common for any government agency to tack on a 2% or so charge for taking a credit/debit card, because they believe they can't eat the merchant fee that they would have to pay. It makes sense, because it does reduce their revenues, and why should they do that?

That being said, for whatever reason I can pay my municipal water bill and my local wage tax without a surcharge.

If my municipality charged a 2% fee, that would be fair. If they charged a flat $15, I would have to go to a township meeting and complain, since that's not justified. I'm OK with a surcharge that covers their processing costs.

 

[kranky]

Ticket Master's fees suck too! How is it a convenience fee for me printing out my own tickets!?

You're looking at the word "convenience" from your point of view, not Ticketmaster's. 🙂

 

[QueBert]

Very common for any government agency to tack on a 2% or so charge for taking a credit/debit card, because they believe they can't eat the merchant fee that they would have to pay. It makes sense, because it does reduce their revenues, and why should they do that?

That being said, for whatever reason I can pay my municipal water bill and my local wage tax without a surcharge.

If my municipality charged a 2% fee, that would be fair. If they charged a flat $15, I would have to go to a township meeting and complain, since that's not justified. I'm OK with a surcharge that covers their processing costs.

A Business merchant account typically comes with a monthly fee + a per transaction fee + a fat rate percentage fee. Also you have web hosting costs + needing a web master. I'm not saying $15's justified, but it's not as simple as saying "company X only pays Visa 2.1% + .22 cents on a transfer!"