Visa’s New Tax Rule
June 9th, 2009 | 
Author: 
There is much information and misinformation circulating regarding Visa’s New Tax Payment Program that I would like to comment on:
The new Tax Payment Program effective October 4, 2008 replaces the old Visa Tax pilot program which has concluded.
Registration in the new program is REQUIRED if you or your third party provider is assessing a fee back to citizens on Tax Payments made with a Visa Card.
The Program applies to Online as well as In-Office, Over the Phone and In the Mail transactions.
Variable (percentage based) fees are allowed Except on Visa Debit cards where a fixed fee ONLY must be applied and must not be greater than $3.95 (Visa has established a new interchange rate of $2.50 for payment processors).
The convenience fee transaction and the County/City Fee transaction MUST be submitted as separate transactions.
Most if not all Third Party Service Providers DO NOT comply with these rules. Make sure when you are considering implementing a Tax Payment Program that you ask your solutions provider about the above requirements.
IF YOU WANT A COPY Of Visa’s new Tax Payment Program rules please Click Here
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I looked through your website and I just have a few comments to make on the Visa Tax Payment Program. I didn’t notice any mention of the types of transactions that can be processed under this program. It is a concern because there are merchants out there that are in violation of the Visa Operating Regulations. An example is where a merchant is charging a surcharge at the Department of Motor Vehicles for renewal of license. Visa does not allow a fee to be charged on a face to face transaction under normal transactions. Visa also doesn’t allow a fee to be charged for this type of government payment under its Tax Payment Program. It clearly states which payments are not eligible under this program.
I don’t know if you make potential merchants aware of this but you should.