After presenting to the American Public Treasurers, at their annual meeting, it occurred to me that there was one question that consistently arises in my presentations to Finance Officers, Treasurers and Tax Collectors. The question revolves around you being inundated with emails promoting free credit card solutions for your office. You understand there are new credit card company rules that must be followed if you decide to accept credit cards at no cost and have a convenience fee, however you are getting conflicting information from vendors regarding what’s allowed I have a presentation slide that has 6 questions you should ask third party vendors so that you can make sure you are into a relationship with a vendor that is looking out for your best interests:
1) Can I accept Visa?
This is what the answer should be…Visa can only be offered through a third party vendor, with a convenience fee, for tax payments.
Visa’s convenience fee rules (Section 5.2.E.1.b - page 279) prohibit a third party from assessing a convenience fee. This applies to online and in-office transactions. Visa only allows a convenience fee to be assessed by a third party for tax payments (Section 5.2E2 same page)
2) I am accepting Tax Payments. Do you submit and process the convenience fee as separate transaction from our tax payment with two receipts (online and in-office) and two signature lines for face to face transactions as required by Visa? Also do you automatically identify a Visa consumer debit card when it is swiped in my office or keyed in by a citizen online and assess a fee not to exceed $3.95 as required by Visa? (See Section 5.2.E.2.d page 280 & 5.2.E.2.c page 279)
3) Can I void transactions immediately in my office without having to contact you? You will absolutely want to be able to do this
4) Are my funds directly deposited to my account without being handled by you?
5) Is all of my equipment, setup and support provided at no cost?
6) Are you a Level 1 PCI Certified (Data Security) Third Party Service Provider?
I hope this helps you when you are dealing with third party vendors and the continually changing credit card company convenience fee rules. If you are interested in getting more information on our no cost solution please contact me directly:
August 5th, 2009 | 
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