When Visa launched their Tax Payment Program in November 2008, part of the new rules require payment processors and third party payment service providers to mandatorilyoffer an “incentive” $3.95 (or less) convenience fee on tax payments made with Visa debit cards, regardless of the size of the transaction.  If you or your vendor are assessing a “convenience fee” on tax payments made with credit or debit cards this is required both for online and over the counter (OTC) payments made in your offices.

We have setup dozens of cities and counties for tax payments with convenience fees, that just completed their annual tax collection period.  Visa debit cards exceeded all other forms of payment ranging from 50-70% of all transactions.

Clearly paying a $500 tax bill with a debit card at $3.95 vs. with a credit card for $12.50 or more (2.5%) is an important factor for your constituents that are choosing to use their cards for tax payments. 

You should consider not only the compliance issues but the trends in card usage by your customers if you or your vendor presently does not offer a Visa debit card solution for $3.95 or less.