Archive for the ‘Municipal Tax Collection’ Category

When Visa and MasterCard changed their rules in 2008, the immediate impact was that cities and counties, including tax collectors and utility districts, could now accept credit cards in their offices at no cost, when their constituents came in and wanted to pay.  As technology was developed for this, a normal extension of that technology was to develop a simple connection to city and county property tax and utility districts databases so that users could go online and search, view and pay bills online.  Whether the users where city/county employees behind the counter or constituents at home.

At least one company, Government Payment Processing has developed a system that is standardized and allows cities and counties to implement this “Bill Presentment and Payment” technology at no cost with credit, debit and ACH and eCheck transactions also at no cost.  This functionality has always cost cities and counties a substantial annual amount and has been traditionally provided by municipal software companies.

By offering this at no cost, now, any city or county that wants to expand their online payments capabilities with bill search, view and payment can do so.  This represents a radical change and a significant opportunity for most cities and counties which do not have this capability.  If you would like some more information on this please contact me directly.

Jim Plunkett

No less than a half a dozen tax collectors in Florida have announced they will no longer accept Visa  since May. Their credit card processor has told them Visa will no longer allow them to accept credit cards and assess a fee back to their citizens.  Visa DOES allow a convenience fee to be assessed back but has specific regulations for both online and in-office transactions.

For ONLINE transactions, that are not tax payments, Visa CAN be accepted with a convenience fe assessed back to the citizen as long as it is a fixed fee regardless of the transaction amount and it is assessed by the city or county …not a third party.  This of course negates about 98% of the online payment scenarios in place because they are run by third parties. Since the convenience fee also must be a FIXED fee and the transaction costs assessed by MasterCard and Visa are percentage based, having a fixed fee is only feasible when you have a good handle on the average transaction amount…like utility bills.

For in office tax payments, Visa can also be accepted with a convenience fee assesed to the citizen, however, certain conditions must be met.  First, the convenience fee must be submitted and processed as a separate transaction and secondly, Visa consumer debit cards must have a “different” incentive convenience fee.  To do this automatically requires an investment in technology that most companies have not and may not be wiling to take.

To add to this conundrum, Tax Collectors in Florida often collect DMV payments in their offices and Visa presently does not allow a convenience fee to be assessed on these payments.

The bottom line is Visa does allow a convenience fee under certain conditions.  these conditions may require special technology from uour solutions provider…make sure you ask.

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

County offers five methods to pay property taxes

Tax OfficeThe Douglas County Treasurer’s Office mailed out property tax statements this January that can be paid in person; by mail, drop box, or telephone; or online.

Tax collectors are now, more than ever, seeking to provide as many alternatives for payment of property taxes as possible to increase their collections. With changes in credit card rules allowing cities and counties to now accept credit

cards at no cost to them, many municipalities cannot afford not to implement credit card acceptance in their offices any longer.