Archive for the ‘Visa Tax Payment Program’ Category

Many Tax collector websites have verbiage like this

In order to comply with terms of the credit card merchant agreement, the Milwaukee County Treasurer’s Office cannot accept credit card charges at the counter. All credit card charges must be processed either online or by calling1-877-542-6074

OR like this

Due to VISA regulations, our office can only accept VISA debit or credit cards for online and over the phone tax payments. We cannot accept VISA cards for any over-the-counter transaction. Click here to view the media release regarding VISA cards.

These statements are not accurate.  In fact in Visa’s latest operating rules dated October 2010 page  554 it states

In the U.S. Region, a Tax Payment Program Transaction may be processed in either a Card-Present Environment or a Card-Absent Environment.

AND

In the U.S. Region, a Tax Payment Program Merchant may charge a Convenience Fee for processing a Tax Payment Transaction

AND

The Convenience Fee for a Visa Debit Card Transaction must be a fixed or flat amount not exceeding US $3.95 per transaction, regardless of the tax payment amount.

AND

In the U.S. Region, a Tax Payment Program Merchant that charges a Convenience Fee must process the Convenience Fee amount as a separate Transaction.

In fact many of the same vendors that have advised their customers they cannot accept Visa over-the-counter do not comply with Visa’s separate convenience fee transaction and $3.95 Visa debit card convenience fee rules for their customers online (Card Absent) payments.

Pretty ironic that these vendors are advising their customers not to accept Visa and even worse any credit cards at all, for their card present (over-the-counter) transactions.

If you want to accept Visa over-the-counter and need more confirmation of these rules contact me at jplunkett@governmentpaymentprocessing.com and I will put you in touch with the Visa Vice President of Government Acceptance.

Jim

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