Tuesday, August 10, 2010

Passing the credit card expense directly to the consumer

I wondered if some company would start passing the cost of credit card processing onto the consumer. I just paid a bill online and it appears, although I'm not sure, to be the first time that I've seen someone pass the credit card expense directly onto the consumer. I notice that they don't take Visa, does Visa refuse to participate?

Thanks for making your tuition payment through US Tuition, the easy way to pay.

To get started, just enter the name of your school and click the MAKE A PAYMENT button. Note: MasterCard®, Discover®, and American Express® cards are accepted for tuition payments.
Visa® does not participate in the tuition payment program at this time.

When you use this service, they charge a 2.8% "convenience" fee. In their FAQs, they say:

Does the School profit in any way from the fee charged?
No, the convenience fee is paid to USTuition LLC. The School receives no portion of the fee.

Will a parent who is entitled to a refund and who paid using USTuition LLC receive all or a portion of the convenience fee back?
No, the convenience fee is non-refundable.

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