"Convenience Fee"

[green2408]

Has anyone ever run into this? I decided to use Sallie Mae tuition pay plan for daughter's tuition next semester. I wanted to use a cc because then I would get the miles, however they charge a 3.5 percent "convenience fee" for using a cc. That's huge!! The rep for the tuition plan said the school gets that money. Anyone familiar with this? Sounds like a charge for using a credit card to me, but then I was thinking how ticketmaster charges a fee when you order online. Is that the same thing?

[hegemony]

is it a state supported institution?

[green2408]

No, a private thing for study abroad. But reading the Visa rules it seems like they can do this. Needless to say I didn't go for it, and instead am doing it by e-check. What a ripoff!!

[Joshys_mommy]

my college which is public does the same thing 3.5%

[webworm98]

If I understand you correctly.

 

From reading Visa and Mastercard rules

I think it is allowed because it outside of the U.S.

 

However, if they get state government money, they can pass on the credit card surcharge.

 

What gets me is that ticketmaster can charge your card a fee and Visa/Mastercard allows this.

[green2408]

Actually, the school's base is in Boston, but from reading the Visa rules, it seems like they can do it, except that it says that the fees cannot be collected for a third party, which may invalidate what they're doing bacause as I understand it, this Sallie Mae tuition plan is collecting the fee and then passing it back to the school. I'm still waiting for them to call me back and clarify. I think it's bogus even if it is OK by the rules.

[FlyingRon]

NOT LEGITIMATE.

 

Certain organizations (like government and such) are allowed to charge a conveince fee. It however must be a flat charge and NOT a percentage of the transaction amount.

[webworm98]

NOT LEGITIMATE.

 

Certain organizations (like government and such) are allowed to charge a conveince fee. It however must be a flat charge and NOT a percentage of the transaction amount.

 

Except in the case of paying your property taxes. They charge a percentage not a flat rate.

[BBQ123]

The college payment plans work this way:

 

College tuition is $10,000. College doesn't take credit cards. A third party will take your credit card payment and pass on money to the college. So third party charges 3.5% So you pay $10,350... to this third party. They keep $350 and pass $10,000 to the college.

 

It's like paying Western Union a fee to be a middleman in transferring money.