I am a student at the University of Arkansas. I recently recieved an email about a new policey that was going into effect:
"Credit/Debit Card Convenience Fee. The University of Arkansas is committed to providing students and their families with a range of options for paying for educational expenses. Payments may be made using cash, checks, certified funds or credit/debit cards. While students find that using credit/debit cards for payments is a convenient choice, that method is becoming prohibitively expensive to the University. In order to continue to provide a secure payment platform to accept credit/debit card payments, the University must charge a convenience fee of 1.7%. The funds collected will be used to offset existing expenses and will not result in any new revenue to the University. "
The University of Arkansas accepts Visa, Mastercard, AMEX, or Discover online. They accept checks or cards in person and do not charge a convenience fee. If you try to pay in person with a credit card, they point you to a computer to pay online and get charged the "convenience fee".
From reading the merchent rules it looks like it is definately against Visa's policey of a flat rate convenience charge. Is it against Mastercard or any of the other cards merchent agreement as well? Does the University of Arkansas get special treatment because they are a public university?
Full Version: Can Universitys charge Convenience fees?
Tons of threads about this here. It doesn't violate the agreement, as they use a third party processor to accept payment. Visa usually pulls out when they do this.
yup they can
QUOTE (cljohnr @ Jul 27 2009, 02:14 PM) 
Tons of threads about this here. It doesn't violate the agreement, as they use a third party processor to accept payment. Visa usually pulls out when they do this.
Well dont all merchants use a third party processor to accept payments?
QUOTE (webworm98 @ Jul 27 2009, 02:21 PM)
QUOTE (cljohnr @ Jul 27 2009, 02:14 PM)
Tons of threads about this here. It doesn't violate the agreement, as they use a third party processor to accept payment. Visa usually pulls out when they do this.
Well dont all merchants use a third party processor to accept payments?What's the difference between a surcharge and a cash discount?
QUOTE (Phred @ Jul 27 2009, 10:34 AM)
I am a student at the University of Arkansas. I recently recieved an email about a new policey that was going into effect:
"Credit/Debit Card Convenience Fee. The University of Arkansas is committed to providing students and their families with a range of options for paying for educational expenses. Payments may be made using cash, checks, certified funds or credit/debit cards. While students find that using credit/debit cards for payments is a convenient choice, that method is becoming prohibitively expensive to the University. In order to continue to provide a secure payment platform to accept credit/debit card payments, the University must charge a convenience fee of 1.7%. The funds collected will be used to offset existing expenses and will not result in any new revenue to the University. "
The University of Arkansas accepts Visa, Mastercard, AMEX, or Discover online. They accept checks or cards in person and do not charge a convenience fee. If you try to pay in person with a credit card, they point you to a computer to pay online and get charged the "convenience fee".
From reading the merchent rules it looks like it is definately against Visa's policey of a flat rate convenience charge. Is it against Mastercard or any of the other cards merchent agreement as well? Does the University of Arkansas get special treatment because they are a public university?
"Credit/Debit Card Convenience Fee. The University of Arkansas is committed to providing students and their families with a range of options for paying for educational expenses. Payments may be made using cash, checks, certified funds or credit/debit cards. While students find that using credit/debit cards for payments is a convenient choice, that method is becoming prohibitively expensive to the University. In order to continue to provide a secure payment platform to accept credit/debit card payments, the University must charge a convenience fee of 1.7%. The funds collected will be used to offset existing expenses and will not result in any new revenue to the University. "
The University of Arkansas accepts Visa, Mastercard, AMEX, or Discover online. They accept checks or cards in person and do not charge a convenience fee. If you try to pay in person with a credit card, they point you to a computer to pay online and get charged the "convenience fee".
From reading the merchent rules it looks like it is definately against Visa's policey of a flat rate convenience charge. Is it against Mastercard or any of the other cards merchent agreement as well? Does the University of Arkansas get special treatment because they are a public university?
EVEN THOUGH IT VIOLATES THE "SPIRIT" OF THE POLICY...THEY CAN RIP YOU OFF WITH AN EXTRA FEE
convenience fee
Every time is see that word I laugh
WHO IS GETTING THE "CONVIENCE" WHEN THEY GET RIPPED-OFF WITH AN ADDITIONAL FEE
Every time is see that word I laugh
WHO IS GETTING THE "CONVIENCE" WHEN THEY GET RIPPED-OFF WITH AN ADDITIONAL FEE
QUOTE (cljohnr @ Jul 27 2009, 02:23 PM)
What's the difference between a surcharge and a cash discount?
Semantics.
QUOTE (cljohnr @ Jul 27 2009, 03:23 PM)
QUOTE (webworm98 @ Jul 27 2009, 02:21 PM)
QUOTE (cljohnr @ Jul 27 2009, 02:14 PM)
Tons of threads about this here. It doesn't violate the agreement, as they use a third party processor to accept payment. Visa usually pulls out when they do this.
Well dont all merchants use a third party processor to accept payments?What's the difference between a surcharge and a cash discount?
Cash discount in regards to the merchant agreement is when you list a specific price for cash and a specific price for credit. The cash price is not allowed to be a variable percentage off.
If the university went that far, I'm pretty sure they have tightened up loopholes. But see if they have any.
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I have an anecdote here. My college (CUNY / Hunter College) had a "loophole" of sorts - albeit only for a semester.
Traditionally, if you paid with a Visa/MC in person at the Bursars Office, the surcharge didn't apply. You'd pay only the amount listed on the bill. About a year ago, Hunter College introduced online payments for "our convenience" (conveniently with a complicated surcharge structure - e.g.: 2% for Mastercard, 3% for Amex, etc. They also "for our convenience," stopped mailing us paper bills at this time). However, they still accepted cards at the Bursar Office without a surcharge.
People eventually caught onto this and one time, the lines to the Bursar Office almost stretched across the entire floor of the building. The following semester, the Bursars Office stopped accepting credit cards. Curiously, they stopped accepting Visa cards online too.
I'll be sure to donate smaller amounts as an alumni for their "convenience" too. It's only courteous to return the favor, y'know?
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I have an anecdote here. My college (CUNY / Hunter College) had a "loophole" of sorts - albeit only for a semester.
Traditionally, if you paid with a Visa/MC in person at the Bursars Office, the surcharge didn't apply. You'd pay only the amount listed on the bill. About a year ago, Hunter College introduced online payments for "our convenience" (conveniently with a complicated surcharge structure - e.g.: 2% for Mastercard, 3% for Amex, etc. They also "for our convenience," stopped mailing us paper bills at this time). However, they still accepted cards at the Bursar Office without a surcharge.
People eventually caught onto this and one time, the lines to the Bursar Office almost stretched across the entire floor of the building. The following semester, the Bursars Office stopped accepting credit cards. Curiously, they stopped accepting Visa cards online too.
I'll be sure to donate smaller amounts as an alumni for their "convenience" too. It's only courteous to return the favor, y'know?
QUOTE (azntg @ Aug 2 2009, 01:57 AM)
If the university went that far, I'm pretty sure they have tightened up loopholes. But see if they have any.
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I have an anecdote here. My college (CUNY / Hunter College) had a "loophole" of sorts - albeit only for a semester.
Traditionally, if you paid with a Visa/MC in person at the Bursars Office, the surcharge didn't apply. You'd pay only the amount listed on the bill. About a year ago, Hunter College introduced online payments for "our convenience" (conveniently with a complicated surcharge structure - e.g.: 2% for Mastercard, 3% for Amex, etc. They also "for our convenience," stopped mailing us paper bills at this time). However, they still accepted cards at the Bursar Office without a surcharge.
People eventually caught onto this and one time, the lines to the Bursar Office almost stretched across the entire floor of the building. The following semester, the Bursars Office stopped accepting credit cards. Curiously, they stopped accepting Visa cards online too.
I'll be sure to donate smaller amounts as an alumni for their "convenience" too. It's only courteous to return the favor, y'know?
---
I have an anecdote here. My college (CUNY / Hunter College) had a "loophole" of sorts - albeit only for a semester.
Traditionally, if you paid with a Visa/MC in person at the Bursars Office, the surcharge didn't apply. You'd pay only the amount listed on the bill. About a year ago, Hunter College introduced online payments for "our convenience" (conveniently with a complicated surcharge structure - e.g.: 2% for Mastercard, 3% for Amex, etc. They also "for our convenience," stopped mailing us paper bills at this time). However, they still accepted cards at the Bursar Office without a surcharge.
People eventually caught onto this and one time, the lines to the Bursar Office almost stretched across the entire floor of the building. The following semester, the Bursars Office stopped accepting credit cards. Curiously, they stopped accepting Visa cards online too.
I'll be sure to donate smaller amounts as an alumni for their "convenience" too. It's only courteous to return the favor, y'know?
UGA doesn't accept Visa either. I think Visa balked at the surcharge setup.
QUOTE (athensgaguy @ Aug 2 2009, 08:05 AM)
UGA doesn't accept Visa either. I think Visa balked at the surcharge setup.
Good for VISA. I think the third-party set-up still violates the intent and spirit of the rule and should not be allowed.
Just because YOU (business) contracted with a third-party does not mean that I sought out said third-party to pay my bill for me. Using a utility as an example, no, I went to the utility company's website to pay my bill.
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