Why is there a fee for using a credit or debit card to make a payment?

Many merchants accepting credit or debit cards are willing to pay the fees charged by credit card companies in order to provide that service to its customers. As a municipality, we do not have the option of paying those fees since we must collect the full amount of the tax bill. Therefore, when a taxpayer uses a credit card, the fees must be charged over and above the amount of the bill being paid.

 

A convenience fee is charged for processing each debit or credit card transaction as payment to a third party credit card processing service provider for accepting and processing the payment. The fee also covers the cost of the operation of a system for accepting card-based payments. This convenience fee is charged directly to the taxpayer as a separate charge on their cardholder statement. The fee amounts to 3% of the payment amount or a minimum of $2.00. No part of the convenience fee is paid to the Town of South Kingstown.

Show All Answers

1. What is the current tax rate?
2. What if I don’t receive a tax bill?
3. How do I electronically retrieve a copy of my current tax bill?
4. I escrow my Real Estate taxes – what do I do with my Real Estate tax bill?
5. I just purchased real estate in South Kingstown and received my tax bill – why is the tax bill under the prior property owner’s name?
6. When are tax payments due?
7. Is there a grace period after a tax bill’s quarterly due date before I am charged interest? What if my tax payment is late?
8. Why did I receive a late notice (“Notice of Account Statement”)?
9. How are penalties calculated?
10. If I mail a payment, will you honor the postmark?
11. Can I post-date my check?
12. What periods do tax bills cover?
13. Why can’t I register my motor vehicle; or, why can’t I renew my registration?
14. Why did I get a motor vehicle tax bill for a car I no longer own?
15. I don’t live in South Kingstown anymore – why am I receiving a motor vehicle tax bill from the Town of South Kingstown?
16. How can I pay my tax bill?
17. How can I pay my utility bill?
18. How do I make a payment with a credit or debit card?
19. Why is there a fee for using a credit or debit card to make a payment?