RE: Credit Card Fees

From: Hannah, Joan T (jhannah@radford.edu)
Date: Thu Jan 30 2003 - 12:51:28 EST

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    Stuart,

    We use an outside company called PhoneCharge, Inc. to process credit
    card payments via touchtone and the web. We accept Visa, Mastercard and
    Discover. PhoneCharge charges a convenience fee to the card holder.
    The convenience fee is a set amount depending on the dollar amount
    charged, although this will be changing soon since Visa recently
    published new regulations. According the new Visa regs the convenience
    fee charged to the card holder for making a payment through an
    "alternative payment method", should be a fixed or flat fee regardless
    of the amount paid. Therefore, beginning Feb. 1 PhoneCharge will be
    charging a flat fee of $30 for all credit card payments on Visa,
    Mastercard and Discover. PhoneCharge based our flat fee on our payment
    activity in 2002. PhoneCharge will review our activity every three
    months to make sure the convenience fee is appropriate.

    Hope this helps. Let me know if you have questions.

    Joan T. Hannah
    Manager, Student Accounts
    P.O. Box 6922
    Radford, VA 24142
    540 831 5504
    jhannah@radford.edu

    -----Original Message-----
    From: Stuart B. Warner [mailto:swarner@wnec.edu]
    Sent: Thursday, January 30, 2003 11:30 AM
    To: bursar-l@virginia.edu
    Subject: Re: Credit Card Fees

    We are stopping accepting credit cards due to the close to $200,000 in
    fees we have to pay. We got very little bad response from our
    traditional, full-time students. Transient, part-time students are
    having a tougher time. Even so, we think we have come out way ahead.
    We are currently investigating what it means to use a third party
    processor via phone or weblink to accept cards. That way we get the
    benefit, and the processor gets to charge their fee for the service and
    cover the credit card fee. We don't have a lot of information, yet, on
    how much a stand alone processor charges the school. Any input would be
    appreciated.

    Stuart Warner



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