Why can my electric company charge me a "processing fee" when paying with my credit card when making payment over the phone and I have seen this on other business too.
PECO has partnered with BillMatrix to bring you the convenience of last minute payment. Pay by credit card, debit card, or authorized e-check via phone or online.
BillMatrix will apply a processing fee of $3.50 to each transaction
I found this through a search...
For merchant who offer an alternative payment channel (i.e., mail, telephone, or e-commerce) for customers to pay for goods or services, a convenience fee may be added to the transaction amount. If the merchant chooses to asses a convenience fee to its customers, the merchant must adhere to the following rules:
- The fee is being charged for a bona fide convenience of using an alternate payment channel outside of the merchant's normal business practice
- The Fee:
- Must be disclosed to customers as a charge for alternate payment channel convenience
- Is applied only to non face-to-face transactions (There is an exception - Please see Visa Tax Payment Program)
- Must be a flat or fixed amount regardless of the amount of payment due
- Is included as part of the total transaction
- Cannot be added to recurring transactions
- Is assessed by the merchant that provides goods and services to the cardholder and not by a third party
- The customer must be given the opportunity to cancel prior to the completion of the transaction
If you do fall into the business categkeory that can charge a convenience fee on VISA transactions, you'll notice that in addition to the other rules, the fee must be a flat rate regardless of the order total.
What is you take on what it means by e-commerce?..does that mean using PayPal as you processing service (like BillMatix) you can charge a fee?
I haven't taken cards because of the fees.