Advocate editorial board opinion: Fee defeats purpose of online payments
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Three dollars may be a small matter, but the principle makes it a much larger issue.
The city of Victoria should not charge a processing fee for using a credit card to pay utility bills online. The fee should not be passed along to a customer because paying online is one of the fastest and most efficient ways to pay a bill. The city should encourage efficiency and convenience.
We are referring to the city tacking on a fee for its customers who want to pay their utility bills with a credit card online. Paying online is a convenience and encourages customers to pay their bills. Why turn them off with a $3 fee added for the convenience of paying online?
This is an example of government making a rule that applies to everybody but the government - adding more bureaucracy, which costs money. Businesses, on the other hand, are not allowed to charge a fee that would be added to a customer's purchase, using a credit card, according to the Texas Finance Code, Chapter 339.001, but city, county and state agencies are exempt from this law.
So the city is dinged with a credit card fee. What business isn't? Businesses absorb the fee to keep customers happy and coming back. The city should, too, and figure ways it can be more efficient to balance the expense of this customer convenience.
We think this digital advantage to paying online becomes a disadvantage with a fee charged to customers, and the city is inadvertently resorting to inefficiency by having personnel track and maintain the fee.
The advantage of automated payments for the city - or any other business - is that staff time isn't needed to process the payment. City personnel could be used for other tasks, creating a potential savings.
In addition, automated payments tend to be on time. Late payments lead to more inefficiency.
The city doesn't charge customers a fee if they pay their utility bills in person, by automatic bank drafts or by mail. Yes, credit card companies charge businesses a processing fee. Yes, the city should try to cover its costs. But, no, the correct answer is to not just pass along more expense to the taxpayers. Rather, the city can and should look for the savings created by automated payments.
We think the "convenience" fee is the wrong way for the city to handle online payments for utilities. This so-called convenience is for the city, not the customer.
This editorial reflects the views of the Victoria Advocate's editorial board.
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I just hand the tip to the waiter/waitress. I know they get it. And, I always pay cash when dining out. Simplifies things.
October 2, 2011 at 11:23 p.m.The city should actually allow a discount for lessening their cost of doing business this way.
October 2, 2011 at 4:53 p.m.I do electronic banking with First Victoria. They pay the bill for me for no charge. I'm going to sing up for autopay os I don't have to worry. When it comes due,it gets paid. I'm slowly simplifying my life.
October 2, 2011 at 4:18 p.m.tinstar,
I was afraid of that.I used to try to leave a cash tip at the table but it startrd to get too complicated.
I use to pay by debit card, when I saw the notice about charging 3.00 to pay with this method, I went streight to paying by check.I AM NOT GOING TO PAY THE CITY ....... TO PAY THEM.
October 2, 2011 at 10:13 a.m.Another problem with the online pay feature is that you cannot make a partial payment. My roommate and I split the bill, but we are unable to use the online payment feature because we can't make a partial payment, it defaults to the full amount. It's not a very user friendly site, either.
October 2, 2011 at 9:22 a.m.LOL. A sock full of pennies. Just dump them out on the counter and start counting 1, 2, 3...
October 1, 2011 at 8:33 p.m.What I don't understand is why one must go inside to pay their bill with a debit card rather than being allowed to pay through the drive through service. The office does not open until 8 a m therefore I have to hurry to pay by debit card inside and rush to get to work by 8:30.
October 1, 2011 at 7:56 p.m.I used to pay online with a debit card but I don't care for the extra fee. Now I go in and pay with the very same card in person and guess what ? No fee. If this policy was uniform across the board than I should be charged a fee for coming in to the office in person too. This makes no sense to me but as Zapaterchupacabra recently pointed out in another thread, I am pretty dense.
October 1, 2011 at 7:53 p.m.I know of at least one resturant owner that takes a percentage of the tip, if paid for by a credit or debt card.
October 1, 2011 at 7:10 p.m.http://debtresources.org/save-money-b...
http://www.paul-levesque.com/environm...
http://www.merchantsupport.com/html/i...
"Enabling Straightforward Payment Flow
What is the real cost to you for waiting? This refers to waiting for a check to go out for payment — waiting for it to be cashed and approved. Check payments can significantly increase processing time and expense, which, in turn, slows down the claim process, thereby increasing costs and the likelihood of mistakes to enter the equation."
October 1, 2011 at 6:46 p.m.Hmm, let's think this thru. Originally, merchants, banks and consumers would save money by paying with a debit card or credit card, it was said to be more efficient and less expensive to whoever you are paying, no checks to processes don't you know.
NOW, you charged extra for using the less expensive paperless payment option.
What ever happened to paperless being cheaper?
October 1, 2011 at 6:35 p.m.Editorial Board,
I wish you luck with this arguement but I wouldn't hold out too much hope.
Businesses do NOT "absorb the fee to keep their customers happy," as you say. The fee is one more cost of doing business and is passed along to the consumer in the price of the good or services they purchase. That is to say, ALL of the consumers, no matter what their method of payment.
At least the city is trying to isolate THIS cost of doing business to the people who actually use it and pay by credit card. The city has no other way to "absorb" this expense other than higher taxes or higher rates for all. (It is painful to agree with city government, but I have to admit, they got this one right.)
As you have probably already guessed, I pay by check.
October 1, 2011 at 6:04 p.m.