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  Articles

Dec 1, 2007. By Jonathan Stoops

For many years, local governments were reluctant to accept credit card and electronic check payments because of the fees incurred to use the services. Agencies that chose to accept credit cards often paid for the services out of their operating budgets, limiting funds for other programs or raising taxes. Now, local governments are implementing electronic payment methods that use a flat convenience fee to increase receivables, strengthen collections, provide an alternative form of payment for constituents and increase revenue.

Credit card companies used to fight the idea of allowing government agencies to charge convenience fees for residents who paid with their cards, arguing that the fees would discourage credit card use. But, as people grew accustomed to paying the fees for non-government services or online purchases, eventually, the credit card companies changed their tune.