Got my new Capitol One credit card in the mail today. I planned on using it to pay my property taxes. My property tax bill indicated there would be a convenience fee but I figured paying $3 or so would still be worth it, since I'd be earning $100 cash back from Capitol One.
I went to the website of "Official Payments" to do so and after entering my data, I learned there would be a $91 convenience fee to do so using my credit card. (A debit card is charged just $3; too bad I don't have a debit card.)
$91???? You've got to be kidding me!
I called my town clerk's office to complain about this. Perhaps they were unaware Official Payments charges such usurious fees. The town clerk was nonplussed. Why would anyone pay such an outrageous fee, I asked. Well, maybe some people have no other way to pay their property taxes than with a credit card, she said. I'm surprised the town of NXXXX would do business with a company like that, I said. Oh, a lot of the towns do business with them, she said.
Geez. I just can't believe government entities would condone this kind of charge. I have half a mind to complain to someone at the state level.
$91 "convenience fee" for paying property taxes with a credit card
December 11th, 2012 at 08:20 pm
December 11th, 2012 at 08:35 pm 1355258144
I suppose the question then becomes how much does the payment processor have to pay to the credit card company (merchant fees) and how much do they get to keep?
December 11th, 2012 at 08:45 pm 1355258747
December 11th, 2012 at 09:03 pm 1355259795
Sorry the fee is so high that it won't be worth it to use for the cash back.
December 11th, 2012 at 09:10 pm 1355260216
Does your town taxation system have a Tax Installment Payment Plan [TIPPS]? It's an automatic deduction from your bank account of 1/12 of your annual property tax. There is no fee here as the City is pleased to have income spread out. A lot of people escrow their property tax payment into their mortgage as a seamless payment but in many instances the mortgage company profits by adding a fee as you've discovered via Capital One.
December 11th, 2012 at 09:26 pm 1355261195
December 11th, 2012 at 11:52 pm 1355269947
Snafu, my regular grocery store won't take American Express.
December 12th, 2012 at 02:34 am 1355279646
December 12th, 2012 at 06:53 pm 1355338384
How are you feeling? Definitely draining here. I have a swollen sore throat and a slight ear ache. Ibuprofen and tea are my best friends today!!