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In cities, convenience isn't cheap(Virginian-Pilot, The (Norfolk, VA) (KRT) Via Thomson Dialog NewsEdge) Jun. 8--BY JOHN HOPKINS THE VIRGINIAN-PILOT Paying city taxes, utility bills and other government fees online or by telephone with a credit card is easy and efficient -- but it's not cheap. Added to all those bills is a "convenience fee." For example, paying $300 in personal property taxes by credit card online will cost Suffolk residents $12 and Virginia Beach residents $9 in convenience fees. Paying a storm water bill online in Virginia Beach comes with a $4.95 fee. There's a $30 fee for paying $1,000 in Portsmouth real estate taxes online . The fees are often based on a sliding scale, varying from city to city, and increasing with the amount of the bill. All South Hampton Roads cities except Norfolk have contracted with Official Payments Corp. of Reston to handle online and telephone credit card transactions. "They will allow you to go to them and arrange for a transaction that includes a convenience fee, and they pay your taxes," said Virginia Beach Treasurer John Atkinson, the man who started the concept of tax payments by credit cards in the 1980s. With a private company acting as middleman in the credit card transactions, the convenience comes with a price. Some residents have noticed, city officials said. "They're upset because it's an exorbitant fee," said Atkinson, who began using Official Payments Corp. in 2005. In Chesapeake, there's even a convenience fee pay for a Parks and Recreation tai chi class online. Residents are warned, said Suffolk Treasurer Ronald Williams, who collected a little more than $1 million in taxes and other fees by credit card last year. Suffolk residents also paid $44,000 in convenience fees. "They're fully aware that the convenience fee is being added," Williams said. "On all of our bills and printed materials, we make sure it's very visible." Norfolk doesn't use Official Payments Corp. but does allow its residents to pay taxes and other fees by credit card in person, Treasurer Thomas Moss said. It's arguably not as convenient, but there's no extra fee. "It works quite well," Moss said. "We do get some complaints some times from people who want to do it over the phone." All cities have other payment options, including cash, personal checks, money orders and electronic checking, that do not require convenience fees. However, some residents may elect to use credit as a way to earn reward points, frequent flyer miles or for other reasons, Williams said. Atkinson said cities prefer to use private services that charge the fee so that municipalities don't have to process credit card transactions. "It's expensive to set the programming up, and the city didn't want to take on that burden or responsibility, so they elected to go with Official Payments," Atkinson said. Official Payments Corp.'s rates vary depending on the city and other factors, such as processing volume and size of the client, said Matt Brusch, a spokesman for the company, which has more than 2,000 clients. "I think it's a competitive fee based on the various providers who do provide this service," Brusch said. The fee is no different from the cost hidden or marked in the price of goods purchased in stores by credit card shoppers, Brusch said. The service, he said, is provided because people want the convenience. "This is another payment alternative," Brusch said, "And it's generally at the request of constituents." -- Reach John Hopkins at(757) 222-5221 or [email protected]. |