Most students are overwhelmed with tuition obligations, and they value any opportunity to reduce those costs. But there is an easy, transparent, and equitable way for schools to help them save money, by simply adopting the innovative strategy known as Intelligent Rate Pricing.
The Problem with Service Fees
Americans are constantly hit with unexplained fees and service charges. The fees are tacked on to invoices sent by phone and utility companies, numerous government agencies, and even educational institutions. These extra costs have a significant and expensively cumulative negative impact on their finances. Credit card processing fees paid to companies like MasterCard and VISA are steep. To help recoup those “swipe fees” fees, a flat rate, across-the-board service fee is often added to the bill. But oftentimes the more costly consequence is that the payer feels deceived and the customer or student relationship suffers unintended but irreparable harm.
Justifying Fees without Calculating the Real Cost
The end result of this one-size-fits-all policy is that all students, even those who do not pay tuition using a credit card, are subject to the added fee. That represents an inequity that can quickly undermine trust. Colleges and universities trying to attract the best and the brightness cannot afford to alienate those students, and would never do so intentionally. But it can happen by charging credit card service fees that are perceived as unfair and unjustified. After all, nobody likes being forced to subsidize the cost of credit card charges that were generated by someone else.
Innovation That Benefits Everyone
The good news is that now there is a fair solution that benefits everyone. Intelligent Rate Pricing enables educational institutions to discontinue the practice of charging a flat-rate service by completely eliminating their credit card processing fees. With Intelligent Rate Pricing, schools automatically retain 100% of the amount billed that is paid for with a credit card. At the same time, students only pay for the transaction costs that they themselves create. They have the option to avoid those costs by paying without a credit card. For example, they can instead pay by debit card, check, wire transfer, or other method. The same holds true when students pay miscellaneous fees to the school for such things as meals, housing, textbooks, and field trips.
An Easy Turnkey Solution
There is no software to install, and no technical expertise or added IT infrastructure is needed, because Intelligent Rate Pricing is a turnkey solution. Nearly 70 percent of students save money with Intelligent Rate Pricing, and colleges, universities, and other educational institutions save 100 percent of their credit card processing fees. They also gain the priceless value that comes from an enhanced reputation for financial transparency and fairness. The payment system can also be supported with robust security features including encryption, tokenization, and Level 3 PCI Compliance.
Added Features and Benefits
All of this can be done through a secure online digital payment platform, where students are able to make payments 365 days a year, including from mobile devices. They can use the portal to review invoices and schedule future payments, while receiving instant electronic payment confirmations and receipts. Refunds can be seamlessly executed, and accounting departments can perform automated tasks like producing financial reports. That reduces time, human error, and labor─which contributes even more bottom line savings.