Taxpayers routinely pay obligations like taxes, speeding tickets, and licensing fees to government agencies. They also pay tuition to state colleges and universities. But they don’t want to unwittingly subsidize the cost of credit card charges generated by other taxpayers. Government agencies and similar organizations can be fully transparent in disclosing credit card fees, while simultaneously avoiding them and empowering taxpayers with the choice to similarly avoid them. This approach also makes collections easier, to shorten the revenue cycle and save even more taxpayer money.
Flexibility is the Key
Taxpayers want greater flexibility and control when it comes to payment options. Meanwhile, agencies and institutions want to reduce the time, labor, potential for error, and overhead associated with collecting and processing payments. Flex Rate Pricing is a timely innovation that delivers on both counts. Traditionally, educational institutions and government agencies charge a flat-rate service fee that everyone has to pay. They do so as a way to average out and recoup some of the high cost of credit card processing fees. But that kind of policy is less than fully transparent. Even payers who don’t use a credit card wind up paying for a share of the credit card fees. Flex Rate Pricing cures the annoying problem by eliminating credit card processing fees that are otherwise charged to agencies and organizations by companies like VISA and MasterCard.
A Fair, Safe, Secure Solution
Here’s how it works. The exact amount of the credit card fee is automatically calculated at the point of payment, and passed along to the cardholder as a separate line item surcharge. Agencies and institutions retain 100% of the amount billed, paying zero credit card merchant fees. If the taxpayer wants to avoid the surcharge, too, they can pay by another method like a debit card or cash. Flex Rate Pricing is also safe and secure, when supported by a payment processing platform that offers features such as data encryption, tokenization, and Level 3 PCI Compliance. There is no need to have technical expertise or additional infrastructure. The transition to Flex Rate Pricing capability can be implemented as a simple, cost-effective turnkey solution.
Additional Cost-Saving Features
All of this can also be done through a secure online digital payment platform. Then taxpayers can make payments 24/7, 365 days a year, whenever it’s convenient and using their mobile devices. To make the process even more efficient and effective, take advantage of automated electronic invoicing. Payers can view current and past invoices, schedule payments, and receive an instant digital payment confirmation and receipt. If a refund or payment reversal is necessary, the payment processing system can perform those tasks as well. Up-to-date real time financial reporting and reconciliation can also be done accurately and securely, and shared from the central payment platform with appropriate departments and authorized parties within the agency or institution.
Build Taxpayer Trust
Government agencies not only have a responsibility to control taxpayer costs, but doing so is also a great way to enhance customer service and trust. The same goes for other taxpayer-funded organizations like public schools, community colleges, and state universities. By leveraging the power of advanced payment processing technologies with integrated approaches like Flex Rate Pricing, it’s not only possible but it’s really easy to do.