Paying service charge for online payments

[disneysteve]

I generally avoid making online payments when there is a service fee, but I'm starting to come around to doing it despite the fee. A couple of years ago I started doing online payments for our property taxes. The fee is 99 cents rather than a % of the payment. I figured a stamp is nearly that much so the fee saves me a stamp, an envelope, and writing a check. Plus I get instant confirmation and proof of payment.

Today we got the registration renewal for my wife's car. I decided to do it online. The fee was steeper at 2.95% which came to $2.26, but again, a stamp is $0.66 so that brings it down to $1.60 and I don't need to write and mail a check and there's no risk of it getting lost. I've already got confirmation and a digital temporary card until the paper card comes in the mail.

Where do you fall on this sort of thing? Do you stick with paper checks or just pay online despite the fee?

[bjl584]

I don't really run into this situation.
I do have a couple bills that I have to send via snail mail. The property tax bill for my cabin doesn't have an online payment option.

The closest I came to this is when I tried to pay my electric bill via a credit card so I could get the cash back reward. The service fee for a credit card payment outweighed the cash back reward, so I opted just to pay via the normal payment from my checking account.

[disneysteve]

I don't really run into this situation.

We’ve got multiple bills that this applies to. Property tax, municipal tax, sewer bill, car registrations, drivers license renewal, and maybe others.

[kork13]

There's almost always an option to pay a bill without a fee, or with a small enough fee to make it worthwhile. Each time I come across it, I just check what's best. Whether credit card, eCheck, EFT, mailed check, or occasionally (dealing with the stinking incompetent city hall in our little rural town.... ) walking in with a check in hand.... In that order.

[srblanco7]

I generally avoid making online payments when there is a service fee, but I'm starting to come around to doing it despite the fee. A couple of years ago I started doing online payments for our property taxes. The fee is 99 cents rather than a % of the payment. I figured a stamp is nearly that much so the fee saves me a stamp, an envelope, and writing a check. Plus I get instant confirmation and proof of payment.

Today we got the registration renewal for my wife's car. I decided to do it online. The fee was steeper at 2.95% which came to $2.26, but again, a stamp is $0.66 so that brings it down to $1.60 and I don't need to write and mail a check and there's no risk of it getting lost. I've already got confirmation and a digital temporary card until the paper card comes in the mail.

Where do you fall on this sort of thing? Do you stick with paper checks or just pay online despite the fee?

I'm trying to wrap my head around why there would be a service fee for an online payment. The recipient gets their money without any human interaction as would be the case with mailing a check or making a payment in person. Though i am noting more places adding a surcharge when you pay with a credit card - in essence passing the merchant fee (approx. 3%) on to the consumer.

[disneysteve]

I'm trying to wrap my head around why there would be a service fee for an online payment. The recipient gets their money without any human interaction as would be the case with mailing a check or making a payment in person. Though i am noting more places adding a surcharge when you pay with a credit card - in essence passing the merchant fee (approx. 3%) on to the consumer.

In this particular case it’s the CC fee. I find any government entity charges that and has for many years. It’s not new at all which is why I’ve never done it.

[disneysteve]

There's almost always an option to pay a bill without a fee, or with a small enough fee to make it worthwhile. Each time I come across it, I just check what's best. Whether credit card, eCheck, EFT, mailed check, or occasionally (dealing with the stinking incompetent city hall in our little rural town.... ) walking in with a check in hand.... In that order.

Yes, the no fee option is to mail a check or pay in person (I’d never do that with DMV).

[myrdale]

When I make a purchase with my debt card, I flatly refuse to pay fees.

A lot of gas stations will charge a fee if you buy less than a minimum amount. This is in breach of the contract they signed with Visa who guarantees no fees and no minimum charges for debt transactions. I just don't do business there.

Of course there is a price associated with paying by check, which I do. Checks are $30 per 100 maybe? And who knows how much a stamp cost now days, $0.66?

I did get hosed at a local tire shop. They rung me up with out realizing there was a 10% fee added to a $30 job they performed. Later when I went back for a full set of tires, I realized they were going to charge the same 10% fee for the $700 set of tires, so I told them to hold the bill, I drove home, got my check book and returned.

There are fees for transferring crypto, pass through fee/ gas fee? I don't get it and it appears to be a scam.

There is a guy on YouTube, Louis Rossmann, who does computer repair. But he has also documented having to go pay certain fees to NYC for his business. There are cases where you have to pay in cash, the exact amount and no prices are posted, which means you better bring a change jar with you.

[ua_guy]

I'm trying to wrap my head around why there would be a service fee for an online payment. The recipient gets their money without any human interaction as would be the case with mailing a check or making a payment in person. Though i am noting more places adding a surcharge when you pay with a credit card - in essence passing the merchant fee (approx. 3%) on to the consumer.

There are merchant/processing fees for any card transaction, they're just generally less with Debit. There's also the expense of paying a vendor to set up and maintain an online payment portal, to keep it secure and compliant with banking regulations.

Our state calls this the "convenience" fee.

I use a card transaction wherever I can, and pay convenience fees where they are due. If I was in a different financial situation, I might rethink my choice. Card/electronic/online payments for me are most convenient, I like the instant confirmation and documentation that I've paid what was owed. I consider it cheap insurance where deadlines are consequential like for property taxes, insurance policies, vehicle registrations.

[jenn_jenn]

I usually just suck it up and pay the service fee. I don’t like the fee but I like the convenience of online payments.

[disneysteve]

I usually just suck it up and pay the service fee. I don’t like the fee but I like the convenience of online payments.

I think it depends on the fee. I don’t mind the 99 cent fee on our property tax bill but I wouldn’t do it if they charged 3% which would be over $50.

[jenn_jenn]

I think it depends on the fee. I don’tmind the 99 cent fee on our property tax bill but I wouldn’t do it if they charged 3% which would be over $50.

That’s fair but I’ve never seen a % based fee on higher cost services/items. Usually in this case it’s a flat fee.

The most expensive service charge we have on our bills is $2.99 for the monthly HOA on our condo. I do sometimes consider mailing it but more than half time, it’s a tax deduction anyway (bringing the cost down) and it’s just so much easier to pay online with automatic payment.

[disneysteve]

That’s fair but I’ve never seen a % based fee on higher cost services/items. Usually in this case it’s a flat fee.

Our synagogue charges 3% on all payments including dues, donations, school tuition, etc. Dues are over 2K/year so I pay by check.

[LivingAlmostLarge]

Our synagogue charges 3% on all payments including dues, donations, school tuition, etc. Dues are over 2K/year so I pay by check.

this is why schools are trying to use zelle or checks.

[disneysteve]

this is why schools are trying to use zelle or checks.

I wish ours used Zelle. I’ll have to ask about that. Unfortunately our administrator just left but as soon as the new one is in place I’ll ask.