A charge assessed by a payee when a consumer pays with a credit card rather than by check or Automated Clearing House (ACH) transfer.
DEFINITION of 'Convenience Fee'. A charge assessed by a payee when a consumer pays with a credit card rather than by check or Automated Clearing House (ACH) transfer. Convenience fees can be a fixed dollar amount or a percentage of the transaction amount (usually 2% to 3%) and must be disclosed to the consumer in advance. BREAKING DOWN 'Convenience Fee'. Suppose you want to pay the IRS by credit card. The IRS will accept credit card payments through several different payment processing companies, and they all charge convenience fees. One might charge 1.88% with a $2.75 minimum, while another might charge 2.35% with a $3.50 minimum. A convenience fee may only be charged as a convenience for providing a payment method outside of a merchant's normal business practice. Visa and MasterCard have encouraged new avenues of card acceptance by allowing merchants to charge a convenience fees in the situations described below. A convenience fee is charged for paying your property taxes online. Please note that the convenience is a third-party fee and is not part of city funds. 1  For Credit Card payments the convenience fee is 2.25% of the total amount charged. 2  E-check payments can now be made with NO CONVENIENCE FEE. Please see the convenience fee charts below for the following: Online and Telephone Payments. Convenience Fee Calculator. Pay Online and by Phone (1-800-890-1950). The following credit cards and debit cards are accepted online and by phone (IVR): Credit Cards. 1  American Express. 2  Discover. 3  MasterCard.
http://www.investopedia.com/terms/c/convenience-fee.asp http://www.investopedia.com/terms/c/convenience-fee.asp http://www.gdpay.com/education/convenience/ http://sftreasurer.org/convenience-fee http://sftreasurer.org/convenience-fee
convenience fee definitions