June 24, 2010
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News: Michigan Extends Credit Card Pymt Options
While new financial reform could motivate government agencies to change policy regarding the acceptance of debit and credit card payment, Michigan has just entered the scene. The Michigan Secretary of State, Terri Lynn Land announced new changes are going into effect that will allow Michigan residents to use their debit and credit cards to pay for services provided by the Michigan Secretary of State offices. Land made the announcement at a news conference at the SUPER!Center Branch in the Centerpointe Mall on Wednesday. The announcement comes on the eve of sweeping financial reform is being debated in Congress that may affect the way the government agencies, merchants, and colleges and universities accept card payment. New legislation would allow merchants and organizations that currently or in the future accept payment by credit card to set mins and maxes that could possibly reduce the amount of payment processing fees that the organization pays.
According to Land, Michigan residents will now have the capabilities of paying for such services as card title and driver's license fees with their Discover and MasterCard credit cards at all branch offices. Until now, credit card payments were only accepted at PLUS and SUPER!Center branches. Land said that customers have been asking for the state to expand its options of paying by card and the state is pleased to offer these new state wide benefits. At this time, the Secretary of State cannot accept payment by Visa cards because Visa contracts prohibit the charging of a nominal fee. That could soon change if the new legislation is passed with this issue addressed.
The Michigan Secretary of State's office had considered raising fees in order to compensate for the extra expense of including Visa in the face-to-face credit card payment program, however, raising prices could only be done through the law. Land noted that Michigan residents do have the option of paying by Visa card online, through the mail, over the phone, or at self-service stations. Any others who use their Discover or MasterCard in the face-to-face program will be assessed a 2 percent nominal fee.