I called NYS department of taxation and finance today to pay some tax liabilities. While the person on the other side was very helpful, when asked about if I could pay the taxes by credit card he said that there is a convenience fee of 0.45% (minimum $1).
So, to pay a tax liability of $3.58, I paid $4.58 (not a big amout by any means) but I was confused, why?
In my little business experience, I know that credit card companies bar their merchants from charging a fee for credit card transactions. Here is a reference link:http://wiki.answers.com/Q/Can_merchants_charge_a_fee_for_using_a_credit_card
So, I am surprised on how come a government agency is exempted from this universal rule?
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Filed under: Finance
You paid approximately 27.9 %, so I consider this convenience fee quite a lot.