Question: Our ASB financial clerks use credit card machines as a form of payment for the convenience of the users. The cost for this convenience has gotten very expensive and ASB funds are the entity paying the fees associated with credit cards. I would like to know if you think that it is legal to pass the expense of the fee on to the credit card user.

Response: As to whether or not it is appropriate to pass along credit card transaction fees to the customer that we are charged by the bank or credit card company, our opinion is:

a. If parents are given an option of paying with a personal check, cash, money order or credit card, we do believe charging a credit card fee would be acceptable since the parent has options of how to make payment. But if all that the district (or ASB) accepts is a credit card, we believe charging a fee would not be allowable. By giving them no other choice, the parent would be "forced" to pay extra to make payments.

b. Because the district is being charged a transaction fee by the bank/credit card company for the use of the credit card, we believe you would be able to pass that charge on to the person using their credit card if the district is only passing the actual fee on and not charging the credit card user any more than the district is being charged. The district should not make a "profit" by charging the credit card transaction fee.

c. Applying a flat fee would only be allowable if that flat fee is truly not more than the district is being charged.

 7/9/09