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Credit card fee is fair

Posted: Wednesday, November 17, 2010

In reference to Dave McDonald's letter about the 2.5-percent fee charged at the Borough for paying your taxes with a credit card. This is not a new fee. It has been in place as long as the Borough has accepted credit cards. Any card transaction has a fee for processing, charged by the issuing card company. The 2.5 percent is a low rate. Commercial companies (Fred's, Walmart, etc.) just include it in the cost of the goods sold and everyone pays even if they pay cash.

I would be upset if the Borough did not charge extra for a card transaction. If they did not, it would mean that the guy using a card would be paying less taxes (some of the money paid would have to go to cover the transaction fee). Plus, the card user would defer his taxes for another month or until he paid the balance on his credit card. It would also mean that "my taxes" would have to cover a greater portion of the borough operations. Maybe the Borough should jack up the taxes 2.5 percent and then give a discount for cash.

I would suggest that anyone not understanding this simple business principal enroll in an accounting course at KPC. They take cards and have factored into the cost of education the cost of the card company fees. Even cash customers pay the higher rates.

Will Hightower

Sterling



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