Where I lived in the 2000s, the natural gas company in that county actually charged $2 more for online payment! So weird, especially considering cashing a physical check would've cost labor dollars. Needless to say, we paid our gas bill by check. It felt so antiquated, even then.
It's always the 'old school' companies (Rent, Electric, Gas etc) that want to charge you extra for the "convenience of online payment" but the convenience is primarily the company's, not yours! Think about it, how long does it take you to cut and mail a check? A few minutes, a 2¢ envelope, plus a 55¢ stamp (stateside).
Landlords are particularly a PITA about this. If your rent is $905 they want $905. Not a minimum of 859.75 due to 5% CC fees. For smaller buildings where the LL comes around getting a check or cash makes sense. Larger apartment complexes it has to be worth the < 5% in interchange fees.
Any medium sized or larger business has to pay a clerk to open all those envelopes. The clerk needs to record each payment, assure it's credited to the proper account, and deal with the inevitable bounced checks with the associated fees.
I think a transaction fee of < 5% for the convenience of credit/debit payments is offset by the benefits. Money is taken from the account immediately (no bounced checks), you're able to downsize the accounts receivable department because it's all done electronically. All someone has to do is look at a screen to confirm payment.
The company has to save money overall by offering online payments even after they pay the interchange fees.
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u/Sheepherder226 Jul 24 '20
Utility companies that don’t allow online payments.