Property Taxes Latest New Market for Credit Card Processors

Credit cards are continuing to enter previously uncharted waters in creating new markets due to third-party payment providers.

Only a couple of weeks after ChargeSmart LLC, San Francisco, announced its program to enable cardholders to pay mortgages, student loans and auto loans, through its service ("New Program Allows Consumers to Pay Mortgage with Credit Cards," July 10), Houston County, Ala., announced that it has selected Paymentus to handle credit card transactions for annual property taxes. Powell, Wyo., already allows citizens to pay utility bills through the Paymentus service.

The company, which has offices in Atlanta, Georgia and Toronto, Ontario, charges users a 2.5 percent fee for the service, according to a report in the Dothan (Ala.) Eagle.

Previously, Houston County had paid a 2.4 percent fee to a card processor for payments, with fees ranging from $7,000 to $8,000 annually, according to the Eagle. With Paymentus, the fee burden shifts to the payer.

The property tax payment program is a pilot. County officials have expressed interest in expanding the credit card option to other services if the pilot pans out, according to the Eagle report.

Outside of government clients, Paymentus also works with consumer finance, auto loans, mortgages, insurance, utilities, telecommunications, service providers and small businesses for credit card and other online payments, according to the company’s Web site.