University of Southern Mississippi Student Calls Out School for Tacking on Credit Card Fees
In a letter to the editor in the school newspaper, graduate student Ara Gallo takes her university to task for passing on expensive credit card fees to students.
The Student is Right
One doesn’t have to be politically active to understand the burden of college expenses. Tuition, Room & Board, and many other expenses are growing each year exponentially, according to Forbes.com. It’s incredible students can afford to attend classes at all, without signing their lives away with hundreds of thousands of dollars in student debt. Trying to keep up with these fees is impossible, so how can colleges tack on an extra fee just for using a credit card?
The University is Wrong
The University of Southern Mississippi is in the wrong here for a variety of reasons. First, by accepting credit cards, they agree that it is an advantage to receive an instant payment. There is always a cost for convenience, so they should welcome instant payments for a small fee. When the university reviews their monthly merchant statements and associated fees, likely in the tens or hundreds of thousands of dollars, they may cringe at the expense. However, it is their choice to accept credit cards, not Ara’s decision.
Passing on a convenience fee for accepting credit cards is a recent change. The practice was previously frowned upon and disallowed. However, just because it is allowed doesn’t mean it’s advisable.
What can be done to fix it?
We recommend that the University of Southern Mississippi immediately discontinues its pass-through fee to students for accepting credit cards. It’s a bad practice and terrible optics.
It’s very likely that the university is currently overpaying for credit card processing services. The best thing they can do is contact IdealCost.com to see if they are being overcharged if the situation is fixable.
Don’t Take On The Credit Card Processors By Yourself
Since 2009, IdealCost.com has helped hundreds of companies nationwide reduce their merchant account fees through identifying and fixing hidden profit, overcharges, fake fees, and billing errors. Clients have saved $300-$20,000 per month on their credit card processing fees without going through the hassle of changing their processing vendor, bank, or equipment. Switching credit card processors should be a last resort, only reserved for funding delays, poor customer service, or technical difficulties. Before you consider switching credit card processors, see if you qualify for IdealCost.com’s monthly savings program. Upload your most recent merchant statement for a free analysis. You’ll receive an estimate within 24 business hours.
If you are opening a new credit card processing account or switching credit card processors, feel free to contact us for a free consultation. IdealCost.com can help secure the best terms and fees based on your specific needs.