Consumer Payment Card News

Tax Fees

A new survey shows that while 63% of American adults are aware that the IRS now accepts credit cards, only 1% plan to use a credit card to pay incremental Federal income taxes the next time they owe because of the convenience fees associated with the transaction. The study reveals that if the service were free, 34% of taxpayers would use it. NY-based Ipsos-Insight’s Financial Services survey of 1,000 Americans found that a significant number of taxpayers would use this service if the fees charged to them were 1% or less. Ipos says if the IRS decides they want broader usage of this payment option, they will need to find a way to pay the card companies a processing fee, like other merchants. Most services that enable consumers to charge taxes assess a fee of 2.0% to 2.5% of the transaction amount.

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