Why doesn’t MSU accept Visa?
Michigan State University’s current practice is to charge a pro-rate convenience fee. Visa allows a flat fee but not a pro-rata convenience fee. As an example, a pro-rata fee schedule would charge a $5.00 convenience fee on a $200.00 transaction and $43.00 convenience fee on a $2000.00 transaction. Visa’s flat fee method would require the same $43.00 fee to be charged regardless of whether the transaction is a $200.00 or $2000.00 transaction. The current pro-rata method allows MSU to re-coup its cost of doing business while those customers who choose to pay with a credit card share this expense at an equal rate. Visa’s method of charging a convenience fee would disadvantage many credit card customers.
