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More than a quarter of American colleges are now charging processing fees to students who pay their tuition with credit cards, and the practice is becoming more common.
Colleges typically pay credit card companies a 2% fee to handle such transactions, and with budgets shrinking, they are increasingly passing those fees — along with a surcharge, in some cases — on to students.
Virginia’s George Mason University, where half of all students pay by credit card, is imposing a new 2.75% fee for credit card use. The university’s controller expects that the change will produce revenue of $1.5 million a year.
July 14 update: Now comes word (from @globecampus on Twitter) that some Canadian students are banning such transactions entirely. As of September, Dalhousie University in Nova Scotia will prohibit the use of credit cards for tuition payments, in a move that may generate as much as $1 million in annual savings.
