Which of our payment types qualify for a service fee?
We list them one by one, with the network rule each answer rests on, and we say which ones don't qualify.
Government · K-12 · Higher education
Card payments for cities, counties, schools and campuses.
Public agencies buy through procurement, answer to a finance office, and often can't absorb card fees. We work inside that: service-fee options where the card networks allow them, the payment channels your residents and families already use, and reporting your staff can reconcile.
- Which of your payment types can carry a service fee, and which can't, in writing
- A written proposal, or a plain answer on your solicitation, naming the company that would hold the contract
- A named representative from the first call
Service fees
Some payments can carry the card cost. Some can't. We sort yours.
The card networks let certain government and education payments carry a fee paid by the cardholder. Whether yours qualify depends on the payment type, your state, and your acquirer, the bank that holds the merchant account.
Visa's U.S. rules allow a government agency, utility, or education merchant to assess a service fee on eligible payments, in person and online. It has to be shown to the payer as a service fee before the payment completes, with the chance to cancel. It has to reasonably reflect the cost of the transaction. And it can't be stacked with a surcharge or a convenience fee.
A convenience fee is a different, narrower thing: a flat fee for paying through an alternative channel, such as online instead of at the counter. Agencies often use the two terms as if they were one. Their acquirers do not.
Mastercard runs a comparable program. We have not verified its current rule text, so we treat it as reported until your acquirer confirms it.
Read the rules, with sourcesPayment categories Visa lists as eligible
- Utilities
- Schools and educational services, from K-12 through colleges and trade schools
- Court costs and fines
- Tax payments
- Government services
Source: Visa Core Rules and Visa Product and Service Rules, April 2026 edition, section 5.5.3.1 and Tables 5-6 and 5-7. A category on this list is where eligibility starts, not where it ends: state law and your acquirer's approval decide the rest.
Who we work with
Public bodies that take payments from the public.
Cities and towns
Utility bills, permits, licenses, parking, and recreation programs, at the counter and online.
Counties
Property taxes, recorder and clerk fees, and the departments that each collect a little of everything.
Courts
Fines, fees, and citation payments, with deposits your clerk can tie back to the case.
K-12 schools and districts
Meal accounts, activity and athletic fees, and registration. Federal policy requires a fee-free way to pay for school meals, and any program we propose keeps one.
Colleges and universities
Tuition and fees, housing, campus stores, and events, on one set of reports for the bursar.
Utilities and special districts
Recurring bills by card or bank draft, and the customers who still pay by mail or phone.
How it works
Four steps, built around your process.
Step 1
Tell us what you collect
Your payment types, how people pay today, your state, and the billing, permitting, court, or student system you run.
Step 2
We map your options
Which payment types can carry a service fee and which can't, what the payer would see, and what the rest would cost, line by line.
Step 3
A proposal in writing
Every fee listed, and the acquiring bank and processor that would hold your contract named up front. Cardeva stays your point of contact.
Step 4
Go live with a named rep
You get a direct number. When something comes up, you call a person who already knows your account.
Have a solicitation out, or one coming? Send it. We'll tell you plainly whether we can respond and through which acquirer, and if it isn't a fit we say so before your deadline, not after.
For the finance office
Six questions to put to any payments vendor, including us.
These decide most public-sector payment purchases. Here is how we answer each one.
Who registers the program, and who holds the registration?
Where a network requires registration, it runs through the acquirer. Our proposal names who registers and who holds it.
Exactly what will the payer see?
You approve the wording before launch: the fee named as a service fee, shown before the payment completes, with the chance to cancel.
Does state law or our charter restrict the fee?
We check your state's statutes and tell you what we found and what we couldn't find. Your attorney confirms it.
How do deposits reconcile to the ledger?
By department and fund. Ask every vendor to show you those reports before you decide, and ask us too.
Does it connect to the system we run today?
This one decides most purchases. Tell us the system; we confirm in writing whether it connects before you commit, and we say so plainly if it doesn't.
FAQ
Straight answers.
Can a city, county, or school accept cards without paying the fees?
Sometimes. Visa allows eligible government and education payment types to carry a disclosed service fee paid by the cardholder (Mastercard runs a comparable program we confirm with your acquirer), within strict rules that depend on the payment type, your state, and your acquirer. We'll tell you which of your payment types qualify.
What is the difference between a service fee and a convenience fee?
A service fee is the card networks' program for government, utility, and education payments, and it can apply in person and online. A convenience fee is a flat fee for using an alternative payment channel, such as paying online instead of at the counter. They have different rules, and the two can't be combined on one payment.
Do you respond to RFPs and RFQs?
Send us the solicitation. We'll tell you plainly whether we can respond and through which acquiring bank and processor. If it isn't a fit, we say so before your deadline rather than after.
Can we add you to our vendor list?
Yes, as your contact for payment processing. Use the form on this page, or the phone number and mailing address at the bottom of this page. Purchasing offices usually file this work under NIGP 946-35, credit card and charge card services, and 946-70, payment card services. If a solicitation follows, we tell you whether we can respond and which acquiring bank and processor would be the contracting party.
Do school meal payments need a fee-free option?
Yes. Federal policy requires districts to offer a fee-free way to pay for school meals, and any program we propose keeps one.
What does this cost the agency?
Where a service fee applies, the payer covers the card cost on those payments. Everything else is quoted line by line, usually on interchange-plus pricing, with every fee in writing before you sign.
Which states do you work in?
We can work with agencies in any state. State law on payment fees differs, so we check yours before we propose anything.
Government and education
Tell us your payment types and your state. We'll tell you which qualify for a service-fee program, which don't, and what the payer would see.
Request a proposalGeneral information, not legal advice. Service-fee eligibility depends on the payment type, state and local law, and your acquirer's approval. Rulebook references are to the Visa edition cited; Mastercard's current rule text was not verified. The school-meal requirement is from the Consumer Financial Protection Bureau's 2024 review of K-12 payment platforms, linked in our article. See our Terms of Use.