Survey Finds Fees Stop Americans from Paying Taxes by Credit Card
Finds Fees Stop Americans from Paying Taxes by Credit Card
In February we reported that paying
taxes with a credit card is a poor idea, due to the 2.49%
credit card processing fee that you’d be forced to pay. A new
survey from research firm Ipsos Insight shows that these fees
are indeed keeping Americans from using what would otherwise
be a very convenient form of payment.
survey of 1,001 people found that while 68% of American adults
know the IRS accepts credit cards, only 1% plan to use a credit
card to pay their 2005 federal taxes.
More than three out of four (78%) said they “definitely will
not” use a credit card the next time they owe federal income
taxes. However, if the service were free, 23% of those open
to the concept would use it.
to Doug Cottings, Senior Vice President with Ipsos Insight’s
Financial Services practice, the processing fees associated
with paying taxes with a credit card have defeated the purpose
of making this option available in the first place. “The
fees negate the attraction to credit card benefits such as convenience,
habit, rewards points or payment deferrals. This negative outcome
has effectively destroyed the effort to broaden taxpayer’s payment
options through credit card payments.”
Disclaimer:The information in this article is believed to be accurate as of the date it was written. Please keep in mind that credit card offers change frequently. Therefore, we cannot guarantee the accuracy of the information in this article. Reasonable efforts are made to maintain accurate information. See the online credit card application for full terms and conditions on offers and rewards. Please verify all terms and conditions of any credit card prior to applying.
This content is not provided by any company mentioned in this article. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any such company. CardRatings.com does not review every company or every offer available on the market.
Published (Modified )