Survey Finds Fees Stop Americans from Paying Taxes by Credit Card

Survey
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.
The
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.
According
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.”
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