Credit Cards Online Information

The growing number of utility customers who pay their bills by credit or debit cards will be forking over a little extra come Tuesday.

That's the day Colorado Springs Utilities will begin imposing a $2.95 fee for residential customers and a $5.95 fee for business customers who pay their bills by credit or debit cards or by electronic check.

Officials with the city-owned utility said a relatively small number of the utility's 200,000 customers use credit or debit cards, about 20,000.

But the utility has seen an increase of 45 percent in the use of credit card payments this year, and that has driven up the credit card fees the utility has been charged.

The utility attributes the increase to the growing popularity of debit cards, which automatically deduct money from a user's checking account but also impose a fee on merchants who accept them.

The result: The utility has paid more than $1 million in card fees this year and expects those fees to increase to $3 million in coming years.

A recent utility survey found that 72 percent of customers thought it was only fair that card users pay those fees rather than cover the cost by folding them into utility rates that every customer pays. The utility also surveyed 32 other utilities and found 76 percent of them impose similar fees.

Utility officials said retailers and other businesses that accept credit cards price their goods and services to cover the cost of card fees.

Utility executives decided doing that would be unfair to customers who pay by cash or check, especially in an era when utility rates have been rising to pay for upgrades and additions to facilities.

In addition to the new fees, the utility on Tuesday no longer will accept credit card payments through the mail or at the drivethrough and lobby of the Customer Service Center on Cascade Avenue.

Credit card rules don't allow those methods of payments unless customers who pay cash or check also are charged a fee, something the utility is not willing to do.

That means people have three options to pay with plastic: call the Customer Service Center with their card information, pay online or call Western Union Speedpay, the firm that will process all card payments for the utility.

The utility will continue to accept checks, cash or money orders without fees, either by mail or at the Customer Service Center or through electronic fund transfers from bank accounts.

CONTACT THE WRITER: 636-0197 or bill.mckeown@gazette.com

UTILITY PAYMENT OPTIONS

Beginning Tuesday, Colorado Springs Utilities will impose a fee on customers paying utility bills with credit or debit cards and electronic check payments.

THE FEES WILL BE:

$2.95 for residential customers on amounts up to $500, with an additional $2.95 fee for every $500 after that.

$5.95 for commercial payments up to $2,500, with an additional $5.95 for every $2,500 after that.

Such payments can be made by calling 448-4800, by visiting www.csu.org or by calling Western Union Speedway, the card processor, directly at 1-866-611-2261. That number will not be effective until Tuesday.

The utility will continue to accept cash, money orders or checks through the mail, at the drop box, lobby or drive-up at the Customer Service Center, 111 S. Cascade Ave.

# posted by Medical Information : 3:38 AM