Using Credit Cards for SCRIP

We offer three ways to pay.  Paying with cash or check gives 75% of the contribution back to you for tuition.  We also offer credit card.  This method has proven to be very costly to the organization.  We are once again faced with a tough decision.  Since we don't want to eliminate the credit card payment option, we are changing the amount of contribution that will come back to you.  It has been that you get 50% back, but in 90% of the credit card transactions, we lost money.  Therefore this is the new credit card policy, effective March 17, 2006:

• It costs us 4% of the total amount charged to the credit or debit card.  So that 4% bee will be deducted from the contribution of that transaction.  After that has been deducted, you will receive 75% of the remaining contribution for tuition credit.  Here are a couple of examples:

   

  • Ex. 1:  You purchase $100 of a 2% vendor, $200 of a 3% vendor, $100 of a 5% vendor, and $100 of a 9% vendor.  Your total amount charged to the credit/debit card is $500.  It costs us $20 to process your card ($500 x 4%).  The contribution of the transaction is $2 + $6 + $5 + $9 = $22.  The $20 cost is deducted from the $22, leaving $2.  You would receive $1.50 ($2 x $.75) in tuition credit.  Notice that if you would have paid with cash or check you would have received $16.50 ($22 x .75).
  • Ex 2:  Your employer purchases $1000 of a 5% vendor.  The total contribution is $50 ($1000 x 5%).  It costs $40 to process the card.  $50 - $40 = $10 x 75% = $7.50 tuition credit.  IF this would have been paid with a check, you would have gotten $37.50 in tuition credit.

  Realize that for a credit card transaction to be profitable to you, the net transaction must be greater than 4%.

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