GOVERNMENT AND PUBLIC SECTOR MERCHANT ACCOUNTS

Government agencies, educational institutions, utilities and other businesses in the public sector face challenges when it comes to payments. Increasingly, many customers prefer to pay college tuition, utility bills, insurance premiums or tax payments with credit cards over the Internet or telephone-based interactive voice response or IVR systems.

Benefits to Public Sector Agencies

Labor and Operational Efficiencies

Credit and debit card acceptance allows agencies to automate fee collection via the Internet, automated telephone voice response units, and self-service kiosks.  Card transactions are often completed more quickly and efficiently than transactions that involve making change, filling out forms, or processing checks.  Card acceptance also reduces the cost of labor to process transactions, mail and deposit float, and reconciliation and shrinkage. Card acceptance can also be helpful in reducing delinquencies.

Automated transactions can also result in substantial labor savings by reducing customer traffic in field offices with high labor, real estate, and overhead costs. In addition, payments in cash or by check may create additional expenses such as armored car services, data entry costs, and bank deposit or lockbox fees.

Improved Cash Flow

The electronic payment methods available with cards today can result in funds deposited in an account more quickly, allowing you to earn faster. In addition, credit and debit card payments made by telephone or in a face-to-face environment can eliminate "mail float," the forgone time spent while checks are in the mail in order to eliminate late payments.

Reduced Risk of Losses from Bad Checks

When card transactions displace check transactions, the resulting volume of checks returned for "nonsufficient funds" (NSF) and their associated fees, penalties and collection costs are reduced. This diminishes redeposit fees that your agency must pay, as well as the cost of processing additional transactions.

Enhanced Payment Compliance

Payment card acceptance offers payment flexibility, allowing cardholders to spread payments out over time. This can result in healthier collection rates of taxes, fees and fines and increased revenues. Consumers also appreciate the convenience of debit cards that enable them to access a checking account without writing a check.

Increased Customer Satisfaction

Electronic payment methods allow public sector agencies to match the level of customer service typically provided by companies in the private sector. Shorter waiting times, better customer relations and greater access to information are all possible in public sector payment transactions. Consumers expect the speed, convenience and payment flexibility that cards offer. They demand an ever-wider variety of payment choices from government agencies. In fact, the costs involved in card transactions can often be partially or fully offset by the benefits of card acceptance.

Public Sector Categories

Child Support Services

Late child support payments can drain state and local resources, and agencies involved in collecting court-ordered child support often face compliance problems when constituents are short of funds. Payment card acceptance can help individuals receive timely child support payments, improve collection rates, and increase revenues. Non-custodial parents can make payments online or arrange to have recurring payments debited from their bank account. Allowing cardholders to spread payments out over time helps families become more self-sufficient, while saving taxpayers money.

Courts and Fines

Agencies responsible for collecting taxes, fees and fines often struggle with compliance problems when constituents are short of funds. Card acceptance offers payment flexibility, reducing paperwork and enabling cardholders to spread payments out over time. Greater payment flexibility can result in healthier collection rates and increased revenues.

Department of Motor Vehicles

From issuing driver licenses and registering vehicles to collecting fuel taxes, card acceptance offers a convenient and more efficient way to conduct daily business. Credit and debit card acceptance can streamline revenue collection. And consumers can use their cards to conduct routine DMV transactions by telephone or online.

Public Transportation

To accommodate increased ridership and the public's demand for better service, transportation agencies are installing new ticket and turnstile equipment. Automation helps agencies to streamline operations and cut costs by reducing cash transactions. Card acceptance provides faster payment and access to funds and offers expanded purchasing and payment options for riders. They can use payment cards at ticket vending machines or buy advance tickets online at any time, nearly anywhere. And smart card and magnetic stripe card programs allow riders to purchase bulk trips from an agency in advance.

Taxes

Agencies collecting state and local taxes conduct a high volume of business.  By accepting card payments, tax collection agencies can reduce paperwork by facilitating paperless returns. Electronic filing also enables agencies to collect and process payments more efficiently and reduce handling costs and fees due to lost and returned checks. Taxpayers benefit from more convenient payment options and quicker refunds.

Reliable Service and Support

NDMS has unparalleled customer service and continuous technical support. Our engineering teams and support specialists ensure smooth implementation and responsive ongoing service and support.  A wide selection of reports help you better manage payment processing and track convenience fees, so you can save time and money.

Recurring payments

Today, many businesses as well as consumers, are looking for ways to make paying bills more convenient.  And, chances are, many of them are your customers. Recurring payments – when your customer authorizes you to bill a card account monthly, quarterly, or annually – can give them the convenience they want. Payment amounts can be fixed or fluctuate and payment agreements can exist indefinitely, providing the easiest way to ensure timely payment. This also brings a host of benefits for you, including a significant competitive advantage.

Benefits to Merchants

• Satisfy demand for payment card options
• Reduce payment-related customer service calls
• Improve cash flow and reduce exposure to lost payments and bad checks
• Reduce delinquencies
• Improve collections
• Increase customer retention

Benefits to Cardholders

• Convenience of setting up account payments once
• Time savings from writing fewer checks
• Relief from stress, knowing bills are paid on time
• Cost savings on postage
• Earning points/frequent flyer miles in eligible rewards programs