Credit Card Payment FAQ
Q: Why did the University of Minnesota decide to allow students to pay with credit cards?
A: The credit card option has been added to our electronic online billing and payment service, in response to requests from students and/or their payers for added convenience and flexibility in paying educational costs.
Q: What credit cards will be accepted for payment of tuition and fees?
A: Electronic Billing will link to the credit card vendor, NelNet, to process American Express, Discover Card, or MasterCard payments. If you use a credit card to pay your bill, you will be assessed a service charge by NelNet of 2.75 percent of the payment amount each time you make a payment. Debit or check cards do not work.
Q: Are other colleges and universities taking credit cards?
A: Colleges and universities all over the country have made similar credit card payment policies. Two of those institutions—the University of Pittsburgh and Temple University—charge a fee for credit card payments; do not accept VISA; and accept credit card payments online only. Other universities not accepting VISA include Indiana University, Syracuse University, and the universities of Illinois, Nebraska, and Texas. Many colleges and universities do not accept credit card payments.
Q: Why is the University assessing a 2.75 percent service charge to pay with credit cards?
A: The University is not accepting credit card payments directly. Credit cards are being accepted by NelNet, a vendor contracted by the University that is charging a fee for their service.
- The 2.75 percent rate based on the payment amount for each transaction was determined by our vendor.
- The University of Minnesota will not receive any part of the service charge.
- While credit card payments offer convenience, the cost to the University was estimated to be approximately $2 million annually. Therefore, the University decided to require those who use this convenience to cover its cost.
Q: Why don’t you take VISA?
A: VISA’s rules will not permit the vendor to assess a percentage service charge, requiring the University to assess the same charge for eCheck bank transactions that allow payment directly from checking or savings account. The University chose not to change the current practice of free online banking services.
Q: Is the service charge refundable?
A: The 2.75 percent service charge is non-refundable. Any service charge disputes must be taken directly to your credit card company.
Q: Is there a minimum or maximum amount I can charge on my credit card?
A: You and/or your payer can make a credit card or eCheck payment on Electronic Billing for a minimum of $1 or a maximum of $20,000.00. Payment maximums also depend on your credit card limit.
Q: What if I make a credit card payment for more than I owe on my student account?
A: The University is required to refund any overpayments made by credit card back to the credit card company. The service charge will not be refunded for the portion overpaid. Service charge disputes must be taken directly to your credit card company.
Q: Can I pay with a credit card in person or over the phone?
A: No. Credit card payments can only be made online through Electronic Billing and Payment. Credit card payments are not accepted in person or over the phone because credit card rules would require the University to add the service charge to all payment types. The University would have been forced to add the service charge to check and cash transactions.
Q: Will Continuing Education change their credit card policies to coincide with Electronic Billing?
A: The University’s contract with their vendor,NelNet, states that charges billed on Electronic Billing cannot be paid with credit cards unless the payment is made through Electronic Billing. Therefore, CE will now direct their students to pay on UM Pay, if they choose to use a credit card.
Q: What happens if I make a mistake when I enter my credit card information online?
A: If a credit card number or other personal information is entered that is inconsistent with your credit card account, the payment will be rejected immediately. If the payment is rejected, you will be told that you are over your credit limit. You will be able to view all past rejected payments in your transaction history.
Q: How will I know if my payment is approved?
A: Credit card payments will be instantly approved and an online receipt issued to you.
Q: I received a refund for tuition and fees. How will I get it if I paid with a credit card?
A: Refunds for tuition and fees initially paid by credit card will be refunded to the credit card company used. However, the service charge will not be refunded.
Q: Why can’t I see the service charge on my student account?
A: The service charge is assessed by NelNet, our vendor, not the University of Minnesota, so it will not appear on your University student account. However, you and your authorized payer will be able to see the service charge in the transaction history within Electronic Billing. The service charge will also appear as a separate charge on your (or your payer’s) credit card statement.