The proposed rule consolidates treatment of all Division of Motor Vehicles transactions for which credit card, debit card, and other electronic payment methods apply, and the associated convenience fee. Therefore, the proposed rule repeals the provisions that are currently established as ss.
Trans 196.04 (1) (d) and
250.04, and consolidates those convenience fees into the convenience fee structure applicable to all Division of Motor Vehicle products and services.
Comparison with federal regulations
No federal rules apply.
Comparison with rules in adjacent states
Michigan:
Michigan accepts Discover and MasterCard at some DMV offices for in-person transactions, and for some on-line transactions. The customer pays a 2% convenience fee.
Minnesota:
Minnesota does not accept credit or debit cards.
Illinois:
Illinois accepts Discover, MasterCard, and American Express for in-person transactions. For on-line transactions, Illinois accepts VISA also. The customer pays a convenience or “process" fee.
Iowa:
Iowa is currently implementing credit cards at the stations. The customer will pay a convenience fee that may be a flat fee based on average transaction amount, assumed distribution of card types, and assumed number of transactions.
Summary of factual data and analytical methodologies
The Department proposes to establish convenience fees that are as uniform as possible among different types of transactions. The convenience fee amount must approximate the cost to the Department of providing electronic payment option.
The Department's on-line payment process is provided through the Enterprise Banking Services Contract. Agencies are parties to the contract. The Department pays the Enterprise Bank a fee for processing each payment. The fee consists of both payment to the Enterprise Bank and payment to the card-issuing bank. The Department's costs for in-person transactions may vary from on-line transactions, because the Department will require additional equipment, installation and maintenance, to accept in-person card payment. Therefore, the proposed rule allows the Department to establish a different convenience fee amount for in-person transactions and on-line transactions.
Analysis and supporting documentation used to determine effect on small businesses
The Department offers electronic transactions to most businesses using standard Automated Clearinghouse payment procedures. These procedures are currently in place and most businesses already participate. Moreover, businesses as well as individuals may continue to pay Department fees by check or cash; payment by methods that require a convenience fee is voluntary.
Small Business Impact
The Department concludes that there is no effect on small business as a result of this rule.
Fiscal Estimate
The Department estimates that there will be no fiscal impact on the liabilities or revenues of any county, city, village, town, school district, vocational, technical and adult education district, sewerage district, or federally-recognized tribes or bands.
Anticipated costs incurred by private sector
The Department estimates that there will be no fiscal impact on state or private sector revenues or liabilities.
Agency Contact Person
Ms. Carson Frazier
DOT — Bureau of Vehicle Services
Room 253, P. O. Box 7911
Madison, WI 53707-7911
Phone: (608) 266-7857
