California DMV Credit Card Fees and Vendor Contracts

The California DMV has a complex system when it comes to credit card fees and vendor contracts. The DMV charges a convenience fee for using a credit card to pay for services online or by phone, which is 2.5% of the transaction amount, with a minimum fee of $2.50 and a maximum fee of $5.

To give you a better idea, let's look at an example. If you use a credit card to pay for a driver's license renewal online, the convenience fee would be $2.50, regardless of the transaction amount.

The California DMV contracts with a third-party vendor, Pay.gov, to process credit card payments. The contract specifies the terms and conditions of the convenience fee, including the percentage and minimum/maximum fee amounts.

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The California DMV now charges a service fee for debit and credit card transactions. This fee is 2.1 percent for online payments, DMV kiosk payments, and automated telephone service payments.

A fresh viewpoint: Credit Card Currency Conversion Charges

Customers paying with a debit or credit card at a field office will be charged a 2.3 percent service fee. Cash, check, or money order payments are still fee-free.

Only the Davis field office currently accepts credit card payments. A pilot program is underway, with plans to expand to Roseville, Fresno, and Victorville in the coming weeks.

By 2020, all remaining field offices will accept credit card payments. This change was prompted by Governor Newsom's task force to streamline DMV processes and reduce wait times.

Discover more: Credit Card Interchange Fee Settlement

The DMV vendor contract is worth up to $7.1 million and runs from February 9, 2023, to February 8, 2026, with the option for two one-year extensions.

CSG Forte's contract started on February 9, 2023, and is designed to reduce the number of dishonored checks and customer complaints.

The DMV has used an e-check verification service since 2012 and anticipated over 700,000 e-check transactions per month over a three-year period.

The contract requires CSG Forte to provide real-time verification of customer e-check account information and ensure at least 90% of e-check bank routing and account numbers are verified for online payments.

Data shows there were 104,134 online dishonored checks from April 2023 to August 2024, representing 0.91% of all transactions.

The DMV will continue to monitor customer feedback and e-check rejection rates to ensure accurate account numbers are provided.

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