JUNE 23, 2010

All branch offices now take Discover, MasterCard at counter

Secretary of State Terri Lynn Land always believes in giving her customers credit. Now, she's doing it in a way that makes their lives easier.

Land announced that all Secretary of State offices are accepting Discover and MasterCard payments at the counter, a convenience that until now has been reserved only for PLUS office and SUPER!Center visitors.

"Fewer people are carrying cash or checks," Land said. "They want to do business with the swipe of a credit card. We're delighted to expand this convenient option to all customers. It reflects our nonstop commitment to deliver the most modern, timesaving services possible. We've always said that our customers deserve credit. Now we're giving it to them."

Allowing credit card payments in branch offices has been one of Land's primary customer service goals. No offices accepted them when she became Secretary of State in 2003. However, in 2004 she successfully negotiated with Discover so that card would be accepted in PLUS offices and SUPER!Centers. She then convinced MasterCard to come on board in 2008.

Visa still is not accepted for transactions at the counter due to its corporate policy. It is, however, accepted for online, mail, telephone and Self-Service Station transactions, as are Discover and MasterCard.

The challenge involved with accepting credit card payments in offices deals with service fees.

Credit card companies charge businesses and government agencies a fee for each transaction paid for with a credit or debit card. Unlike Discover and MasterCard, Visa won't let the department charge a nominal 2 percent service fee for face-to-face transactions to offset the cost of using its card. While private businesses can increase the overall cost of their goods and services to recover that fee, the Department of State cannot. Driver's license and vehicle registration fees are set by state law.

Credit card service fees are not charged for alternative transactions because those methods are less expensive for the department to offer. For example, Internet transactions on average are processed at one-half the cost of those done at the counter.

"Discover and MasterCard have been terrific business partners," Land said. "We appreciate their willingness to recognize the constraints faced by government agencies. Their flexibility allows us to better accommodate our valued customers and that's what we're all about at the Department of State."

Branch office customers may continue to pay with cash or check if they wish. To assist those who pay with cash, Land had ATMs installed in more than 100 offices.

The Department of State is known as the "face" of state government because it interacts with nearly every Michigan resident. Driver's licenses, vehicle registration, automobile dealer and repair licensing, and voter registration are among the department's many services. Roughly 14 million transactions a year are handled in branch offices.

Visit www.Michigan.gov/sos to find the nearest branch office.