Effective June 1, Duck River Electric will implement a minimum payment amount of $25 when members make payments using any debit or credit card. In addition, a maximum $5,000 payment amount based on the member number (the first six digits of the account number) over a 20-day period will also apply to debit or credit card charges.
Currently, the card companies charge DREMC a fee each time members use credit or debit cards to make payments. The new limits will reduce this expense by more than $161,000 per year.
Over an average month, 4,159 payments were made by debit or credit cards to pay amounts less than $25. Of those, 753 payments were below $5. Some members use their cards multiple times during the month which includes those participating in DREMC’s prepay program. The card company fees associated with these low-dollar payments are significant and sometimes more than the amount paid by the member.
“To be good financial stewards of the rates our members pay and good servants of our members, we are reducing credit card fees by placing upper and lower limits on the amounts that members can pay with their credit cards,” said DREMC President and CEO James Wright.
Adjusting the card limits will, at least for now, help DREMC avoid passing all credit card transaction fees to the members regardless of the amount paid.
The minimum and maximum payment amounts will apply to regular monthly bills, PowerUP Prepay participants, Aid in Construction, HVAC loans and purchases from DREMC.
