Why did Colorado Springs Utilities change the payment process?
We partnered with Western Union Speedpay (WU/SP) to provide customers the options they want in the most cost-effective manner. Western Union Speedpay has the technology, expertise and capabilities to provide the desired services. With this partnership, ratepayers will not need to pay for costly upgrades to our system. Who is Western Union Speedpay and how were they chosen as the payment vendor?
WU/SP is an electronic payment vendor. They process payments for 80 utility companies across the country. From a field of ten vendors, WU/SP best demonstrated the ability to provide: - Low customer fees
- Desired customer options and convenience
- Financial security
- Low operational costs and a streamlined partnership with Springs Utilities
Why are customers being charged a convenience fee?
In past years we have incorporated payment processing fees into our rate structure, thereby charging all Springs Utilities customers for a service used only by some customers. Because of increasing costs to process credit cards, increasing use of credit cards, and our efforts to keep rates as low as possible, we have selected a third party vendor for processing electronic payments. How much is the fee?
$2.95 for residential customer payment amounts up to $500, and $2.95 for each $500 increment thereafter. Ninety-eight percent of residential payments made within the last 12 months fall within this category. Business customers are charged $5.95 for payment amounts up to $1,000, and $5.95 for each $1,000 increment thereafter. I don’t get charged other places for paying electronically. Why do I have to pay a convenience fee when I pay my utilities bill?
Retailers and other businesses that take electronic payments simply build their payment processing costs into the price of the products or service that they sell. With the rising costs of credit card fees and higher credit card usage, including these fees in the rates charged to all customers was no longer an option. Do other utility companies charge a convenience fee?
Yes, we surveyed 32 utility companies across the country and found that 76 percent have implemented convenience fees. The average fee for other utilities is $4.95 for residential customers. Why is the fee different for residential customers versus business customers?
The fee Western Union is charged by the credit card companies varies depending on the transaction amount. Business accounts typically pay larger bills and therefore the fee is larger. The utility rates you are charged on your account determines whether or not you will be charged a residential convenience fee or a commercial convenience fee when paying by credit/debit card. Does the convenience fee go to Springs Utilities?
No, Springs Utilities does not receive any part of the convenience fees associated with the processing of credit card payments. Our new vendor, WU/SP, charges these fees. Where will the extra charge appear - my credit card bill or utility bill?
Customers who choose to pay by phone or online will see two separate charges on their credit card or bank statement. One charge will be to Springs Utilities for the amount of the utility payment only. The second charge will be from Western Union and will reflect the amount of the convenience fee charged. How do I know my information is secure?
We follow strict policies and regulations regarding the release of customer information and the retention of information. All transmissions sent to WU/SP use secure SSL encryption, the industry standard. WU/SP also uses encryption to transmit payment information to us. Can I still conduct other utility business after I make a payment?
WU/SP has the ability to route you to a Springs Utilities Customer Service Representative during Springs Utilities business hours. If you have connected to a WU/SP representative and have already made your payment, you can request to be transferred directly back to a Springs Utilities Customer Service Representative. Will I be able to view my bill online?
We do not yet have this capability available. Is Colorado Springs Utilities allowed to charge this convenience fee?
Yes, credit card companies allow businesses and organizations to charge a convenience fee for all payments made through specific channels, such as phone and Internet. The ability to pay by phone and Internet provides added convenience for customers who choose to use these specific channels. Customers may pay through these channels, through WU/SP, using a credit card, debit card or electronic check. A surcharge, on the other hand, is charged only to credit card sales and, therefore, disadvantages the cardholder as a fee for the privilege of using a credit card. This is prohibited by the credit card associations, and Springs Utilities and WUSP do not impose a surcharge. What will Springs Utilities do with the $1 million dollars saved?
We are a not-for-profit organization. As with other cost-saving measures, the savings will be invested back into utilities operations to help keep rates as low as possible for all customers. | 
