Convenience/Service Fee Definitions

The following definitions are associated with convenience/service fee processing:

Principal Amount - The principal amount is the amount charged by the merchant. For example, a customer pays their real estate tax bill in the amount of $100. At that time they are also charged a service fee of $2.50. The principal amount is the transaction in the amount of $100.

Convenience/Service Fee Amount – The convenience/service fee amount is determined by the collection type (i.e. real estate tax payment or tuition payment versus utility payment). Service fees are associated with government and education-related collections and convenience fees are associated with other industry sector collections.

Dual Transaction Service Fee Model – Dual transaction service fees are only applicable for government and education-related collections when Visa is an accepted card type. In this model, the following occurs:

  • Two merchant accounts are configured, one owned by the merchant, one owned by Govolution
  • The principal amount is deposited into merchant’s bank account
  • The service fee is deposited into Govolution’s bank account
  • Two transactions are processed, resulting in two transactions on the cardholder’s statement

 Single Transaction Convenience Fee Model – Single transaction convenience fees are applicable to collections for industries other than government and education. In this model, the following occurs:

  • One merchant account is configured and owned by the merchant
  • The principal and convenience fee amounts are deposited into the merchant’s bank account as one total amount
  • Govolution invoices (or automatically debits) the merchant on a monthly basis for total fees processed
  • The cardholder will see one transaction on their bank statement, representing the total of the principal amount plus the convenience fee amount



Velocity is an electronic payment system and service provided by Govolution, LLC, a  wholly-owned subsidiary of First American Payment Systems. Velocity has been honed to meet the strict technical, financial and security standards of the U.S. Federal Government. Starting with payment processing, its modules enable a full spectrum of business activities including back-end reporting, data management and administrative tools that integrate with legacy accounting, cash management and CRM systems.