Yes—about 82% of U.S. cardholders have at least one rewards card. These cards are increasingly used for bill payments, particularly by affluent and business customers who tend to make large, recurring payments. Without a strategy to offset processing costs, utilities will see continued margin erosion.

Yes. IntelliPay’s service fee program is complaint with Visa’s service fee rules.

Convenience fees are flat, fixed amounts charged for using alternative payment channels like online or phone. They come with strict limitations: they can’t scale with transaction size and can only be applied in certain channels.

Service fees—either percentage-based or flat—can be applied more broadly across channels and card types. 

Utilities are now included under Visa’s Service Fee Program, they offer greater flexibility, cleaner compliance, and more effective cost recovery.

No. Surcharging applies to standard retail and must adhere to complex rules (e.g., no debit card fees). Service fees are permitted for MCC 4900 (Utilities) as a charge for an alternative payment channel, making them compliant with card brand regulations.

Most utilities operating under eligible merchant category codes (MCCs) qualify. Your payment processor can confirm eligibility based on your business type and payment processing setup. IntelliPay handles this assessment as part of the implementation process.

Most traditional utilities providing Electric, Gas, Water, and Sanitation services are classified under MCC 4900, the standard utility code used by Visa and Mastercard for these types of merchants.

Correct MCC 4900 classification is typically required for a utility to participate in the networks’ specialized utility programs—such as Visa’s Utility IRF and eligible Service Fee constructs—which can enable compliant customer‑paid fees and more favorable, utility‑specific interchange pricing.

The Utility remains the Merchant of Record. IntelliPay operates as a third-party payment facilitator, ensuring the service fees comply with rules that require the merchant or its agent to be the charging entity.

Our service fee program can cover all card payments: online, phone, recurring, in-person—all Visa-compliant

Unlike retail surcharging, the Service Fee model often permits applying the fee to debit card transactions when processed in a specific, compliant manner, which allows for maximum cost recovery regardless of card type.

Our program complies with the Service Fee rules, which are different from general surcharging, and are specifically permitted for utilities under the current VCR/VPSR. 

VISA’s product and service rules can be found here.

Compliance requires correctly identifying the transaction type, submitting the required Merchant Verification Value (MVV), and ensuring the customer is properly disclosed the fee before finalizing payment. IntelliPay manages these technical requirements.

No—most utilities launch a service fee program in weeks with minimal staff impact. IntelliPay handles compliance, setup, and communication with customers and your board, and provides ongoing support as regulations evolve.

Service fee processing is more equitable—fees are only charged to customers who choose to pay by card, not to those paying by cash or check.

Service fees are legal and widely used by utilities in all states, provided programs follow card brand rules and state disclosure requirements. IntelliPay monitors regulatory changes and updates its solutions as needed, so compliance is current.

Utility fee regulations are often governed by State Public Utility Commissions (PUCs) or local government statutes. While card brand rules are uniform, local law dictates what fees can be passed on to the consumer.

IntelliPay is a PCI DSS Level 1 Compliant Service Provider. This is the highest level of security certification for handling and processing cardholder data, minimizing the compliance burden on the utility itself.