Change to Payment Processing Fees
The Utah State Legislature passed a change to the ORS payment processing fee which will become effective on July 1, 2016. ORS has attempted to mail a notice of this change to all clients who might be affected (click here to see notice). This web page provides additional examples.
What will change?
Effective July 1, 2016, the ORS/CSS payment processing fee will be changed from $5.00 per payment with a maximum of $10.00 per month to 6% of the payment processed with a maximum monthly fee of $12.00 per case. The payment processing fee is deducted from the payment before it is sent to the family or to the other state, unless the family receiving the payment qualifies for and receives benefits from certain financial or medical assistance programs.
How This Change Could Impact You
The impact on each person due to this change will depend on the amount of each payment received and how often payments are applied to your case. For some applicants, the impact from this change will be an increase in the total payment processing fee from $10.00 to $12.00 per month. For other applicants, the payment processing fee will decrease.
Examples
When the parent or guardian who RECEIVES the support is the applicant for services, the entire payment amount is applied to the balance due before the payment processing fee is deducted.
Example 1 - Increase in Fee Payment
| Payments Received During Month | Payment Amount | Old Fee Amount Through 6-30-16 | Amount Sent to Parent/Guardian | New Fee Amount Effective 07-01-16 | Amount Sent to Parent/Guardian | |
|---|---|---|---|---|---|---|
| Payment 1 | $150.00 | $5.00 | $145.00 | $9.00 | $141.00 | |
| Payment 2 | 50.00 | 5.00 | 45.00 | 3.00 | 47.00 | |
| Payment 3 | 100.00 | 0.00 | 100.00 | 0.00 | 100.00 | |
| TOTAL FEES | $10.00 | $12.00 |
Example 2 - Increase in Fee Payment
| Payments Received During Month | Payment Amount | Old Fee Amount Through 6-30-16 | Amount Sent to Parent/Guardian | New Fee Amount Effective 07-01-16 | Amount Sent to Parent/Guardian | |
|---|---|---|---|---|---|---|
| Payment 1 | $200.00 | $5.00 | $195.00 | $12.00 | $188.00 | |
| Payment 2 | 200.00 | 5.00 | 195.00 | 0.00 | 200.00 | |
| TOTAL FEES | $10.00 | $12.00 |
Example 3 - Increase in Fee Payment
| Payments Received During Month | Payment Amount | Old Fee Amount Through 6-30-16 | Amount Sent to Parent/Guardian | New Fee Amount Effective 07-01-16 | Amount Sent to Parent/Guardian | |
|---|---|---|---|---|---|---|
| Payment 1 | $200.00 | $5.00 | $195.00 | $12.00 | $188.00 | |
| TOTAL FEES | $5.00 | $12.00 |
Example 4 - Increase in Fee Payment
| Payments Received During Month | Payment Amount | Old Fee Amount Through 6-30-16 | Amount Sent to Parent/Guardian | New Fee Amount Effective 07-01-16 | Amount Sent to Parent/Guardian | |
|---|---|---|---|---|---|---|
| Payment 1 | $130.00 | $5.00 | $125.00 | $7.80 | $122.20 | |
| Payment 2 | 130.00 | 5.00 | 125.00 | 4.20 | 125.80 | |
| Payment 3 | 130.00 | 0.00 | 130.00 | 0.00 | 130.00 | |
| TOTAL FEES | $10.00 | $12.00 |
Example 5 - Decrease in Fee Payment
| Payments Received During Month | Payment Amount | Old Fee Amount Through 6-30-16 | Amount Sent to Parent/Guardian | New Fee Amount Effective 07-01-16 | Amount Sent to Parent/Guardian | |
|---|---|---|---|---|---|---|
| Payment 1 | $50.00 | $5.00 | $45.00 | $3.00 | $47.00 | |
| Payment 2 | 50.00 | 5.00 | 45.00 | 3.00 | 47.00 | |
| TOTAL FEES | $10.00 | $6.00 |
Example 6 - Decrease in Fee Payment
| Payments Received During Month | Payment Amount | Old Fee Amount Through 6-30-16 | Amount Sent to Parent/Guardian | New Fee Amount Effective 07-01-16 | Amount Sent to Parent/Guardian | |
|---|---|---|---|---|---|---|
| Payment 1 | $15.00 | $5.00 | $10.00 | $.90 | $14.10 | |
| Payment 2 | 15.00 | 5.00 | 10.00 | .90 | 14.10 | |
| Payment 3 | 15.00 | 0.00 | 15.00 | .90 | 14.10 | |
| TOTAL FEES | $10.00 | $2.70 |
When the parent or guardian who PAYS the support is the applicant for services, the payment processing fee is deducted before the payment is applied to the balance due. This is not a common situation at ORS, but because it can occur, two examples are included.
Example 7 - Increase in Fees, Paying parent as applicant
| Payments Received During Month | Payment Amount | Old Fee Amount Through 6-30-16 | Payment Applied to Balance | Amount Sent to Parent/Guardian | New Fee Amount Effective 07-01-16 | Payment Applied to Balance | Amount Sent to Parent/Guardian | |
|---|---|---|---|---|---|---|---|---|
| Payment 1 | $150.00 | $5.00 | $145.00 | $145.00 | $8.49 | $141.51 | $141.51 | |
| Payment 2 | 50.00 | 5.00 | 45.00 | 45.00 | 2.83 | 47.17 | 47.17 | |
| Payment 3 | 100.00 | 0.00 | 100.00 | 100.00 | .68 | 99.32 | 99.32 | |
| TOTAL FEES | $10.00 | $12.00 |
Example 8 - Decrease in Fees, Paying parent as applicant
| Payments Received During Month | Payment Amount | Old Fee Amount Through 6-30-16 | Payment Applied to Balance | Amount Sent to Parent/Guardian | New Fee Amount Effective 07-01-16 | Payment Applied to Balance | Amount Sent to Parent/Guardian | |
|---|---|---|---|---|---|---|---|---|
| Payment 1 | $15.00 | $5.00 | $10.00 | $10.00 | $.85 | $14.15 | $14.15 | |
| Payment 2 | 15.00 | 5.00 | 10.00 | 10.00 | .85 | 14.15 | 14.15 | |
| Payment 3 | 15.00 | 0.00 | 15.00 | 15.00 | .85 | 14.15 | 14.15 | |
| TOTAL FEES | $10.00 | $2.55 |