Posted: Oct 22, 2011 2:11 pm
The DMV only takes cash because they don't want to pay the fees to the acquiring networks - Visa, MasterCard, Discover, Amex. The fees are expensive, and implementing a means to take electronic payments would cost way more than most people realize. Not defending them by any means, but I'm sure that's why (or at least the biggest excuse they give).
What's funnier is that the regular business owner is not allowed to surcharge to alleviate their burden of the fees and risk HEAVY fines if they do. The DMV here does; 3%, I think, when you renew by card. There is no exemption for them in the contracts they sign, the bankcard (Issuers, not acquirers) companies just never enforce it on them.
Every once in a while, I wish I was back in the card payment industry, but claims payment seems even more fun these days.