Kansas Insurance Department Ahead of the Times in 1995

Kansas Insurance Department Policy on Credit Card Payment

On November 6, 1995 the Kansas Department of Insurance issued what I believe to be the VERY FIRST in the nation statement on accepting credit card payments for insurance premiums.

Here is a link to the Bulletin

file:///C:/Users/Duke/Desktop/Card%20Fees%20Summary%20June%202018/Kansas/1995-19%20Accepting%20Credit%20cards%20for%20Premiums%20Bulletin.pdf

The Department was responding to the complaint that the transaction cost of accepting a card payment constituted a REBATE since a significant portion of the premium went to the credit card transaction cost.

I find this to be a wonderfully creative approach to the issue of the high cost of card transactions.

Apparently some agencies and carriers felt it was a marketplace advantage for some companies to offer to accept credit card payments but resisted accepting cards themselves because of the reduction in NET PREMIUM received after the transaction cost.

Looking back on this argument I would suggest they should have taken the position that the rewards points created by payment with a credit card could be considered a rebate since those points can be used as funding to pay for a wide variety of benefits - like airline tickets.