The Government Accountability Office (GAO) has released a report highlighting the advantages of credit and debit card payments for government agencies. According to the findings, these transactions facilitated $43 billion in payments and generated nearly $500 million in rebates for the government. The report also indicated that accepting card payments reduced administrative burdens linked with collections.
Richard Hunt, Executive Chairman of the Electronic Payments Coalition, commented on the findings: “The GAO report just proves what small businesses across the country have long known: Credit and debit card payments are efficient, safe, secure and less costly and burdensome than handling cash payments.” He expressed concern over potential legislative changes such as the Durbin-Marshall bill, stating it could threaten these benefits.
In 2023, government entities carried out approximately 750 million transactions, with processing costs remaining below 2%. The GAO noted that these transactions improved customer convenience by allowing immediate transaction verification rather than waiting for checks or cash deposits.
The National Park Service's adoption of cashless payments at certain parks led to net savings due to lower processing costs compared to cash handling. Similarly, the Post Office reported a reduction in theft risks associated with handling cash as more transactions shifted to card payments.
Federal officials echoed these sentiments in the GAO report, noting that card acceptance boosted operational efficiency and cut administrative expenses.
The full report is accessible online.
We believe investing in new technologies and legislating national data security standards will create a stronger payment system.