Wal-Mart does it, so does Home Depot. Some in Congress have suggested it as regards creating a health exchange for medical insurance.
The buying power, or negotiating position, of large groups (or "big" customers) can bring down costs.
This was made clear when Christiansburg Town Council last discussed negotiating merchant service fees collected by the finance industry for credit and debit cards. It was pointed out that Montgomery County offers the ability to pay taxes or fees using debit/credit cards or through an online feature, and because of a budget that includes the public school system, had a better bargaining position.
These bank fees are determined both on the amount of each transaction, and another one specific to what was negotiated by contract with that particular customer -- or group.
It is also important to realize there are equipment costs (card terminals and telephone land lines) involved, over and above staff time. Credit or debit card transactions are either done in person or via a phone call (and using a card over the phone costs more than transaction done in person). It helps local governments collect past-due accounts, with overdraft or over limit fees becoming the individual's problem.
This type of transaction should not be confused with online bill payment features offered by many banks for checking or savings account customers (some institutions offer this for free, many charge a fee).
This type of transaction should not be confused with online bill payment features through the town's website (this requires use of software the town purchased long ago, staff training, and aligning processes).
Why then doesn't anyone provide this service? Specifically, citizens see the Virginia Municipal League, or the Virginia Association of Counties, or even local business chambers and regional economic development partnerships -- but none are offering collective bargaining power to their customers.
If local governments have the same needs for the same types of services, to keep costs as low as possible for taxpayers, why don't we see attempts to create a pool that gives citizens (and their elected representatives) a better bargaining position?
This could be extrapolated and applied to health insurance, hazard and automotive insurance, gasoline or equipment purchases.
We already have geographic commonality, as well as the need for similar services. Does the State Code constrain our elected leaders, or is this due to working in silos with certain service providers raking in tax dollars?