Who pays for the convenience?

In the age of computers, smartphones, iPads and Internet, I find it very upsetting that the credit card "convenience fee" is still applied by various organizations.  What is the "convenience" if you have to pay for it?  I guess it's the way for the retailers to cover the charge back by the credit card companies.  What get me is that government offices also charge that fee.  When renewing my registration sticker on the Internet, the Illinois Secretary of State wanted to charge $2.25 to cover payment processing.  On the top of the exuberant $99 for the sticker! The explanation states:

Why do I have to pay a convenience fee?
The Secretary of State's office pays a small fee per transaction to credit card providers. License plates renewal fees are set by state statute and the office is, by law, unable to absorb the cost of the additional provider fee.

So, there is no way to get a better deal for the drivers?  As a state, Illinois cannot leverage it's position to pursue some financial institutions to process the payments for lower fees?  All the financial processing is done electronically anyway.  What about the banks that Illinois is using to run the state?  Couldn't they provide the processing since they get business from the state?  Can someone explain this to me because I just don't get it.

Shall we have some fun with numbers?  There are 10.4 million vehicles registered in Illinois.  That number includes passenger cars, motorcycles, ect.  Lets say, half of the owners use Internet to renew their registrations.  That's $11,700,000 a year of our money going to the credit card companies.  And, that just registration.  For that kind of money, state could build their own payment network - ePayIL anyone?  


If you wonder if I renewed my sticker online - I did not.  I took my time and went to the local office and paid cash.  Why cash?  Because they also wanted to charge me 3% transaction fee.  Like the good old saying goes - cash is a king.