RBS WorldPay Inc. has announced that it and Value Payment Systems LLC will begin processing consumer and business tax payments for the Internal Revenue Service on Jan. 1 under a multiyear contract.

Taxpayers in January will be able to make payments to the IRS using credit and debit cards and other payment methods through a Web site or by calling a telephone number, said RBS WorldPay, Royal Bank of Scotland Group's Atlanta processing unit.

"Government payment processing is a high-growth business," Ian Stuttard, RBS WorldPay's president and chief executive, said in a press release Tuesday.

Taxpayers will pay a fee of 1.95% of the transaction total for credit card payments or a flat fee of $3.89 for debit payments, said Ian Drysdale, RBS WorldPay's senior vice president of market development.

The processing unit is working with Value Payment Systems, a Nashville provider of electronic payment products and services, in part because of the latter's experience in managing government payments, he said.

Two other processors — the Official Payments Corp. unit of Tier Technologies Inc. in Reston, Va., and the Link2Gov Corp. unit of Metavante Technologies Inc. in Milwaukee — also supply electronic payment services to the IRS. Official Payments charges a fee of 2.39%, and Link2Gov charges a 2.35%, fee according to the Treasury Department.