BOZEMAN, Mont. (AP) — Montana State University is eliminating its $10 transaction fee assessed for online tuition payments in an effort to encourage more students to pay online.

Laura Humberger, assistant vice president of financial services for MSU, says it's the right thing to do for students. She says thousands of students have paid their tuition over the phone or in person to avoid the $10 fee.

As part of the change, MSU will no longer process credit card payments over the phone or through the mail.

During the 2011-12 academic year, MSU in Bozeman processed 8,852 tuition payments online and assessed $10 for each transaction, while it manually processed 19,420 credit card and check transactions.

MSU's campuses in Billings, Great Falls and Havre also will eliminate the $10 transaction fee effective July 1.