Credit Cards and Gas Prices
Jun 9, 2008
We’re all paying record prices for gas, but if you think the guy behind
the register is cleaning up, think again. The high prices are actually cutting into most gas stations’ profit margin.
Credit card fees are based on price, not gallons. So when the price of
gas goes up, so do the processing fees. Station owner Charlie Rooney
says the fees make it hard to turn a profit.
“Ironically, the higher the price of gas goes, the more people turn to
the credit card, which in turn makes higher fees.”
The fee on this card is two percent. The fee on this one, as high as
three. Which explains why not everyone takes every card.
Eight of every ten gas purchases are made with a credit card. So as the price climbs, more stations are beginning to offer a discount of a
nickel or more per gallon if you pay cash. Motorists filling up liked
the idea.
“I’d like to save as much as I can. It’s really expensive.”
“That would be a good thing. I just put in 50 dollars. That’s 12 gallons.”
Jim Smith of the petroleum Marketers Association says more stations will soon be offering cash discounts.
“The average retailer is around 9.8 cents gross profit per gallon. And
if they’re giving 8 cents to the credit card company, that’s 1.8 cents a
gallon gross profit, which they’re trying to make their living with and
that doesn’t work.”
Some of major gas chains frown on cash discounts, but for some stations and motorists, they may be the only means of survival.
State law does allow cash discounts, but it requires the
discounts to be clearly posted in letters at least 4 inches high.
News Source : http://www.wjhg.com/ |
