OT: What do you think about "Credit Card Gas Prices?"

[Thomas Rogers]

John and Marsha said:

here is Alaska it is against the law to pass the credit card fees on to your customers

I am sure that's not exactly the wording of the law, because no matter how you slice it, if a merchant allows credit card payments they ARE passing the credit card fees to the customer one way or another.



Which is kind of my point, and the loop hole I hear that some use to get around such laws. They simply state that paying with cash provides a "discount."



Again, it seems to me that a responsible, customer-friendly merchant would simply figure out the price to charge for ALL people, assuming a certain percentage will pay with CC and what those associated fees will be.



TJR

 

[Kerry Matthews]

I use ARCO-AM/PM for gas, and they've had a .45 debit card fee forever... (They don't accept CC's)

 

[Les]

TJR

I'm sure that is how prices have been determined in the past. I believe the cash discount is now being resurrected because as people drive less, your gross income will be reduced unless you are able to increase market share. So by offering a cash discount you hope to increase your market share by gaining new customers, thus keeping, or improving your gross income...

 

[Thomas Rogers]

Les,



Now that makes sense. Trying to create a "new customer" and market of those that are willing to pay with cash and enjoy a discount for it; assuming that many will line up for this offer now that gas is so expensive.



TJR

 

[Brett Deroche]

the reason for the differences in pricing is because credit card company's are charging gas stations to much. there is a ten cent transaction fee then they charge 2 cents for each gallon plus in louisiana with a 38.4 cent tax on the gas from state and federal gas stations dont make much at all on gas

 

[Martin]

We don't have those kind of stations around me yet, but if my station starts doin the credit card vers cash thing....they will be loosing my business.

 

[Kevin Palmer]

My brother in law owns an oil company and SEVERAL stations.



Though he does well through his main oil company, the profit margin from the stations has dropped significantly. He still makes money, but no where near what he made a few years back.



When I say several, I am talking something like 75 private stations. So he does not need to make a bundle as he has a decent amount of income when it is combined.



But yes, the profit margin has gotten tighter...

 

[Shelby Crane]

you should check with your local laws, here is Alaska is it against the law to pass the credit card fees on to your customers, and any company found to do that stands to loose it privileges to accept credit cards. i know this because that is what we were told when we started accepting cards at our restaurant.

The VISA/MASTERCARD vendor statement does not allow a vendor to charge a customer fees for use of the card.



What they mean to say is: You can not make it evident that you are passing the fees to the customer. You can give a discount for a "cash price" but you can not say "I'm going to charge you more if you use MC/VISA."

 

[Gerald Pierce]

read an article along this line about a week or so ago, article said $.04/gal profit margin was the norm, my guess is the retailer is trying to avoid the CC % they must pay, and it has gone up since the price of gas has gone up.

I'm just wondering, if there is a "standard" profit margin, how do 2 stations of the same brand less than a mile (or 1/2 or even 1/4 mile) charge sometimes up to .10 more a gallon? All the gas came out of the same distro center, often on the same truck.

 

[Martin]

Down the street from me, I've got an Exxon on one corner and a Mobil on the other. I've seen where they sometimes have their prices around 5-10 cents different than eachother. The same stations closer to the freeway seem to always be even higher. :wacko: