Cash or Credit?
There an interesting article on cash vs. credit at the fuel pump. Fees can vary significantly, but one gas station cited in the article pays 10 cents plus 2% for each customer filling up. The article goes on to mention Visa attempting to strong arm a station into using the term "regular" or "standard" to differentiate the higher "credit" price from the cash cost, state regulators got involved and Visa backed off.
We pay for the convenience, about 4.2 cents a gallon, but how many people are going to pay with cash? Sure there are some budget conscious folks, but especially if you're getting 5 cents a gallon rebate from your credit card, there is no incentive.
Full article here.
Thursday, August 23, 2007
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2 comments:
I think you're missing the point the article is trying to make. The interchange fee has become a real problem for merchants and consumers alike. Visa and Mastercard are laughing all the way to the bank.
Credit card companies make over $30 billion a year off these transaction fees and they cost families big time - hundreds of dollars a year. You can't blame gas stations for encouraging cash purchases. Visa and Mastercard have treated merchants poorly for years and we're fighting back, looking for a truly competitive and transparent environment.
Well, I have written previous articles on interchange fees
http://allcarsallthetime.blogspot.com/search?q=interchange
But the point of this post is, what is the incentive for the customer? I am aware that merchants are struggling with fees, but with Visa and Masercard offering honey drizzles rebate cards that make up the difference between cash/credit it's going to be some rough sledding for you.
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