Quote:
Originally Posted by Ron61
It is going to be another humid, dusty day here. And I was just reading an article where some gas stations in West Virginia have stopped accepting credit cards to pay for gas and others in other states are looking for ways to do so. I didn't realize the credit card companies take a percentage of the gas sales and now with gas over $4 a gallon, the credit card fee the stations have to pay for each transaction is starting to be more than their profit on a gallon of gas. And the more people pay for gas, the more the card transaction fee is. Some stations are thinking about offering a few cents cut in what you have to pay if you pay in cash as they will still come out with some profit. It seems to me the credit card companies could just have a set transaction fee as it costs them the same to process a $20 dollar purchase as it does a $2,000 dollar one.
Ron  |
The CC companies charge a % fee for each transaction no matter where it is. I think they all now require that the business not pass that charge on to the customer. The problem with giving a discount for cash is that you are charging the CC customer more for the same product. Gets into a legal mess when your agreement with the CC company does not allow you to charge more to the credit card cusotmers. Some are worse than others. I believe the American Express Fees are the worst. That is why you see a lot of smaller companies will not take them.
Edit: Most consumers do not realize this. They think that the credit card companies are only making money on interest from them. But they are making money on both the sale and interest.