Credit card fees: Some gas stations say 'no more'

[x635 4,066]

This is ridiculous. Some people, with gas prices nowadays, NEED to put gas on a credit card!!

Credit card fees: Some gas stations say 'no more'

By TOM BREEN, Associated Press Writer

Wed Jun 18, 1:28 PM ET

When gas station manager Roger Randolph realized it was costing him money each time someone filled up with $4-a-gallon gas, he hung a sign on his pumps: "No more credit cards."

He may be the first in West Virginia to ban plastic, but gas station operators nationwide are reporting similar woes as higher prices translate into higher credit card fees the managers must pay, squeezing profits at the pump.

FULL STORY: http://news.yahoo.com/s/ap/20080618/ap_on_...es_credit_cards

[OoO 24]

That's crazy. I know I don't carry around enough cash to fill up my tank and then have money leftover.

Edited June 19, 2008 by OoO

[JetPhoto 626]

That's crazy. I know I don't carry around enough cash to fill up my tank and then have money leftover.

Hi, I'm Mr. Thief, I know you have to have cash only to get gas here so I'm going to sit back and wait for you to come get your gas then mug you before you pay.

Or

Hi Mr Station owner, I know your loaded now, hand it over.

[Goose 188]

Cry me a river. You've got us by the family jewels one way or another because it's not like the need for gas is going to disappear overnight. I'll keep using good ol' Amex and would take my business elsewhere if the local stations stopped accepting.

What the hell is this country turning into?!

[CAM502 6]

Funny you mention Amex...some of the NR stations won't take it cause they charge a higher fee then the other CC companies. Wouldn't be surprised if it goes back to Cash=Price A and CC=Price B (which was like twenty cents more or something) like it used to be.

[50-65 205]

In the winter I work for a company delivering home heating oil. When people pay with a CC, the card company makes more than the owner.

For those of you who heat with oil and haven't bought any lately, it is very close to $5.00/gal.

[Guest MVFD334]

From a business owners end, you lose money with credit cards. AMEX is the biggest thief of them all. And if you take a basic 2% charge add that by $75 in gas and times that by 300?? per day, that is alot of money wasted because someone dosent have cash on them.

[OoO 24]

Funny you mention Amex...some of the NR stations won't take it cause they charge a higher fee then the other CC companies. Wouldn't be surprised if it goes back to Cash=Price A and CC=Price B (which was like twenty cents more or something) like it used to be.

All of the major credit card companies prohibit merchants from charging a fee for using a credit card vs cash.

[SageVigiles 1,194]

Connecticut is allowing gas stations to give a discount for cash-only gas purchases. I'm a cash businessman myself, so I'm estatic about this... Cash is king!

[Guest]

I don't think gas stations make much of a profit on fuel anymore- that's why conveinence stores, car washes, and the like are becoming so prevalent at every station.

[joetnymedic 43]

Funny you mention Amex...some of the NR stations won't take it cause they charge a higher fee then the other CC companies. Wouldn't be surprised if it goes back to Cash=Price A and CC=Price B (which was like twenty cents more or something) like it used to be.

actually CT just passed a law for the two seperate gas prices. funny thing is they are calling the thing a gas discount - which all in all it isn't. they aren't really discounting the gas, they are just passing the card fees on to those who use credit.

Joe

BTW paid $4.29 a gal. here in West Haven today. Most places are $4.39-$4.78 for regular. This is friggin ridiculous. Get ready boys, with the way things are going, I think we're going to wind up giving the depression from the 40's a run for the money eventually. Oh and I just read something the other day - the UK after you convert prices to US is paying over 17 bucks a gal. now that has to suck.

[x635 4,066]

In the UK, they wrap up taxes into the gas prices. That's why they drive smaller and more fuel efficient vehicles over there.

I see cash as the gas station owner's excuse to pocket more money....I'm positive that at some stations some of the "cash transactions" don't get reported. Some of the major brands base the stations profit off a percentage system, meaning now the owners of the stations are getting a higher percentage, meaning more profit.

The only good thing I see about gas prices being high is that it's going to force people to look for alternative energy and transportation sources. However, it drives up the price of everything else, which has a devastating effect on the economy. Meanwhile, the oil industry is making record profit, and getting 17 billion in tax cuts. Maybe it's time we put a cap on gas prices.

My country invaded Iraq and all I got were these high oil prices.

[joetnymedic 43]

Guess we were running out of gas in 1998 - take a read, and wow look at those high prices (definately sarcasm there)

http://www.sfgate.com/cgi-bin/article.cgi?...31/NEWS8788.dtl

[CAM502 6]

My country invaded Iraq and all I got were these high oil prices.

Yeah cause that is the reason.

Unregulated speculators maybe???

[TRUCK6018 50]

The argument the manager makes doesn't make sense. The intercharge is a percentage of sales the CC company collects. Since it's a percentage, how is he losing more money based on the higher price per gallon?

The article states that $4/gallon calculates to a fee of 8 cents per gallon (based on 2%). Because it's based on a percentage, that means if the gas was $2/gallon he'd pay 4 cents per gallon.

Let's go one further:

50 gallons of gas @ $4.00/gallon = $200.00 $200 x 2% = $4.00 fee paid for that sale.

Another one:

100 gallons of gas @ $2.00/gallon = $200.00 $200 x 2% = $4.00 fee paid for that sale.

The point I'm trying to make is REGARDLESS of the price per gallon, the sum of the gross sale will equal the same fee.

Edited June 25, 2008 by TRUCK6018

[Guest MVFD334]

The argument the manager makes doesn't make sense. The intercharge is a percentage of sales the CC company collects. Since it's a percentage, how is he losing more money based on the higher price per gallon?

The article states that $4/gallon calculates to a fee of 8 cents per gallon (based on 2%). Because it's based on a percentage, that means if the gas was $2/gallon he'd pay 4 cents per gallon.

Let's go one further:

50 gallons of gas @ $4.00/gallon = $200.00 $200 x 2% = $4.00 fee paid for that sale.

Another one:

100 gallons of gas @ $2.00/gallon = $200.00 $200 x 2% = $4.00 fee paid for that sale.

The point I'm trying to make is REGARDLESS of the price per gallon, the sum of the gross sale will equal the same fee.

I have a family member that owns a Mobil On the Run Station.. Im gonna get some quik breakdown numbers from him on a gallon of reg gas, its cost, its profit, and the fees that get taken from it. Then you will feel a real pain in your stomach. I'll even have him give me the DEC/EPA/NYS bs that goes along with it.

[TRUCK6018 50]

I have a family member that owns a Mobil On the Run Station.. Im gonna get some quik breakdown numbers from him on a gallon of reg gas, its cost, its profit, and the fees that get taken from it. Then you will feel a real pain in your stomach. I'll even have him give me the DEC/EPA/NYS bs that goes along with it.

I understand that once the cost of the gasoline, taxes and fees are paid there isn't much left for profit. Shouldn't the profit margin stay the same as it was years ago?

[DR104 141]

Well the Shell on North B'way in North White is charging more for using a credit card. Must have just started. He always had the cheepest price around and long lines, but what i saw driving down B'way not anymore. Also the large sign with the prices on them are for cash price only. It is printed in small letters on the top.cash price.So if you are driving by and you se that pull in with CC in hand, surprise!!! !10 cent more a gallon buddy!!!If the oweners claim that they have to pay so much in fees to the CC companys then why are we hearing about it now!!I think it been 10 years since I have seen the Cash, Credit card price. No more Shell for me.

Edited June 28, 2008 by DR104

[Guest]

dr104, i took this pic a few days ago at the shell

the prices on top are for cash and the prices on the bottom are for credit cards. people who use credit cards are getting screwed and might not even know it

Edited July 7, 2008 by vacguy

[smwells 7]

Even worse, some of these stations jacked up the price before adding the 10-12 cent CC surcharges..

"Mr station owner: I am sorry that your profit margin sucks these days.. but the guy down the street is charging less with no surcharge" SEE YA !!!!

[ny10570 745]

4.289 per gallon credit card full service. Gulf on White Plains Rd just north of Pelham pkwy