|
|
Gasoline - credit card connection
05-24-2007, 09:37 PM
|
#1
|
Full time employment: Posting here.
Join Date: Apr 2006
Posts: 897
|
Gasoline - credit card connection
This article confirms what I've long thought to be true.
JS Online: Running on empty
Quote:
Credit card companies and banks get an average of 2.75% on every gallon of gas sold, and credit card processing fees now rank as the second-biggest expense for gas station operators, according to the National Association of Convenience Stores.
|
Quote:
"Even at $3.59, I was making 15 cents, but I was still giving 10 of those cents to MasterCard," he said.
|
So, you're still paying for the convenience. People think they're getting 5% back, but aren't they really paying 7.25% and getting refunded the 5%?
-CC
__________________
"There's those thinkin' more or less, less is more, but if less is more, how you keepin' score?
It means for every point you make, your level drops. Kinda like you're startin' from the top..." "Society" - Eddie Vedder
|
|
|
|
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
05-24-2007, 11:34 PM
|
#2
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2005
Posts: 17,205
|
First, I think you math might be a bit off... if they average 2.75% then how is it 7.25% ?
But, let's use your number... here are my options...
The gas pump says $30... I can
Pay $30 in cash and the gas station makes more money
Pay$30 on a CC with no rebate and the bank makes more money
Pay $30 on a CC with a 5% rebate and I get back $1.50...
None of the options is to pay 7.25% less so the CC company doesn't get the money.. I will have to pay the $30 no matter what the fee...
|
|
|
05-25-2007, 12:04 AM
|
#3
|
Thinks s/he gets paid by the post
Join Date: Dec 2005
Posts: 1,228
|
What's annoying about all this is that electronic transactions (e.g. credit card, debit card) probably have a much lower overall handling cost than cash (which requires people to physically move it around from store to bank with high security). The only reason credit costs more is because the credit card companies have a monopoly on providing that service. But as long as there is the market inefficiency that keeps credit card transactions costing the same as cash at most gas stations, I'll keep taking advantage by using credit cards and getting my 1% cash back.
|
|
|
05-25-2007, 04:30 AM
|
#4
|
Full time employment: Posting here.
Join Date: Aug 2006
Location: Columbus
Posts: 769
|
Add another twist to the scam by the credit card people. Last week I filled up and the pump stopped by itself at $50. I looked at the readout and it said "Authorization Limit Reached". WTF?
Then I noticed a small sticker that said Visa had a $50 authorization limit on gas purchases and Mastercard had a $75 limit. If you wanted more gas you had to swipe your card again and start all over.
The little sticker also said it was credit card company policy not the stations. Looks like another was to get a few more cents in transaction fees.
|
|
|
05-25-2007, 06:10 AM
|
#5
|
Thinks s/he gets paid by the post
Join Date: Mar 2006
Location: Houston
Posts: 2,155
|
Long time ago (10, 15 years?), you either get a discount for using cash or get a surcharge for using credit. Now everyone pays the surcharge! Can we really blame the CC companies? Or ourselves? We bought the product, we made it pervasive, we made it a necessity.
My question is how much the existence of CCs really cost the consumer? I'm thinking 2% for almost all purchases.
|
|
|
05-25-2007, 06:12 AM
|
#6
|
Thinks s/he gets paid by the post
Join Date: Jun 2006
Location: Central, Ohio, USA
Posts: 2,635
|
UncleHoney: What state was that in? My last purchase for my Guzzler was $52.40 on a VISA care in OH -- no problem (except that was ONLY 17 Gallons of Gas).
__________________
Vietnam Veteran, CW4 USA, Retired 1979
|
|
|
05-25-2007, 06:14 AM
|
#7
|
Thinks s/he gets paid by the post
Join Date: Jun 2006
Location: Central, Ohio, USA
Posts: 2,635
|
Sam: I can't figure that one out--if I pay $5 Cash or put $5 on the credit card my cost is still $5 (where did the surcharge get added on?).
__________________
Vietnam Veteran, CW4 USA, Retired 1979
|
|
|
05-25-2007, 06:44 AM
|
#8
|
Full time employment: Posting here.
Join Date: Aug 2006
Location: Columbus
Posts: 769
|
Quote:
Originally Posted by R Wood
UncleHoney: What state was that in? My last purchase for my Guzzler was $52.40 on a VISA care in OH -- no problem (except that was ONLY 17 Gallons of Gas).
|
It was in Ohio too, Columbus. Maybe it's station specific, it was a Speedway station. I haven't heard of anyone else having this happen.
UH
|
|
|
05-25-2007, 06:52 AM
|
#9
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2003
Posts: 5,105
|
Quote:
Originally Posted by Sam
Long time ago (10, 15 years?), you either get a discount for using cash or get a surcharge for using credit. Now everyone pays the surcharge! Can we really blame the CC companies? Or ourselves? We bought the product, we made it pervasive, we made it a necessity.
My question is how much the existence of CCs really cost the consumer? I'm thinking 2% for almost all purchases.
|
It was probably more like 25 to 30 years ago that you were able to get discount for not using a credit card. The practiced was outlawed by our government. Do you think the credit card companies pushed for it
Yes - we the public are ultimately paying the credit card transactions cost or to put it another way - we are paying for the cc industry costs and profit.
I think most businesses factor in cc costs into their pricing structure.
Finally, studies have shown that people purchase more when they use cc rather than cash.
__________________
Sometimes death is not as tragic as not knowing how to live. This man knew how to live--and how to make others glad they were living. - Jack Benny at Nat King Cole's funeral
|
|
|
05-25-2007, 07:04 AM
|
#10
|
Thinks s/he gets paid by the post
Join Date: Feb 2004
Posts: 2,670
|
Quote:
Originally Posted by R Wood
Sam: I can't figure that one out--if I pay $5 Cash or put $5 on the credit card my cost is still $5 (where did the surcharge get added on?).
|
You are paying a built-in surcharge. There is a cost for the convenience of using a credit card that everyone pays at this point in almost all purchases.
Even cash has a cost associated with it. In order for you to use cash, you must pay taxes for the government to print your cash.
Nothing is free in this world.
__________________
No man is free who is not master of himself. --- Epictetus
Enjoy Yourself (It's Later Than You Think). --- Guy Lombardo
|
|
|
05-25-2007, 07:53 AM
|
#11
|
Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 2,450
|
__________________
- Hurry! to the cliffs of insanity!
|
|
|
05-25-2007, 08:02 AM
|
#12
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2006
Posts: 12,880
|
I wanted to pay tuition by credit card so that I could get 1% back. But TuitionPay.com wanted a 3% surcharge. I told them that's not allowed, and reported them to the credit card company, but nothing came of it.
|
|
|
05-25-2007, 08:07 AM
|
#13
|
Thinks s/he gets paid by the post
Join Date: Mar 2006
Location: Houston
Posts: 2,155
|
Quote:
Originally Posted by R Wood
Sam: I can't figure that one out--if I pay $5 Cash or put $5 on the credit card my cost is still $5 (where did the surcharge get added on?).
|
R Wood, you're paying the surcharge either way. In other words, the retailer is already making the assumption that would be paying by credit card, and pricing the merchandise accordingly.
|
|
|
05-25-2007, 08:10 AM
|
#14
|
Thinks s/he gets paid by the post
Join Date: Mar 2006
Location: Houston
Posts: 2,155
|
Quote:
Outlawed? Can you point me to that law?
If it were outlawed, I'd be able to pay for my car using the CC, TAl would be able to pay his daughter's tuition using the CC, etc...
|
|
|
05-25-2007, 08:35 AM
|
#15
|
Recycles dryer sheets
Join Date: Oct 2005
Posts: 325
|
Quote:
Originally Posted by Sam
Outlawed? Can you point me to that law?
If it were outlawed, I'd be able to pay for my car using the CC, TAl would be able to pay his daughter's tuition using the CC, etc...
|
I do believe it is in most folks mastercard/visa business agreement. Perhaps car dealerships and the like strike that from the agreement or choose to ignore it.
|
|
|
05-25-2007, 08:36 AM
|
#16
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2003
Posts: 5,105
|
Quote:
Originally Posted by Sam
Outlawed? Can you point me to that law?
If it were outlawed, I'd be able to pay for my car using the CC, TAl would be able to pay his daughter's tuition using the CC, etc...
|
I'll have to do some internet research.
Re: car and tuition - in order to get around the law the Car Dealer (seller not repair dept.) or University may not actually have a cc company relationship. The company that wanted the 3% might have been an intermediary that you paid and then they paid the university.
__________________
Sometimes death is not as tragic as not knowing how to live. This man knew how to live--and how to make others glad they were living. - Jack Benny at Nat King Cole's funeral
|
|
|
05-25-2007, 08:59 AM
|
#18
|
Full time employment: Posting here.
Join Date: Aug 2006
Location: Columbus
Posts: 769
|
Quote:
Originally Posted by dex
|
We just ordered some furniture and the options were
1 in-house financing
2 less 5% credit card
3 less 7% cash
Saved a bunch using good old green money.
|
|
|
05-25-2007, 09:32 AM
|
#19
|
Thinks s/he gets paid by the post
Join Date: Jun 2006
Location: Central, Ohio, USA
Posts: 2,635
|
Lots of Government entities will surcharge a payment by CC. Just try to pay your RE taxes by CC, IRS Taxes by CC, State Taxes by CC. So since as has been said everyone up-charges on the assumption your will be paying by CC aren't you getting a DISCOUNT when paying those entities via ACH, Check Debit or some other means EXCEPT CC?
__________________
Vietnam Veteran, CW4 USA, Retired 1979
|
|
|
05-25-2007, 09:37 AM
|
#20
|
Thinks s/he gets paid by the post
Join Date: Jun 2006
Location: Central, Ohio, USA
Posts: 2,635
|
Quote:
Originally Posted by UncleHoney
We just ordered some furniture and the options were
1 in-house financing
2 less 5% credit card
3 less 7% cash
Saved a bunch using good old green money.
|
So Uncle Honey you have been over to Kittles again (just a guess). It took me about 10 minutes to read the big chart they have on all of the ways they will sell stuff this holiday weekend. I just wonder what the real cost is. By the way the cash price IS NOT the least they will accept as I got an item even cheaper last year after offering to cancel an order and buy it from some other firm.
__________________
Vietnam Veteran, CW4 USA, Retired 1979
|
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
|
Display Modes |
Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|