Gas Station Owners Fight Against "Swipe Fees"

By: Capitol News Service Email
By: Capitol News Service Email

High gas prices aren't just hurting Florida Drivers. Small businesses, like gas stations, have joined forces to take on credit card companies over a little known “swipe fee.”

Businesses are charged extra when a customer pays with a credit card. The fees cost some businesses nearly as much money as they pay their entire staff.

Jim Smith is a spokesman for the Florida Petroleum Marketers Association representing gas station across the state. Smith said when customers pay at the pump credit card companies end up with a bigger share of the profit than the station’s owner.

“The average retailer is making about nine cents and it cost them 6 cents to take a credit card on a gallon of gas, so their profits are now cut by two-thirds,” said Smith.

Small Business owners are supporting a push in Congress to lower the “Swipe Fee,” and bring the charges into the light.

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  • by Kimo Location: California on Jun 9, 2009 at 02:15 PM
    In a credit card purchase, there are two fees a retailer pays for the transaction. One is the transaction fee and two is the sale fee. For example a transaction fee of 45 cents and a sale fee of 2.5% of the sum total of the purchase. So a $50 purchase in this example cost the retailer 3.4% of the sale. Let's say gasoline is $4.00 per gallon, so $50.00 buys 12.5 gallons and the retailer or station owner has a 10 cent a gallon gross profit and earns $1.25 profit on the sale yet his cost to the card company is $1.70, so the loss is 45 cents on that sale. So, why are gas station dealers outraged, wouldn't you be too? Anon Location believes credit disapearing, apparently he/she doesn't understand that credit card companies get paid twice for the transaction, once by the retailer and second by the purchaser, so as long as the government allows this to occur, credit will never disappear. Kimo Jarrett
  • by native Location: n fla on Jun 9, 2009 at 12:43 PM
    Is anyone sure some of these merchants are not "passing on" this extra fee to the customers. It would be simple to add another cent or two to every item in the store and recover the "loss" from all cash AND credit customers. In the end - the banks,corporations and merchants will come out OK,,,,the public and citizens will be the ones to loose, they are making sure of that already.
  • by Anonymous on Jun 8, 2009 at 06:42 PM
    I'm surprised they (cc co) don't charge a fee to process the fee they charge!
  • by I've noticed Location: tally on Jun 8, 2009 at 04:10 PM
    Our illustrious leader has cracked down on banks to regulate credit cards. There is nothing wrong with the process they had in place before. It's not my problem that folks can't be responsible and live within their means. I will agree that the fineprint on CC applications takes a doctorate in finance to understand; however, pay your bill at the end of the month and the fineprint doesn't mean crap! Eventually, the only people paying with plastic will be people on govt assistance and your milk will still be $5/gallon. BTW, that's not credit, it's free money and there is a limit. Everyone else will be walking around with hundreds of dollars in their pockets looking like a "sweet" target to some low-life thug. Just remember "sweet targets" carry "big guns".
  • by anon Location: anon on Jun 8, 2009 at 03:31 PM
    I see credit disappearing...especially to the middle class. Why would any corporation leverage their assets to folks who can't balance a checkbook or live within their means??? It's a losing proposition.
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