Posted on 05/15/2008 11:04:49 AM PDT by outfield
FBN 05/15/2008 08:03:42:
...average gasoline prices at the pump, $3.77 this morning, but it isn't the local gas station making a ton of money. this morning we're joined by mallory duncan merchants payments coalition welcome, mallory. tell us a little what's going on with that local gas station. everyone thinks because of prices of gasoline going higher these guys are making a lot more money, is that necessarily the case?
Higher resource costs inevitably reduce sales volumes with tighter margins and typically yields lower net.
I finally figured out how to avoid those irritating fees. I cut up all my credit cards and will never use them again. Works every time.
The article is about how everyone pays the credit card price for gas now.
As opposed to when there was also a “cash” price.
Now why is Congress having hearings about this at all? I don't see it anywhere in the Article I Section 8 powers given to Congress.
I believe Florida still has stations that give a cash/ATM and credit card price.
I actually have seen a lot of gas stations in this area advertising a 3-5 cent discount per gallon of diesel if you pay with cash. I have yet to see it with regular unleaded.
I think the Commerce Clause puts this under the purview of Congress. And part of the question here is whether or not Visa and MasterCard are colluding to set the fee — essentially, whether they are price-fixing. It is difficult to know if this is actually happening, because there is so little transparency. Hence the hearings. Could be very interesting.
I had a debit card for 3 years, that worked fine- when I ran out of money it would stop working... I DID NOT apply for an overdraft privilege, because it worked fine this way and let me know when I was out of money...
The bank, without my permission, changed the overdraft allowance to $1500.
The next week I went to McD’s, A local market, etc. etc and made several purchases less than $20 (and McD’s was only $5)
They hit me with a $35 DOLLAR OVERDRAFT PENALY FOR EACH OF TEN TRANSACTIONS. The total spent was $120, and the fees were $450.
And this happened for over TWO WEEKS until I got my next bill, charging an additional overdraft charge EVERY 5 DAYS “until my account balance was brought to $0”
I was FURIOUS and called them to explain I WOULD NOT be paying any fees and to cancel the account! I asked them how was I supposed to know the balance was below 0 for 5 days until I get a new bill- I travel for work and was not even home for 2 weeks.
The told me they could not cancel the account with a negative balance, and I told them I would NOT be paying the charges incurred when they arbitrarily changed my account setup.
Through shear stupid bad luck a vendor credited me for a refund and they applied it to me credit card (the same account) and I never got that money back...
I closed every account except for one visa card and I am nearly back to doing every thing by cash.
Heard on the radio earlier this week, if gas goes above $4, find stations with older pumps that can’t go above $3.99.
I am in the merchant services business. So what, now congress is going to mandate the rates I can set?
We consistently use our Discover Card for gasoline purchases, as it pays a 5% Cashback Bonus for fuel (as well as miscellaneous auto services and repairs). And since we pay off the bill in full each month, so that there is no accrued interest, it works nicely.
No, the bill under consideration doesn’t call for that at all. The big issue has been that Visa and MasterCard won’t even sit down at the table to negotiate with merchant groups. Why are they afraid of even talking?
Of course the gas stations are making a ton of money! Since the price has been goina ONLY up, they make an extra profit on every gallon in their storage tanks when they raise the retail price. This will continue ony as long as the prices rise. Once they stabilize their profits will stabilize and if the prices start to fall, then they will lose their profits as they have to sell at or below their costs. That is the main reason that prices are quick to rise, but slow to fall.
I don’t think that’s correct. Gas stations are getting squeezed — between the higher gas prices and the higher credit card fees. The oil companies are seeing bigger profits, to be sure. But your corner gas station is more than likely feeling the pinch just like you and me.
I can think of one station in Anchorage that still has (or did fairly recently) a cash discount.
The profits that they make are somewhat illusionary since they have to turn around and pay a higher price to refill their tanks, but if you fill your storage tank with gas when it is selling for 3.50, you assume that it cost you less than that. If you then go out and change your sign to sell for 3.59, you will be making an additional .09 per gallon which is an increase in profit no matter how you look at it.
When the truck pulls up to refill the tanks, you are going to be paying the higher cost, and possibly even higher than you sold part of your previous inventory for. So that would mean that you actually sold some of your inventory for less than replacement value. But in the past year wouldn’t you like to have had a few hundred thousand gallons at ‘last weeks’ cost to sell at today’s price?
That's because V/MC doesn't get the interchange, the issuing banks do.
If you required them to negotiate with merchants they would have to negotiate with 20,000 banks that issue the cards.
Visa/MC takes .095% and 10 cents per transaction and this is fixed. Visa alone has over 1000 employees to make sure federally mandated fraud controls are followed to protect the customer so now the Gov't wants them to do this for free or at a loss ?
One reason I don’t need credit cards anymore. Solved.
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