Pay CASH for Gas! CC companies making extra $18m A DAY

[Atman]

Just saw this on CNN...pretty sure I got that $18,000,000/day figure correct; did anyone else hear it and can confirm that?

As a result of the exhorbitant gas prices, their 2% fee is swamping them with extra money. Another BushCo contributor reaps a windfall!

Pay cash for gas and don't let the profiteers make billions off of people's suffering.

[bleedingheart]

1. I pay off the balance every month so I use the card but they

gain no interest.

[Atman]

2. It's not the interest...it's their transaction fee

2% of a the cost of a fill-up, which has nearly doubled in price.

[NaturalHigh]

4. I make it a point to never have to pay interest on CC...

but I forgot about the transaction fee. Good post, and thanks for pointing this out.

[bleedingheart]

19. I use the card so I can keep track of how much we are spending

my husband and I make a point not to carry too much cash...funny thing about carrying cash is that sometimes it disappears without knowing just what you spent it on..

[TheFarseer]

3. I'd be afraid to carry that much cash on me! n/t

[question everything]

28. Yes, my reaction

and for me it would be "only" $38... what about all the SUVs that probably now are paying $100? (not that I feel sorry for them, though)

[DemocratSinceBirth]

5. If You Pay Cash You Have To Go In The Store

and wait in line for people buying lottery tickets...

[newportdadde]

14. and cigs and booze.

[Atman]

15. Oh, in that case, send the credit card companies more money

We wouldn't want to inconvenience anyone. The welfare of the bloodsuckers is far more important.

:eyes:

[DemocratSinceBirth]

18. The Gas Companies Make Their Real Money When You Come In The Store

by selling you a can of coke that cost them 25 cents to buy for 99 cents....


That's a four hundred percent profit.....

[Freddie Stubbs]

25. Use a debit card

[DemocratSinceBirth]

27. Scroll Down

Debit cards use the same mark up procedure...

[cyberpj]

6. YES. This article in our Sunday paper said same. CC xaction fees=windfall

(snip...)

Credit card industry gobbles up percentage

Another big winner is the credit card industry. Major credit card companies are reaping huge profits from rising gas prices because the fee that banks charge gas stations to process a credit card transaction is based on a percentage of the purchase price. As gas prices go up, the processing fee goes up.

Since last year, the fees that gas stations paid to credit card companies have risen 64 percent, right along with the price of gasoline.

"It's unexpected revenue, because people are just doing what they were always doing," said David Robertson, publisher of the Nilson Report, a credit card industry newsletter.

http://www.delawareonline.com/apps/pbcs.dll/article?AID=/20050925/BUSINESS/509250354/1003

On edit: Nominated - thanks for bringing it up. I w/stop using creditcards at the pump - thankfully I own a 2002 Prius and don't visit them all that often these days.

[cyberpj]

13. More details here... the stations have to pay the CC 'processing fees'

On a typical day, Americans buy 382 million gallons of gasoline, according to the federal Energy Information Administration. About 70 percent of that is paid for by credit card, said several trade associations representing gas stations. The credit card processing fees paid by gas stations, meanwhile, average about 2.5 percent, these trade groups agree.

So a year ago, when gas prices averaged $1.87, banks involved in credit card processing made about $12.5 million a day on fees. Now, with prices averaging $2.75 nationally, the credit card companies are raking in $18.4 million a day. That is $183 million more a month, or nearly $2.2 billion dollars annually.

"The credit card processors and banks are reaping enormous profits right now," said Paul Fiore, director of government affairs for the Washington, Maryland, Delaware Service Station & Automotive Repair Association.

[Skidmore]

7. Things I NEVER put on a CC, except in an emergency:

groceries
gas
anything for maintenance of the car (barring large repairs we can't fix ourselves) like oil, filters, etc.
OTCs

[Jim__]

8. If the CC companies don't get the money, ...

doesn't that mean the oil companies get it? Doesn't the transaction fee come off the top, so, if you pay $3.00 for a gallon of gas, the credit cardcompany sends the station $2.96/gallon? So, either the Credit Card company or the oil company gets the money.

You could argue that if no one used their credit card, then the price of gas would drop by 2%; but, I'm not convinced that that's true.

[cyberpj]

12. who said the CC companies don't get the money? nt.

[AllegroRondo]

21. Thats true

if you buy $100 worth of stuff, the CC company pays the store around $98.

But - most stores are willing to do this to avoid dealing with cash and checks. It costs much more than 2% to handle cash and checks - considering counting, transportation, security, and clearance.

The bottom line - if everyone were to stop using CCs for gas, the CC companies would lose money, true, but it would just go to banks, security, and check clearance companies instead.

[cyberpj]

32. Oh. 'Doh! I GET IT NOW. So the question becomes - How can I,

me personally, keep that 2% ?

No way, right? It's rigged that way?

[Kelvin Mace]

9. Actually, it is worse than that...

CC companies are now seriously driving up the price of gas.

Gas stations are having to dramatically raise their markup in order to cover credit card fees. Most stations markup a few pennies per gallon, then turn to snacks, soda, etc for real markup. When gas was $1.50 a gallon and you bought 10 gallons, the CC fee was $0.30, so the station had to mark gas up $.04-$.05 cents per gallon to pay the fee and make a profit. With gas at $3.00, the bite is now $0.60 for the same ten gallons, requiring a markup of at least $.07 cents to make a profit. The dealer had to almost double his markup while getting nothing in return. As gas goes up further, the markup will get bigger to keep the same meager profit.

[lcordero2]

10. don't own a car but thanks for the tip

I'll be taking out money from the ATM at every single opportunity now.

[Mandate My Ass]

11. Some are putting a $75 hold on your card without telling you

in addition to the cost of the gas you purchased. There was a thread about it here the other day but I forget which forum I read it in.

[MostlyLurks]

22. The hold has always been there, but not for $75.

The hold value used to be $30 or somewhere thereabouts.

The really horrifying part was that they'd leave the hold on until the actual amount was forwarded to the CC company, which could be a business day or two. So you might have spent 15 bucks to fill up, but there's a $15 hole in your account and...surprise...it's entirely possible to bounce a check during that period, if you happen to run your checking account close to a zero balance. I know, I've done it. I'd be 100% certain the same problem exists today (and is exacerbated by an increased hold beyond the $30 I mentioned above).

Mostly

on edit: corrected typo in subject line.

[54anickel]

16. Hubby gets 5 percent reward back, so he always uses CC for gas.

His card offers 5 percent reward back on gas, grocery and drug purchases (up to either $250 or $500 per year). He only uses it for gas though - pays at the pump.

He had a Union Plus CC before this one that stated in the fine print what they meant by "up to 5%", it was a rip-off as his reward balance never matched his figures. When he called they explained the "rules" (depended on the size of the purchase, balance outstanding, blah, blah, blah). The CC he has now matches his figures. He has always paid the balance off every month. Uses it for convenience and now for cash back rewards.

There's no way he would stop using it until he maxes out the rewards on it. Although when he got it he said he'd stop using it for the year if he used up the cash-back allowance.

[MadHound]

17. Pay with cash, check or debit card for everything

It is one of the more interesting ironies of our society that people whine and moan about how CC companies are screwing over this country, yet still go out and charge things. I don't care if you pay off your balance every month, you are still feeding the beast when you use plastic, for CC companies continue to make money off of annual fees to the card-holder, and also from service fees charged to the business that allows CC use.

It is time to starve the beast. Cut up those cards, refuse to use them. Pay off your balance and go to a cash, check and debit card only economy. I've never had a credit card, and have never had any problems. Sure you sacrifice some convience and speed, but hey, you're not feeding the beast and once you learn to think ahead, a slower pace will not matter.

If you want the CC companies gone, if you're tired of their usurious practices, then cut up your cards, pay off the balance, and refuse to feed the beast any more. You'll be glad you did.

[NMDemDist2]

20. debit cards have the same fees as credit cards to the merchant

cash is the only way to starve the beast

[MadHound]

23. OK, cool, I didn't know that

Being that all I use is cash or check. If debit cards are being charged the fees as CC, then drop that plastic also.

Another great benefit of going to cash only is that it forces you to budget your money, and even build up a little cushion for emergencies. Too many people spend recklessly, knowing that they have the plastic to catch their back when they go beyond their means. This is how we wind up with the average American owing $10,000 in credit card debt.

[WildClarySage]

30. If a signature is given to authenticate the purchase then the charge is

the same with a debit card as with a credit card, but if a PIN number is used, the transaction charge is somewhat lower.

[all.of.me]

24. good point. i don't use cc's - i'm a cash girl all the way.

[justiceischeap]

26. Does this work the same for Debit Cards? (eom)

[MostlyLurks]

29. According to post 20, yes. n/t

[cyberpj]

31. i was just wondering that m'self. nt.

[NMDemDist2]

33. if it has a Visa/MC logo on it yes, but anytime you use plastic the bank

gets a piece. how big a piece depends on a lot of things

[Rainscents]

34. I very seldem use debit card. I use cash to buy gas!

[northzax]

35. cash isn't that much better

it costs money to handle cash and get it to the bank, as well as the increased risk of theft. believe me, as a former retailer, I prefered cards for amounts over about ten bucks, it was safer and easier, as well as cheaper, in the long run.