Secret To Lower Gas Prices May Lie In Credit Cards
Of course, we all know about the gas credit cards that offer a few cents off per gallon, “free” gas rewards, or some other such enticing offer. But a recent Washington Times editorial article suggests that the secret to lower gas prices may lie in credit cards for a completely different reason.
The Credit Card Fair Fee Act, a bill currently floating around the House of Representatives, would place restrictions on many of the so-called interchange fees imposed by credit card companies. According to the Post:
“Gasoline costs are particularly impacted because roughly two-thirds of all gas purchases are credit or debit transactions. But neither Visa or MasterCard will negotiate interchange fees. Because merchants fold their operating costs into retail prices, bank card charges increase customer costs.”
The Credit Card Fair Fee Act would require the credit card companies to negotiate, thus lowering or eliminating, the 1.75% fee companies must pay. I guess this explains why a local gas station owner advertises a significant discount for gas purchasers paying with cash.
May 19th, 2008 at 1:47 pm
[…] Home Based Business wrote an interesting post today onHere’s a quick excerptSecret To Lower Gas Prices May Lie In Credit Cards By Hayli Morrison May 19th, 2008 Posted in credit industry, credit card news, Credit Card Offers Of course, we all know about the gas credit cards that offer a few cents off per gallon, “free” gas rewards, or some other such enticing offer. But a recent Washington Times editorial article suggests that the secret to lower gas prices may lie in credit cards for a completely different reason. The Credit Card Fair Fee Act, a bill currently floa […]
June 6th, 2008 at 11:25 pm
[…] As if the credit card industry didn’t have enough money floating around. The latest tactic is to use credit card rewards to justify the exorbitant credit card interchange fees (basically, purchase fees assessed of merchants for consumer credit card usage). It’s a problem for merchants and they’re begging Capitol Hill for assistance. The U.S. House is finally responding with the Credit Card Fair Fees Act. […]