That's the sign that is beginning to appear at some gas stations across the country as the price of gas continues to climb. Convenient store owners say they are seeing what little profit they make on gas going to credit card companies which charges an interchange fee on every transaction. As the price of goods and services go up the dollar amount fee goes as well, making it harder for store owners to offer the convenience of using a credit card. Gas stations pay a 10 to 12 percent flat fee on every transaction on top of the percentage rate paid on interchange fees, leaving store owners to pay credit card companies in many cases more than they make.
Some stores are now beginning to offer cash discounts to customers who pay with cash. Customers who are paying in cash can receive from four to ten cents per gallon. Another cheaper alternative is using a debit card which has less fees associated with it's use.
Credit card companies show no signs of changing their ways as Visa says that the fees are offset by the benefits to the stations and customers by being able to pay at the pump. Or in other words, your loss is our gain. MasterCard has made a somewhat feeble attempt by capping the interchange fees on gas purchases of $50 dollars or more. Many store owners are afraid they will lose customers if they do away with credit card purchases, so they continue to struggle as they look for alternatives. That is exactly what credit card companies are banking on. While paying in cash may not be a good alternative for some, neither is watching credit card companies thrive as gas station owners place "out of business" signs on their door.