Saturday, August 26, 2006

What ever happened to cash discounts at the pump?

Yes, I know I'm behind the times a bit, but I am catching up. The other day I noticed we don't get those discounts at Enmark for paying cash for our gas.

So what happened with that?

I found a fact sheet from about nine months ago or so, which states:

* "The total cost of credit/debit fees to the gasolene convenience industry was $3.3 billion in 2004." So what was it in 2005?

* In the US, the largest component of credit/debit card fees -intechange (what the banks charge the retailer to acept Visa, Mastercard, Debit Cards, etc.) - accounts for roughly 2/3 of the fee. Interchange fees also fund the costs of rewards programs (cash back, sky miles, no annual fees, no late fees, etc), all designed to get sonsumers to use credit or debit instead of cash, which "serves as a hidden tax... and raises the cost of all products regardless of the form of pamyment," so says Hank Armor, CEO of the National Association of Convenience Stores.

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