Grumpy

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Grumpy
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News & Issues > A Hidden Tax

  A Hidden Tax

I found this, this morning. It is a letter to the Editor of
“The Washington Post”.



PAIN AT
THE PUMP


Friday,
June 6, 2008; Page A18


There
is more to the May 25 front-page story about gas prices, "Peeved at
Prices? Don't Blame the Dealer": the credit card interchange fee.


Interchange
started as a fee to cover the cost of processing credit card charges by hand.
Today, paying at the pump is fully computerized, yet credit card interchange
fees have doubled since 2004, to nearly $8 billion a year just for motor fuels.


During
the same period, convenience store profits have been cut in half. Dwindling
profits is a big problem, and not solely for my members' wallets: Convenience
stores that sell gasoline (and provide jobs) are closing.


With
gasoline averaging $4 a gallon, 9 or 10 cents per gallon in interchange fees
goes directly to the credit card industry -- up to $3 per fill-up for many
drivers. And everyone pays interchange fees through higher gasoline prices
whether they use plastic or not. No one, except perhaps the member nations of
the Organization of the Petroleum
Exporting Countries
, enjoys higher profits from $4 gas than Visa and
MasterCard.


HANK
ARMOUR


Chairman
and Chief Executive


National
Association of Convenience Stores


You
know when I am getting screwed I usually like to get kissed. I knew about the
highway robbery at ATM machines.


But
this is a hidden tax,


I
thought only the thieves in Congress were supposed to be able to do this. In
fact I think I will send this to a few my elected Officials and see if I get a
response. Maybe we all should.


DA
(pissed off) grump


posted on June 6, 2008 6:14 AM ()

Comments:

I remember when a price break was advertised at the gas stations for cash rather than credit; but how it is automatically priced in for everyone is something I'd have to have spelled out. It should be the opposite, if we go by banks' reasoning: if a human being has to ring the transaction then it costs more.
comment by drmaus on June 15, 2008 2:27 PM ()
Well, I didn't know about this "hidden" tax! It's a disgrace, especially with the economy in the tank! I don't know about the rest of the country, but here in CA they make it so much easier to pay by CC because then you don't have to walk to the cashier to leave your money and then walk back to get your change! So, I always use my ATM card!
comment by sunlight on June 8, 2008 3:45 PM ()
Yeah I know about this, that's another reason why a lot of the "mom and pop" gas stations and Convenience Stores charge if you are going to use a debit or credit card. They have to cover their own asses, and really can you blame them?
comment by ducky on June 7, 2008 7:08 AM ()
Wow!! Another way I'm being screwed and didn't know it!
comment by redimpala on June 6, 2008 8:10 PM ()
I didn't know!!!!! Nena
comment by nenah on June 6, 2008 12:23 PM ()
They're killing us with all of this stupid crap!!
comment by texastar on June 6, 2008 10:15 AM ()
is this true???
comment by kristilyn3 on June 6, 2008 8:50 AM ()
comment by jerms on June 6, 2008 7:04 AM ()

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