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The REAL Credit Card Swipe
Source: www.unfaircreditcardfees.com
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Category: Business and Economy
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Short Description: Thousands of gas stations closing nationally due to high credit card fees; ... Consumers now pay 8-10 cents in interchange fees to the credit card companies ...
Content Inside: The REAL Credit Card Swipe Thousands of gas stations closing nationally due to high credit card fees; Visa raises hidden interchange fees on gasoline for the average American FACT: Thousands of gas stations around the country have closed in the last year alone. Far from benefitting from climbing gasoline prices, station operators' costs are jumping profits have dropped nearly 30% since last year. 1 FACT: Gasoline prices have skyrocketed over 40% since mid 2007, and the fees that station operators must pay to credit card companies have risen in tandem; credit card interchange fees are figured as a fixed fee plus a percentage of sales. Consumers now pay 8-10 cents in interchange fees to the credit card companies on every gallon of gas as much as $2-3 dollars on some fill-ups. FACT: Visa announced on June 26 that it had adjusted its interchange rate schedule to "help ease pain at the pump." But Visa's new fee structure means more expensive gas for people who don't qualify for (or don't use) so-called reward cards; they will pay more than before for under $57 transactions. 2 FACT: Oil Express, an independent industry publication, says Visa's newly announced reduction in interchange fees is little more than a "slap in the face... [gas marketers] will pay higher fees on card sales." 3 FACT: The Credit Card Fair Fee Act, backed by Democratic and Republican lawmakers alike, would create a competitive market-based solution that will help cut credit card fees on gasoline as well as food and other retail goods. Fewer gas stations, higher prices: Voices Gas station owner Aziz Hassan says most of his profits are going to credit card fees, leaving him little to cover his other costs. "I'm hanging in there and hoping for the better." - WSJ, 7/7/08 Consumer Watchdog's Judy Dugan says the decreasing number of gas stations is "terrible for consumers." WSJ 7/7/08 "By announcing its "lowering" of interchange rates as a move to help consumers, Visa implicitly acknowledged that interchange contributes to consumer costs...Interchange is not just a Main Street vs. Wall Street issue. It is also a consumer issue." Adam Levitin, Georgetown University, 7/1/08 We urge you to support HR 5546 / S 3086,The Credit Card Fair Fee Act of 2008 1 Wall Street Journal, July 7, 2008 2 Professor Adam Levitin, Georgetown University Law, is an expert on consumer financial issues. 3 Oil Express, July 2008
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