When you process a 'credit' card, you're charged 3-5% of the sale if you're not tied to some conglomerate corporation thats negotiated something different.
I believe you answered some question I did NOT ask. I asked, "why a gas station charges 10 cents more per gallon to use a Visa "credit" card at the pump than to use a Visa "debit" card"
1.Because the merchant pays a fee - 3 or 4% to Visa for the use of a credit card, and no fee to he issuing bank for the use of a debit card (debit card is really an electronic withdrawal from the bank). 2. Because they can.
1. I know that. I didn't ask why we are charged to use a credit card. 2. You nailed it. Thank you for answering my question... no one else did. Why did you chose "weed" as your screen name?
Because Visa credit charges typically 5% paid by the retailer as a fee for accepting their card. As profit margins are so small with gasoline due do taxes & fees, smaller retailers have to charge customers... pass the 'fee' Visa credit charges to the consumer. Many larger retailers (QT, Pilot, Speedway) do not pass Visa's fee to consumers as their in-store purchases make up for the retailers Visa fees.
I believe you answered some question I did NOT ask. I asked, "why a gas station charges 10 cents more per gallon to use a Visa "credit" card at the pump than to use a Visa "debit" card"
ok. That computes. But do you see why I ask? Both are Visa cards, both must be electronically verified for authorization to check against zip code or PIN, so both take exactly the same amount of computational time and effort to process. Yet the credit card is hit with 10 cents per gallon bought, not per one time use fee. Imagine if your ATM was charging you per paper currency note it discharged to you, instead of a fee per transaction. But it would not charge you if you used an ATM card instead of a Visa Debit card
When you process a 'credit' card, you're charged 3-5% of the sale if you're not tied to some conglomerate corporation thats negotiated something different.
ReplyDeleteI believe you answered some question I did NOT ask.
DeleteI asked, "why a gas station charges 10 cents more per gallon to use a Visa "credit" card at the pump than to use a Visa "debit" card"
1.Because the merchant pays a fee - 3 or 4% to Visa for the use of a credit card, and no fee to he issuing bank for the use of a debit card (debit card is really an electronic withdrawal from the bank).
ReplyDelete2. Because they can.
1. I know that. I didn't ask why we are charged to use a credit card.
Delete2. You nailed it. Thank you for answering my question... no one else did.
Why did you chose "weed" as your screen name?
Because Visa credit charges typically 5% paid by the retailer as a fee for accepting their card. As profit margins are so small with gasoline due do taxes & fees, smaller retailers have to charge customers... pass the 'fee' Visa credit charges to the consumer.
ReplyDeleteMany larger retailers (QT, Pilot, Speedway) do not pass Visa's fee to consumers as their in-store purchases make up for the retailers Visa fees.
I believe you answered some question I did NOT ask.
DeleteI asked, "why a gas station charges 10 cents more per gallon to use a Visa "credit" card at the pump than to use a Visa "debit" card"
Jesse....a 'debit' card process can be free to the vendor processing the card by law unlike a 'credit' card.....
ReplyDeleteok. That computes.
DeleteBut do you see why I ask? Both are Visa cards, both must be electronically verified for authorization to check against zip code or PIN, so both take exactly the same amount of computational time and effort to process.
Yet the credit card is hit with 10 cents per gallon bought, not per one time use fee.
Imagine if your ATM was charging you per paper currency note it discharged to you, instead of a fee per transaction.
But it would not charge you if you used an ATM card instead of a Visa Debit card