Generally, these swipe fees range from 2% to 3% on consumer purchases; therefore, the higher the price of gasoline, the higher the [image-nocss] fees paid to credit-card companies. In 2008, when gasoline prices reached $4 per gallon following the subprime crisis, consumers felt the pinch badly. According to NACS, at that time, the credit-card companies earned a windfall of $48 billion on interchange fees due to these higher fuel prices. This equates to billions of dollars that should have remained in consumers' pockets, said Certified Oil.
NACS research also shows that interchange fees in the United States are three to four times higher than most other countries. In the U.K., interchange fees are 0.7%. While most agree that there is value for the convenience to use a credit card, the exorbitant rates charged to U.S. consumers compared to citizens in other countries is excessive, Certified Oil said.
"Certified Oil is proud to join NACS and other retailers in running a national petition to try and bring this issue to the legislative table in Washington," said Greg Ehrlich, the Columbus, Ohio-based retailer's COO. "There's something wrong when the two parties involved in the transaction, the customer and gasoline retailer, are actually feeling the pinch, while the credit-card companies and banks continue to rake in windfall profits, while having very little involvement in the buy or sell. There needs to be more transparency and some checks and balances on the fees they are charging."
Ehrlich said that these swipe fees are "hidden costs" and that most consumers are not aware of the fee. If these swipe fees were reduced, the cost savings would be passed onto customers each time they pull into any retail outlet such as a restaurant, shopping mall or gas station. He said that Certified Oil is committed to bringing this awareness to both consumers and legislators to help rectify this problem.
Certified Oil operates or supplies more than 140 locations in Ohio, West Virginia and Kentucky. It maintains its own proprietary "Certified" fuel brand and distributes fuels for Sunoco, Marathon, Valero and Clark.
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