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Gas Stations Are Paying Less, So Why Aren't You?

Huffinton Post -- On Tuesday, President Barack Obama will ask Congress to get tougher with speculators who are increasing the cost of gasoline by gambling on future oil prices. While Obama prepares his remarks, another battle over pump prices is under way between gas retailers, banks and credit card companies.

Consumers who purchase gasoline with a debit card are being shortchanged, according to the Electronic Payments Coalition, an association representing Visa, MasterCard and a variety of small and large financial institutions.

"Gas retailers got a windfall and consumers aren't seeing any savings from it," said the coalition's spokeswoman Trish Wexler in an interview with The Huffington Post

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Submitted Apr 18, 2012 By: twinbuick

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honda0105 Champion Author Tallahassee Posts:18,580 Points:1,605,520 Joined:Nov 2008	Message Posted: Apr 20, 2012 4:57:43 AM Ignore honda0105 Report Abuse while it is good to get tougher, can't get tough w/ offshore trading b/c American law does not extend there.
goldrose1 Champion Author Cleveland Posts:10,925 Points:1,920,910 Joined:Feb 2005	Message Posted: Apr 19, 2012 9:11:50 PM Ignore goldrose1 Report Abuse Fix the issue. Cap Credit card fees, too.
pbug101 Champion Author Georgia Posts:2,439 Points:575,900 Joined:Aug 2011	Message Posted: Apr 19, 2012 7:32:08 PM Ignore pbug101 Report Abuse ok
puinsai808 Champion Author Honolulu Posts:3,524 Points:723,305 Joined:May 2011	Message Posted: Apr 19, 2012 9:28:23 AM Ignore puinsai808 Report Abuse I disagree.
nb52 Champion Author Grand Rapids Posts:7,760 Points:1,542,850 Joined:Nov 2008	Message Posted: Apr 19, 2012 5:28:44 AM Ignore nb52 Report Abuse Oh boy, pump prices will go way down, now that our Maximum Leader is involved.
apiergallini Veteran Author North Carolina Posts:389 Points:244,255 Joined:Mar 2011	Message Posted: Apr 19, 2012 12:36:03 AM Ignore apiergallini Report Abuse @judgemobile From the article, before the law was passed, a gas station paid about $0.73 in interchange fees on a 16-gallon purchase. Now, the fees are capped, and so they only pay about $0.25 in fees for that same 16-gallon purchase. Not that that's a lot, but $0.48 per transaction adds up. With those fees lower, the station could charge $0.03 less per gallon and still make the exact same profit - but they just charge the same price and increase their profit instead. @southrob What are you talking about? A vast majority of people don't have their own private oil wells, and, even if they did, they also don't have a refinery to turn that oil into gasoline. How, exactly, are people to stop buying gas? @Wierbe Sure, you can pay cash for things like gas, but what about your cell phone? Prepaid phones aren't as good, cost more per minute/text/whatever, etc. Are you going to pay cash for a new computer? For a new transmission? New home appliances? A rental car, or an airplane ticket? Most things don't have a discount for cash because Visa, MasterCard, etc., don't allow vendors to discriminate on payment methods except for with gas. Credit/debit cards have a lot of benefits, including allowing you to pay over time, giving you extended warranties, rewards, help getting refunds, and, if your card gets lost or stolen, you can stop someone from spending your money by reporting your card as lost/stolen. You can't report your cash stolen and stop the thief from spending your cash, nor can you get reimbursed for the cash he stole unless it's recovered. Anyway, getting back on topic, the Coalition isn't going to go out of business unless we all stop paying with plastic for EVERYTHING, which isn't going to happen. @bcok What's wrong with using credit cards for personal use? I use mine all the time, for all the reasons mentioned above. I also pay my balance in full every month, so I don't pay any interest fees. All the benefits, and no extra cost for it.
OWENALOTT Champion Author Appleton Posts:2,182 Points:500,095 Joined:Apr 2011	Message Posted: Apr 19, 2012 12:10:14 AM Ignore OWENALOTT Report Abuse Ok
SparkieMi Champion Author Kalamazoo Posts:3,239 Points:584,220 Joined:Sep 2011	Message Posted: Apr 19, 2012 12:07:00 AM Ignore SparkieMi Report Abuse What is the real story??????
bcok Champion Author Los Angeles Posts:2,102 Points:1,540,290 Joined:Oct 2005	Message Posted: Apr 19, 2012 12:00:33 AM Ignore bcok Report Abuse I feel sorry for all the people that use the credit card for personnel use . Corporate cards, are used without worry of the costs. Cash will save on the long and especially right now!
tex_mex13 All-Star Author Austin Posts:615 Points:275,255 Joined:Jul 2011	Message Posted: Apr 18, 2012 11:57:46 PM Ignore tex_mex13 Report Abuse Ggeat !
Godozo All-Star Author Gary Posts:646 Points:554,465 Joined:Dec 2010	Message Posted: Apr 18, 2012 11:44:00 PM Ignore Godozo Report Abuse There's a big range of prices over northwest Indiana, from $3.77 to $4.20 at present. The lower prices are where price wars are happening and the jobbers are dependent on people buying cigarettes, pop and lottery; the higher prices are for brands whose customers are loyal enough to pay the premium price for the fuel. If some gas retailers are doing "well" at the pump, I believe it's because those who can keep the prices up are doing so to prepare for the next price spikes. Don't be surprised if the next price jump puts some of the Sub-Citgo branded stations into the ground, while leaving the BPs and Shells standing.
jetskijerry Champion Author North Carolina Posts:3,876 Points:768,270 Joined:Mar 2011	Message Posted: Apr 18, 2012 11:32:06 PM Ignore jetskijerry Report Abuse They're not your friend...
Wierbe Champion Author Cincinnati Posts:3,732 Points:1,115,115 Joined:Apr 2006	Message Posted: Apr 18, 2012 11:32:00 PM Ignore Wierbe Report Abuse Around here, there are only a handful of retailers offering a discount for cash purchases. It is no disadvantage to me financially to use a debit card. Plus, it does keep me out of the store and away from other purchases. Seems to me that the winner here is the winer - the Electronic Payments Coalition. If we all start paying cash, they will go out of business.
LQQKGAS Champion Author Phoenix Posts:2,650 Points:1,192,055 Joined:Oct 2009	Message Posted: Apr 18, 2012 11:31:57 PM Ignore LQQKGAS Report Abuse Why are gas stations paying less ???
jetskijerry Champion Author North Carolina Posts:3,876 Points:768,270 Joined:Mar 2011	Message Posted: Apr 18, 2012 11:31:50 PM Ignore jetskijerry Report Abuse greed
Zonk Champion Author Michigan Posts:6,461 Points:2,098,765 Joined:Oct 2005	Message Posted: Apr 18, 2012 11:28:04 PM Ignore Zonk Report Abuse The banks are doing okay.
Geo4564 Champion Author Nevada Posts:6,895 Points:1,564,845 Joined:Aug 2007	Message Posted: Apr 18, 2012 11:25:32 PM Ignore Geo4564 Report Abuse Debits are a ripoff.
HKL All-Star Author Wilmington Posts:639 Points:359,430 Joined:Oct 2010	Message Posted: Apr 18, 2012 11:24:46 PM Ignore HKL Report Abuse k
crreed1 Champion Author West Virginia Posts:1,965 Points:2,522,335 Joined:May 2005	Message Posted: Apr 18, 2012 11:23:57 PM Ignore crreed1 Report Abuse BS
bbreff Champion Author Atlanta Posts:9,828 Points:2,564,415 Joined:Jun 2005	Message Posted: Apr 18, 2012 11:22:01 PM Ignore bbreff Report Abuse If you think OBUMA will do something that can lower prices, guess again. He will blame Congress when they do not give him the $52 million he is asking for.
southrob Champion Author Tucson Posts:3,585 Points:685,150 Joined:Mar 2011	Message Posted: Apr 18, 2012 11:21:40 PM Ignore southrob Report Abuse when will we learn stop buying and drill our own
speedraider Champion Author Orlando Posts:3,653 Points:1,640,895 Joined:Nov 2005	Message Posted: Apr 18, 2012 11:21:14 PM Ignore speedraider Report Abuse ok
Double_Golden Champion Author San Francisco Posts:2,540 Points:601,385 Joined:Aug 2011	Message Posted: Apr 18, 2012 11:21:00 PM Ignore Double_Golden Report Abuse ok
umitb Champion Author Indianapolis Posts:3,653 Points:839,440 Joined:Apr 2010	Message Posted: Apr 18, 2012 11:21:00 PM Ignore umitb Report Abuse ok
regasaz Champion Author Phoenix Posts:5,775 Points:1,279,380 Joined:Dec 2006	Message Posted: Apr 18, 2012 11:19:15 PM Ignore regasaz Report Abuse Because the consumer is at the end of the food-chain.
jrschl Champion Author Louisville Posts:2,947 Points:677,065 Joined:Jun 2011	Message Posted: Apr 18, 2012 11:19:00 PM Ignore jrschl Report Abuse One day we will be off of oil. I can't hold my breath that long, but one day.
Buddy2264 Champion Author Tampa Posts:11,629 Points:2,355,745 Joined:Oct 2005	Message Posted: Apr 18, 2012 11:18:03 PM Ignore Buddy2264 Report Abuse Interesting have to read on. But what does a few cents save, I guess a lot over time.
OWENALOTT Champion Author Appleton Posts:2,182 Points:500,095 Joined:Apr 2011	Message Posted: Apr 18, 2012 11:17:37 PM Ignore OWENALOTT Report Abuse k
Bigwaynef Champion Author South Carolina Posts:11,444 Points:2,076,760 Joined:Dec 2006	Message Posted: Apr 18, 2012 11:16:56 PM Ignore Bigwaynef Report Abuse Obama will help them to raise the prices even higher...
2bigtanks All-Star Author Akron Posts:772 Points:371,610 Joined:Jun 2011	Message Posted: Apr 18, 2012 11:16:28 PM Ignore 2bigtanks Report Abuse OK
Focus2 Champion Author Illinois Posts:7,888 Points:1,917,360 Joined:Mar 2006	Message Posted: Apr 18, 2012 11:16:01 PM Ignore Focus2 Report Abuse That's the way it goes!
rahcat Champion Author Grand Rapids Posts:2,448 Points:658,950 Joined:Jan 2010	Message Posted: Apr 18, 2012 11:16:00 PM Ignore rahcat Report Abuse Old news.
jkpsr Champion Author New Jersey Posts:4,069 Points:1,099,105 Joined:Jun 2005	Message Posted: Apr 18, 2012 11:15:21 PM Ignore jkpsr Report Abuse I like getting 3% back on my credit card purchases. This means that $3.50 gas costs $3.40.
tree_shakker Veteran Author Ontario Posts:427 Points:187,480 Joined:May 2011	Message Posted: Apr 18, 2012 11:13:42 PM Ignore tree_shakker Report Abuse Why would we !!
regout Champion Author Quebec Posts:2,935 Points:828,705 Joined:May 2010	Message Posted: Apr 18, 2012 11:13:37 PM Ignore regout Report Abuse Every body want a piece of the cake.
suzmar Champion Author Texas Posts:2,208 Points:869,060 Joined:Jun 2006	Message Posted: Apr 18, 2012 11:13:36 PM Ignore suzmar Report Abuse Mr. Obama gave the same speech last year on getting tough on speculators. The public has a very short memory.
tedjm1 Champion Author New York Posts:5,609 Points:800,300 Joined:Dec 2006	Message Posted: Apr 18, 2012 11:12:31 PM Ignore tedjm1 Report Abuse Nothing changes.
GoGoGoodyear Champion Author Los Angeles Posts:2,048 Points:505,335 Joined:Mar 2010	Message Posted: Apr 18, 2012 11:12:20 PM Ignore GoGoGoodyear Report Abuse Here in the Los Angeles area the spread between cash and credit prices at the gas stations has remained about the same as it was before the new laws went into effect which impose a cap on what the credit card processing companies can charge for each transaction. What's more interesting is that a large number of gas stations in this area charge the same price for both cash and credit. I doubt it's because their equipment can't handle the two different prices. If about one third of customers use a debit card, how many customers use cash and are really being taken advantage of by paying the same price as credit card customers? "Gas retailers argue that they aren't making money off the Durbin Amendment, much less pocketing profits intended for consumers. Credit and debit card swipes often look the same to the computer processing the transaction, said Jeff Lenard, vice president of the National Association of Convenience Stores. As a result, debit transactions are often processed as credit card ones." My BS alert meter just hit 100 on the above statement. Credit and debit card transactions DO NOT look the same to the card processing company and ARE NOT charged the same fees. The biggest difference is that a debit card transaction WHICH IS PROCESSED as a debit transaction REQUIRES the customer to enter a PIN number on the keypad. That is not to say that a debit card cannot be used LIKE a credit card, and that choice is usually up to the customer. Some banks are encouraging their customers to use their debit card as a credit card when making purchases because the customer gets the higher protection against fraud that comes with making a credit card purchase, and because the bank can charge higher fees for accepting the transaction as a credit instead of debit card. Banks were doing this even long before the Dodd-Frank laws went into effect.
TheSicilian Champion Author Jacksonville Posts:5,359 Points:1,465,750 Joined:Feb 2009	Message Posted: Apr 18, 2012 11:10:06 PM Ignore TheSicilian Report Abuse chase speculators don't do anything to produce gas
jem069 Champion Author Detroit Posts:2,518 Points:683,080 Joined:Jan 2011	Message Posted: Apr 18, 2012 11:09:18 PM Ignore jem069 Report Abuse Ok
mfeldstein Champion Author Ottawa Posts:8,156 Points:1,927,455 Joined:Feb 2007	Message Posted: Apr 18, 2012 11:08:51 PM Ignore mfeldstein Report Abuse Well I guess everyone's got a family to feed.
judgemobile Champion Author Ohio Posts:7,550 Points:2,441,135 Joined:Nov 2005	Message Posted: Apr 18, 2012 11:08:48 PM Ignore judgemobile Report Abuse how do they KNOW gas stations are paying less >
GordoM All-Star Author Detroit Posts:993 Points:990,070 Joined:Nov 2006	Message Posted: Apr 18, 2012 11:08:01 PM Ignore GordoM Report Abuse Oh gee, another government price fixing law is not working out. THEY NEVER work out! Keep government out of markets. They only make things worse while generating lots of political donations as companies pay up to get favors or prevent their competitors from getting them. Politicians are the only winners.
jrsva Champion Author Virginia Posts:9,830 Points:1,608,250 Joined:Jan 2006	Message Posted: Apr 18, 2012 11:05:39 PM Ignore jrsva Report Abuse “More than one-third of gas purchases are paid for with a debit card, according to Phoenix Marketing International.” GasBuddy polls show similar results. Polls in 2007 and 2010 both showed debit card use at 30-31% of fuel purchases.
kingpin6 Champion Author Arkansas Posts:2,920 Points:1,559,000 Joined:Jul 2007	Message Posted: Apr 18, 2012 11:05:05 PM Ignore kingpin6 Report Abuse It's the same word that applies to big oil companies making record profits, GREED. Retailers want in on it too!
joel27nc Champion Author Raleigh Posts:10,517 Points:1,854,370 Joined:Mar 2008	Message Posted: Apr 18, 2012 11:02:39 PM Ignore joel27nc Report Abuse Greed!
SparkieMi Champion Author Kalamazoo Posts:3,239 Points:584,220 Joined:Sep 2011	Message Posted: Apr 18, 2012 11:00:21 PM Ignore SparkieMi Report Abuse Interesting....
ScottE Champion Author Orange County Posts:4,352 Points:2,195,905 Joined:May 2002	Message Posted: Apr 18, 2012 10:59:00 PM Ignore ScottE Report Abuse Thats why I only debit or pay cash at ARCO. About Time He says the right thing on GETTING TOUGH on Speculators. Or is it an election year. OyahBAMA is bummer about that. Hear he and Mitt are tied in polls at 46%
TekWare Champion Author Toronto Posts:3,141 Points:668,900 Joined:May 2011	Message Posted: Apr 18, 2012 10:57:15 PM Ignore TekWare Report Abuse It's called greed.
defiancegasman Champion Author Ohio Posts:7,069 Points:1,321,210 Joined:May 2006	Message Posted: Apr 18, 2012 10:56:39 PM Ignore defiancegasman Report Abuse As long as they stick together, the price stays up! I drops, they all drop!