Chief Prognosticator

Visa Says “Hey, We’re Not Greedy”

Visa announced this week that they will be capping the fees they charge gas stations for credit card transactions for gas purchases. Visa gets roughly a 2% cut of the sale price in exchange for credit card services. But as gas prices rise and rise, the aount Visa gets has increased too from 5 or 6 cents a gallon to almost 9 or 10! That doesn’t seem like much, but gas station owners usually only take a fixed markup on the fuel they sell, anywhere from 10 to 14 cents a gallon. That means gas station owners have been earning less and less money on the more and more expensive fuel they sell!

p.s. Mastercard capped fees last year. Way to pitch in, Visa!… although a little late.