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Credit card fee

Discussion in 'Businesses and Service Providers' started by ibast, Jul 31, 2007.

  1. I was charged a credit card fee at a Mobil the other day.

    Is this something common to all Mobils or just the one I went too?

    Do any other servos do it?

    I usually pay cash for petrol for the bike, but I was in the car.
  2. Few Caltexs around here do it.
  3. Just that one I'd say. How much was the purchase?? Some charge a fee on "small" transactions because of the costs involved with merchant services. They may have a crap contract with a flat $ fee per transaction.
  4. A lot of 'small' businesses in Vic charge a transaction fee if you buy less than say $10 worth of goods.
  5. No, the two Caltex servos I have been charged at were when filling the car.
  6. Depends on the credit card. Most places won't charge for a visa/mastercard because the fees that the bank charges are only about 1%. However AMEX and Diners and some others charge the poor retailer about 4% and that's more than a servo makes on the petrol. I know, I used to be the buyer of petrol for some servos. Often a servo is even losing money on the petrol, in order to try to get you to buy milk/bread/chocolates.

    Anyway, 4% is a lot, that's where your frequent flyer rewards come from and they've gotta be paid for by _somebody_.

    Other 'low margin' places like JBhifi also charge for AMEX/Diners.
  7. It was a mastercard with $60 odd worth of fuel.

    I've only struck it a couple of times with small purchases at something like a chemist.

    So we don't think it's every Mobil?
  8. Yes i am sure most Mobil Servos do it.. I use mobil for work and i have seen the notices about it at most of them..
  9. Most Mobils I go to DON'T do it. I've only found one in Mornington that does, and that's for the pay-at-pump service. The half dozen or so others around me and work are fine, so I just use them.
  10. Do they charge you a fee if you use a debit card?.... or just credit.

    When I managed a chain of BP's a couple of years back, we did a costing exercise one month on costs involved with making transactions.
    (amounted to roughly 2%-3%) overheads such as utilities, wages and rent where not included, only fees associated with processing the transaction.
    This was back when fuel was just starting to push up near the $1 a ltr mark, so with the rise in fuel costs since then these figues are about 25% higher in todays equivalent.

    The costs invovled with a transaction may not be much at first glance, but they do add up overtime.
    At one site we incurred over $300 a day in merchant fees :shock:
    along with the administration costs incurred due to having to reconcille, about an hour and a halfs wages a day, approx $40 ($55 on a weekend)
    Equivalent to what it costs to employ 2 console operators fulltime.
    Add that up over a month and it soon becomes clear that the banks certainly have got the game "sown up"
    With every increase at the pump, costs rose and the profit margin per litre remained the same. Selling fuel is not as profitable to the retailer as it seems. Its only a drawcard to get you into the store.
    Service stations make a per litre margin on fuel, not a % of the retail price.
    Coke on the otherhand, we paid 87cents for a 500ml bottle that retailed for $1.70(although we had a negotiated buying contract with coke, we got it way cheaper than most retailers)

    I know we paid a merchant fee for all transactions that were processed via both an EFT terminal or manual ,but I can't remeber if debit and credit cards incurred the same percentage fee. (maybe credit was higher, I can't recollect)
    (slide bar non electronic was slightly higher cos the banks said it costed them money to process the vouchers...
    so if a machine went down(and they do) it cost more, and any transaction that was rejected by the bank on a manual voucher be it either stolen or similar, we paid the price, as if retailers can know if a card is stolen/valid if the system is down or the flyer they post is out of date)

    But I know all cards incurred a fee to the merchant.
    Being high volume truckstops, we had a bit of pull with the bank and were able to negotiate the fee's on an annual basis, although the annual mechant fee was not negotiable. We also had to pay rental on the EFT terminal, and pay for the dedicated phone line it used.
    So thats, a percentage of the transaction, an anual merchant fee and terminal/phoneline rental (as well as a maintenance contract fee)
    and the wages for the time it takes to reconcille every day.

    Every service provided has a fee somewhere along the line, and the banks know how to snip at you from all angles, merchants and customers alike.
    They(banks) even charge you a "coinage" fee for exchanging notes for coins/small notes used in floats, we worked with a $10,000 float in the back office, so thats alot of coinage (about $100 a week in bank fees)
    and on top of that, if you are fortunate enough to have a high cash flow that requires the services of a security company for pickup, then you pay again.... thats why we liked providing a "cash out" service, it reduced cash on hand(risk) and didnt have the cost of security pick up.
    (brambles also charged by weight for coinage as well as a %)
    Cash out on a transaction did/does not incur a fee to the merchant, only the customer.

    Ya know, I often think back to when I first started work in retail,
    I got paid cash, in an envelope every thursday,
    and what I earnt was mine.
    No bank/goverment fees for deposits, no fees for withdrawls and no excess fees each month for wanting to have access to my own money more than a couple of times a month.
    And as for running a retail business back in the 80's before plastic fantastic came into the picture, at the end of the day, we counted the cash, wrote a bank deposit slip, and that was that, no fees, no machines to tally up or chase rejected transactions, no embarrased customers to deal with cos the bank mucked up things, life was simple.

    Electronic banking/retailing is costly to the seller and the buyer, and really profitable only for the banks.
  11. I must apologise. The petrol station question was an Ampol. I went past again the other day.

    It had Caltex on the bowser, Mobil on a small sign near the driveway, but Ampol on the main sign.

    As to the bank fee argument, I think it's a cop out. How much does it cost you to process cash?

    AFAIK it's the cost of doing buisness and should be factored into the price of the fuel.

    It's like being charged a surcharge on Sundays and public holidays at restaurant.

    Other places don't charge me a fee. I'll use them instead. I wonder what the cost of that would be?
  12. And pisses me off no end. You can't get a damn bank account these days without fees - if you do, they change it within a few months to add fees. But you also can't be paid in cash anymore - it has to go into a bank account. How did we allow laws that force people to buy a service they don't want or need?