$2.50 Credit Card Fee

OldManGhia · 11-06-2006, 09:17 AM

Just saw on Sky News that NSW Servos are going to charge $2.50 for any payment made by credit card. What next? A $2.50 charge to handle the cost of moving all the extra cash that they will now receive. Come on this is nothing but a rip off yet again.

OzJavelin · 11-06-2006, 09:23 AM

Yep .. quick way to loose patronage .. and forcing people to hand over cash probably will make them prime robbery targets.

Laminge · 11-06-2006, 10:36 AM

Quote:

Originally Posted by AU98C-Wagon

Just saw on Sky News that NSW Servos are going to charge $2.50 for any payment made by credit card. What next? A $2.50 charge to handle the cost of moving all the extra cash that they will now receive. Come on this is nothing but a rip off yet again.

Would be an interesting exercise, I thought they could only pass on the cost of the merchant fee to the consumer.

EFDream · 11-06-2006, 10:37 AM

That sucks

PH47 · 11-06-2006, 01:46 PM

Heard this too.. how can they do that? legally I mean.. that's basically charging for nothing.. there's already fees in the eftpos system for the service so how do they justify the new charge?

ToxikXR · 11-06-2006, 02:27 PM

because they are all money sucking D**KHEADS.. bloody outrageous

**Sorted** · 11-06-2006, 02:29 PM

We charge 2% on any payments we receive by credit cards.

Why you ask - well we paid $25,000 in credit card fees last year and alot of the payments can be done by direct deposits, its just that the managers or directors want to put the payments on their credit cards so they get Points to obtain free stuff from their credit providers.

I can see them being able to charge a fee on a percentage basis but not a straight $2.50.

And I am sure that service stations have a low charge rate from credit card companys due to thier combined high turnover

Telstra charge .69% for Visa, Mastercard etc and I am sure the service stations have a rate something like this

With fuel prices so high why dont they fight the government for some relief - not the consumer?

Also if they are going to charge what dont they charge 1% or something

Hopefully this fee wont be coming to VIC but i am sure it will.

Smoked · 11-06-2006, 05:55 PM

Yet another way for the little guy to be ripped off.

sednwol · 11-06-2006, 06:00 PM

Just boycott them, that's what will happen....punish them!

AWD Chaser · 11-06-2006, 06:12 PM

Before this gets too caried away, I belive that the $2.50 was a calculation on $100 of fuel.

If you read the following article by ninemsn:

http://news.ninemsn.com.au/article.aspx?id=83282

You'll see that motorists will pay up too $2.60 on a $100 fuel purchase, which works out to be 2.5%.... still, I think it sucks.... as if fuel prices, and interest rates (for car loans), and the home loan rates going up aren't bad enough...

BA Turbo · 11-06-2006, 06:37 PM

This is crap i today had to refill my grandmas camary and grandma asked the guy why did the pump go so quick for $20 and i was like granny nooo he is already pulling out a broom stick on anther guy.

When i get my liscense im going to get my VN commiwhore or my 1993 FALCON and do burnouts on his servo ground

**Sorted** · 11-06-2006, 06:58 PM

Quote:

Originally Posted by au3 chaser

Before this gets too carried away, I believe that the $2.60 was a calculation on $100 of fuel....which works out to be 2.6%.... ...

I am sure that the actual rate from the banks for purchases with credit cards at service stations are around 1% - why are they charging 2.5% (Shell/Mobil/BP/Caltex etc would have deals with credit card suppliers to get lower rates than the normal little shop)

They have a note about American Express and Diners Club, I know they charge higher rates - so maybe the 2.6% is related to them.

That would be the normal way news is reported - give the worse case scenario and make it out as the normal rate

ClevlndStemer · 11-06-2006, 07:10 PM

to be honest they could have done this 3 years ago when the RBA said any business is able to do it. As long as the servo indicates that they are doing this before we fill up I have no issue with it.

AWD Chaser · 11-06-2006, 08:24 PM

I am understanding of the fact that they could have done it years ago, but it just sux they they had to bring it in when petrol is at it's highest... Wonder if it will come in to canberra...

The G6ET Spot · 11-06-2006, 08:40 PM

They actually changed the laws in 2004 so that the merchant could charge a fee of between 1 and 2.6%. They say that the reason for them starting to charge the fee now was because of low profit rates to the service station.Supposedly only making around 3 cents per litre.Quite interesting really as when I checked the gate price of fuel from the oil companies to the service station yesterday, the price was 131.8 c/lt yet you couldn't buy petrol out my way for under 139.9c/lt.So much for there 3 c/lt profit magin. Just another way of ripping everyone off. Stuff them, i'll just pay mine on EFTPOS from now on.Where they can't charge you a fee

LukeGT · 11-06-2006, 08:46 PM

I have seen signs on Mobil pumps for at least a month saying they charge a fee for using credit cards. It used to be illegal to onpass bank fees to consumers, but shops just got around that by including the fee in the full price and giving customers a discount for cash!

I was pretty annoyed when Tesltra introduced a fee for credit card payments, so I just started paying by cheque, which cost me no extra, and i'm sure cost them a lot me to process than a credit card payment!

Jeeepers · 11-06-2006, 09:08 PM

Between the banks, government and oil companies. Who's left to screw us? :yeees:

pertuan · 11-06-2006, 09:40 PM

Quote:

Originally Posted by RAPID XR8

Quite interesting really as when I checked the gate price of fuel from the oil companies to the service station yesterday, the price was 131.8 c/lt yet you couldn't buy petrol out my way for under 139.9c/lt.So much for there 3 c/lt profit magin.

True but have you factored in their rent and operating costs. Maybe that brings the profits down to 3c/litre.

cArSiK · 11-06-2006, 10:41 PM

this whole thing is very amusing when only about 6 months ago caltex was giving 8 Cents off a litre when a Woolworths Voucher was used inconjunction with a Visa Card.

If this fee is introduced , im sure MasterCard Visa and AMEX will lower the merchant fees at some servos to encourage the use of thir cards like they do with telstra.

qwigybo · 12-06-2006, 12:19 AM

dad just informed me that westpac's fee to servo's is about 2.5% for credit cards

Laminge · 12-06-2006, 12:27 AM

There is no way on earth that servos would be paying that.

Going back 6 months, quotes for merchant facilities based on Turnover and Ticket size for an average servo would start from .64% upto 1.00%

If any one is paying over 1.5% Merchant Service Fee then they are bending over with a smile.

The banks are screaming for merchants as they take a nice cut in interchange fees, so its a retailers market if they shop around.

Visa MasterCard Bankcard do not set the rates, the Banks do, they make a profit above approx .54%

Amex and Diners are different to the above schemes

wodahs · 12-06-2006, 12:55 AM

they've started that tn wa aswell , supose next well be charged parking fee's whilst at the bouser

Black XR6 · 12-06-2006, 12:23 PM

Quote:

Originally Posted by RAPID XR8

They actually changed the laws in 2004 so that the merchant could charge a fee of between 1 and 2.6%. They say that the reason for them starting to charge the fee now was because of low profit rates to the service station.Supposedly only making around 3 cents per litre.Quite interesting really as when I checked the gate price of fuel from the oil companies to the service station yesterday, the price was 131.8 c/lt yet you couldn't buy petrol out my way for under 139.9c/lt.So much for there 3 c/lt profit magin. Just another way of ripping everyone off. Stuff them, i'll just pay mine on EFTPOS from now on.Where they can't charge you a fee

EFTPOS fees can be nearly as bad depending on your bank.

cArSiK · 12-06-2006, 12:25 PM

Quote:

Originally Posted by Black XR6

EFTPOS fees can be nearly as bad depending on your bank.

eftpos shouldnt cost the servo anything.

Black XR6 · 12-06-2006, 12:27 PM

No, but your bank dosnt appreciate it and will charge you for excess usage. Excess usage can be anything but most of the time its 4 per month. Then the fees start.

jmc-007 · 12-06-2006, 12:27 PM

Quote:

Originally Posted by Laminge

Would be an interesting exercise, I thought they could only pass on the cost of the merchant fee to the consumer.

This is exactly what it is. But people in non central areas such as Newcastle , Gosford and Other Country places in NSW

have been paying this since 2003 !!!

cArSiK · 12-06-2006, 12:41 PM

Quote:

Originally Posted by Black XR6

No, but your bank dosnt appreciate it and will charge you for excess usage. Excess usage can be anything but most of the time its 4 per month. Then the fees start.

sorry , i thought you were saying that it would cost the servo as much as a C/Card. But you're right , when banks start charging excess transaction fees , it can get costly.

qwigybo · 12-06-2006, 04:50 PM

Quote:

Originally Posted by Black XR6

No, but your bank dosnt appreciate it and will charge you for excess usage. Excess usage can be anything but most of the time its 4 per month. Then the fees start.

thats why i got an account with unlimited transactions, i don't carry cash on me it burns a hole in my pocket

Aeron · 12-06-2006, 04:57 PM

Looks like i'll have to press "Savings" from now on then.

Laminge · 12-06-2006, 05:20 PM

There is a difference here between what the bank charges the merchant and what the bank charges you to use your account(could never work that one out)

Anyhows, JMC, the $2.50 is not the Merchant Service Fee, which is a percentage of the transaction, from what I read they want to charge a flat out $2.50

If that replaced the charging on the MSF or on top of it, who knows at this stage