Cash Only Gas Stations
Nowadays, prices are not the only signs found at gas stations; CASH ONLY is the new message. Many gas station owners have stopped accepting credit cards due to costly fees from credit companies. At $4 a gallon, these owners are incurring high costs each time someone fills up their tank with gas.
“The more they buy, the more we lose…Gas prices go up, and our profits go down.” said Randolph, who manages Mr. Ed’s Chevron in St. Albans.
On the other hand, Visa and Mastercard argue that owners run the risk of losing customers by banning credit cards. If people don’t have the cash or don’t want to spend it, they will simply go elsewhere.
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June 30th, 2008 at 6:58 pm
Have such gas stations considered offering their own credit cards? For instance, BP offers such approach and that possibly lures customers into becoming loyal costumers of a select seller.
When consumers become affiliated to a specific seller they receive special perks such as discounts and rebates, which creates a sense of belonging and security, since they know they can count on that vendor.
Visa and Mastercard’s perspective seems logical, in times when budgets are tight and things are demanded quick and easy, gas stations should lessen restrictions and accomodate to the lifestyle of its consumers, [especially when 51% of the U.S. population has at least two credit cards (Source: Center for Media Research) and of every $100 spent by consumers, nearly $40 is in a form other than cash or check (Source: Visa USA.)]
If the use of credit cards continues afflicting their pockets, gas stations can also look for alternative ways to alleviate the impact of the fees; Citgo offers calling cards for customers who spend a certain amount of money on gas, this attracts customers and perhaps increments profits. I think that refusing service to customers who use credit cards will affect gas stations negatively, instead of closing their doors they should look for alternative ways to mitigate the cost of the fees.