Setting The Record Straight on Gasoline, Electronic Payments, and Inflation
Rising gas prices are all over the news lately. The high cost of fuel impacts all our lives—from consumers commuting to their jobs to small businesses shipping goods to their customers.
To help make life more convenient for consumers and fuel merchants, payment networks in 2021 started increasing the pre-authorization limits on the amount of gas drivers could purchase with a credit card. This resulted in a higher fraud-liability threshold that payment networks would provide for fuel merchants.
Starting in 2021, payment networks raised the limit to $125 and raised it again this past April to $175. These actions are allowing gas stations to raise transaction limits, meaning more secure purchases and fewer consumers facing pump shutoff.
However, special interest groups, like the National Association of Convenience Stores, have falsely claimed that payment networks are still limiting cardholders to only $75 per fill-up while attempting to link payment networks to higher gas prices and inflation.
Sadly, corporate convenience store chains are trying to undermine critical investments being made by payment networks to increase fraud protection. Despite the numerous benefits convenience stores receive from electronic payments, they are pushing for more government price caps on interchange fees. While this might be good for their bottom line, it will mean weaker security protections for consumers and merchants.