WASHINGTON, D.C. – Even though interchange is voluntarily capped at approximately $1 per transaction at the pump, supporters of the Durbin-Marshall Credit Card Mandates are again using Americans’ economic woes as an excuse to push new government mandates that would pad corporate mega-stores’ profits while ignoring the facts.
Interchange processing costs are voluntarily capped at roughly $1.02 per fill-up, regardless of the total purchase amount. At today’s national average prices of approximately $4.37 per gallon for gasoline and $6.32 for diesel, interchange is not charged after roughly 12.75 gallons of gas or 8.75 gallons of diesel, regardless of the total fill-up. Yet fuel stations continue to charge customers more for credit card purchases without passing along those savings to consumers.
“Gas prices are up, and Americans are feeling it every time they fill up,” said Electronic Payments Coalition Executive Chairman Richard Hunt. “But let’s be clear. Interchange is never more than about $1 a tank. Blaming credit cards for pain at the pump is just another excuse to hand corporate mega-stores a bigger payday.”
Several states have waived or suspended fuel taxes, while the Administration has temporarily allowed off-road “dyed” diesel to be used on highways, reducing the taxes applied to diesel fuel. These actions highlight the role taxes play in the overall price consumers pay at the pump and have a far greater impact on the price of fuel than any false talking point about credit card processing costs.
See the graphic below for a breakdown of the costs behind a 15-gallon fill-up.
