Gas stations charged for transactions
Proposed bill met with mixed reactions from students, convenience store owners
Brian Reisinger
Issue date: 9/29/05 Section: Campus News
A bill coming before the Wisconsin Senate would prohibit credit card companies from penalizing convenience store owners for offering discounts on gasoline and other merchandise to customers who pay with cash.
Sen. Dave Zien, R-Chippewa Falls, who proposed the bill, said local gas station owners helped him develop the idea, though the initiative would allow all retail businesses to offer discounts to cash-paying customers without penalty.
"We were told companies were punishing and penalizing those who would offer (a discount on cash purchases)," he said.
Zien said gas station owners save money when customers pay for gas with cash, because they don't have to pay as many credit and debit card transaction fees.
Convenience stores pay a set fee for each transaction, in addition to a small percentage of the transaction amount, prompting them to charge more for gas and other merchandise.
The charges only apply to cards from outside credit and debit companies, not to gas cards or other programs affiliated with a specific convenience store.
Zien said before this summer's price climb, gas station owners told him they could offer gas "about a nickel" cheaper to those who paid in cash, if credit card companies couldn't penalize them for it.
Junior Travis Anderson said the amount of money saved is not worth the trouble of carrying cash each time he wants to fill up.
"If you have to fill you have to have 30 or 40 dollars on you," he said. "(Paying with a credit card) is definitely a lot more convenient."
Senior Sarah Rude, who works at a convenience store, agreed the amount saved would not outweigh the ease of paying with a card.
| "It's a highly politicized topic and, in the end, I think it's not going to make a difference." -Sarah Rude Senior |
Sen. Dave Zien, R-Chippewa Falls, who proposed the bill, said local gas station owners helped him develop the idea, though the initiative would allow all retail businesses to offer discounts to cash-paying customers without penalty.
"We were told companies were punishing and penalizing those who would offer (a discount on cash purchases)," he said.
Zien said gas station owners save money when customers pay for gas with cash, because they don't have to pay as many credit and debit card transaction fees.
Convenience stores pay a set fee for each transaction, in addition to a small percentage of the transaction amount, prompting them to charge more for gas and other merchandise.
The charges only apply to cards from outside credit and debit companies, not to gas cards or other programs affiliated with a specific convenience store.
Zien said before this summer's price climb, gas station owners told him they could offer gas "about a nickel" cheaper to those who paid in cash, if credit card companies couldn't penalize them for it.
Junior Travis Anderson said the amount of money saved is not worth the trouble of carrying cash each time he wants to fill up.
"If you have to fill you have to have 30 or 40 dollars on you," he said. "(Paying with a credit card) is definitely a lot more convenient."
Senior Sarah Rude, who works at a convenience store, agreed the amount saved would not outweigh the ease of paying with a card.