Transaction Fees and Gas Prices

Previously in Transcendental Generalization…

One consequence of a “card not present� transaction is that the card issuer charges the merchant a higher fee to process the transaction, anticipating a certain amount of fraudulent transactions that will be disputed by cardholders.

Speaking of transaction fees charged by banks, here’s what the Motley Fool has to say about transaction fees paid by gas stations as gas prices rise…

Seventy percent of gas purchases are put on credit cards. Banks charge gas stations a processing fee -- an average of around 2.5% -- based on a percentage of the purchase price. In the past year, the fees owed by stations have risen by 64%, which amounts to $2.2 billion extra every year.

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Updated at: 8 October 2005 6:10 AM

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