Photo: National Association of Convenience Stores
Convenience stores are suffering under contracts that pay excessive fees to banks, and consumers are paying the price.”Swipe fees for the gasoline retail industry, like many other industries, are set as a flat fee that varies with the cost of transaction. As gas prices increase, banks automatically receive more revenue from each transaction,” explains a study by the National Association of Convenience Stores.
The chart on the right shows how much money goes to banks depending on the price of gas.
Seeing as convenience stores are also paying more to gas suppliers, many are actually losing money despite heady oil prices.
Convenience stores paid $1.1 billion in card fees in 2011, up 23 per cent from 2010, according to the report. Card fees also exceeded industry profits, posing a major concern for the industry.
Needless to say these fees get passed on to the consumers.