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Author Topic: New way to pay for gas  (Read 1547 times)

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Online HipGnosis

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New way to pay for gas
« on: February 22, 2014, 01:54:34 PM »
I hope this catches on and spreads across the country.


Convenience chain Cumberland Farms hopes it can ease the pain (at the pump) with a new app that offers a 10 cent per gallon discount at the pump.
Cumberland Farms, a chain of convenience stores and gas stations in the Northeast, announced that customers could get 10 cents a gallon off gas when they used the retailer's new app, SmartPay. Instead of swiping a card or paying cash inside, customers with the app can just punch in the pump number to activate it and then fill up as usual. The discount will be given automatically, and the money will be deducted from the customer's checking or PayPal account. (The 10-cent discount is only for those with a linked checking account; those who link a PayPal account get 5 cents off.)
That last bit is important, and it's why the retailer is willing to give up 10 cents a gallon. Because the app is linked to your checking account or PayPal account, Cumberland Farms isn't processing a debit card or credit card. And that means it doesn't have to pay any swipe fees on the transaction.
And swipe fees can be painful for a gas station owner. The Durbin Amendment capped debit card swipe fees at 21 cents per transaction -- not too bad if a customer is filling up a big tank, but a margin-killer on smaller transactions. And since credit card fees are still calculated as a percentage of the sale, they can be a lot worse: If the bank is charging a gas station 3 percent per swipe, then it's giving up around 11 cents a gallon at current prices.
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Offline Cookie

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Re: New way to pay for gas
« Reply #1 on: February 22, 2014, 02:04:55 PM »
We've had that for a couple of years here.

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Offline Mac

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Re: New way to pay for gas
« Reply #2 on: February 23, 2014, 04:31:53 PM »
It's a plot by smart phone manufacturers!!
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Offline kneescrubber

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Re: New way to pay for gas
« Reply #3 on: February 23, 2014, 04:53:39 PM »
Gotta pay those exorbitant officers salaries and shareholder's dividends somehow.

We all use banks. And yet......
Do not go where the path may lead, go instead where there is no path and leave a trail.

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