Credit Cards Fuel Concerns

TALLAHASSEE, FL-- Gas station owners are pushing for a proposed federal law that would protect them from increasing credit card fees.

Charles Rooney is a third generation oil industry distributor. His grandpa started working with Rainey Cawthon Distributors more than 60 years ago.

"Its part of my blood," said Rooney.

But there's a new problem that's fueling concern.

"The credit card company makes more on a gallon of gas than we do," said Rooney.

He blames the credit card transaction fees. He said that's the company's second largest expense, behind payroll.

"Credit card fees are charged as a percentage of the sale. Because of that, the higher the gas price goes, the higher the credit card fee goes," said Rooney.

Here's the breakdown of Rooney's expense:

On average, he makes $.07 - $.09 profit, per gallon. But the credit card fees cost $.02 - $.03 per gallon. Plus, he has to pay a transaction fee each time he runs a credit card. And because those prices at the pump keep going up, fewer customers are paying with cash.

"Twenty years ago, 30 percent of our transactions were credit card. Now, less than 10 percent of our transactions are cash... over 90 percent of our transactions now are on some type of plastic," said Rooney.

The Florida Petroleum and Marketers Association hopes a Congressional proposal by Representative John Conyers Jr. will lower and cap those credit card fees.

"When your profits go up 189 percent in seven years like the credit card companies have, somebody needs to look into it. And we're not saying they shouldn't have profit, what we're saying is it should be fair, because ultimately the consumer pays," said Jim Smith.

Charles Rooney hopes credit card reform will boost his bottom line.

"It's a struggle for all businesses, not just petroleum retailers," said Rooney.

Some gas stations are offering cheaper prices for customers who pay with cash.

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