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why not just accept credit cards and charge a few cents
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Posted by Bill Homer [Email] (#3427) [Profile/Gallery] (more from Bill Homer) on Fri, 28 Dec 2007 12:16:42 Share Post by Email
In Reply to: Ugh, so that's that station..., Craig, Fri, 28 Dec 2007 09:44:46
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Apparently, Arco's strategy is to not accept cards and thereby charge less per gallon. Merchant fees for credit cards are typically in the 1% - 3% range; higher fraud incidence businesses pay a higher percentage, and an anonymous gas purchase at a pump is ripe for fraud, so I assume they are charged on the high side - on the other hand, they do a lot of volume, which should lower the charge. Assuming 2.5%, this can come to about 8 cents per gallon at today's prices, a large competitive advantage when shown in foot-tall numbers on your sign.

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