High gas prices hard on retailers, too

NEW GLASGOW - With gas prices nearing $1.50, motorists could be easily tempted to think that retailers are raking in the dough at the pumps.
But the cost of business has risen right along with the actual price, particularly when it comes to credit card fees.
Credit card companies charge a fee to retailers, usually a few cents on every dollar. As gas prices increase, so do the fees. And in some cases, gas station owners, particularly the smaller independent garage owners, say they're losing out.
Bruce MacKay of the V-Filling Station in New Glasgow said for ever dollar's worth of gas sold, he has to pay 2.7 cents as a fee.
To give an example as to how these fees are cutting into sale margins he explains: Consider a $26 purchase paid for by credit card. At 2.7 cents per litre, the total fee for the purchase is 70 cents.
At current prices, $26 will buy 18 litres. MacKay said if he's getting a 3.5 cents per litre as a margin, he should expect 63 cents back on the purchase.
So, in this hypothetical situation, MacKay said he'd lose seven cents.
And the only thing he can do at this point is bite his tongue when people pull out a card.
The increase in fees has been so exorbitant south of the Canadian border that some gas station owners have decided to give discounts on other items if the customer can pay witth cash. Others have decided to refuse credit cards outright.
But MacKay said that's something he won't do.
"You need the business - and our business is just local. You might get the odd tourist, but you know people, if you refuse something, they'll never come back."
"You've got no control over it at all. You know these big companies - a little person like me wouldn't have a hope in hell against them."
Debit is a little different, since the fee for use is on individual purposes. That's why in some cases, retailers will tack on a small fee every a debit card is used.
"You give me a debit, I love to see it, because I haven't got the cash. It's the same as cash to us."
What's more, customers are paying with credit more and more these days, he says.
"Nobody carries all that money with them."