Independent Petroleum Marketers Ask Visa to Cancel Plans to Increase
Fees to Retailers
TORONTO, ONTARIO -- (Marketwire) -- 12/11/12 -- Canada's independent
petroleum marketers need a break from high credit card fees. The
Canadian Independent Petroleum Marketers Association (CIPMA) is
asking Visa to rethink its proposed fee increase. At a time when
retailers are struggling and banks and credit card companies are
posting record profits, Visa recently advised retail merchants that
it will be increasing the already high fees they charge to process a
credit card payment AND adding yet another higher cost 'Premium card'
to an already crowded credit card marketplace.
Independent petroleum marketers who sell and distribute close to 25%
of retail gasoline in Canada, operate on very thin and generally
stable margins. "Credit card fees are calculated as a percentage of
the total amount of the sale, so as gas prices increase and more and
more higher cost premium cards are introduced, our members are
getting hit twice," says Tricia Anderson, President of CIPMA.
Anderson notes that on a credit card sale, the independent petroleum
marketer is currently paying over 1/3 of their total operating margin
to credit card companies such as Visa merely to process a payment.
From the balance, independent marketers must pay all other operating
costs including salaries, benefits, facilities rent, utilities,
taxes, maintenance and capital improvements. One CIPMA member noted
that: "Visa is taking home more from our business than our family is.
And we are the people putting the investment, time and energy into
running the business."
Independent petroleum marketers also bear the brunt of paying for
credit card fees on taxes they collect for government. The average
tax on gasoline has increased significantly since 2009. On an average
transaction, a retailer pays over 40 cents simply to cover credit
card fees on taxes that they collect.
Over 40% of all retail fuel purchases at CIPMA members' sites are
done by credit cards.
CIPMA is a national, not-for-profit trade association representing
the unique interests of independent, (i.e. non-refiner) marketers of
petroleum products. Independent petroleum marketers are small and
medium sized enterprises whose success is built on solid business
practices and strong connections to the communities they serve. CIPMA
member companies distribute and sell petroleum and renewable fuels to
the wholesale, commercial, farm, and industrial and retail markets.
CIPMA members employ directly and indirectly over 20,000 Canadians in
communities across Canada.
Canadian Independent Petroleum Marketers Association
President and CEO
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