Credit card companies take a percentage of all sales from gas stations. As oil prices continue to rise, consumers may end up having to pay more of the costs.
Credit card companies charge merchant fees – this is a percentage of the sales made by the retailer, store owner, or seller. These merchant charges eat away the profits from the fixed per-gallon cost that gas pump owners add onto pump prices. That’s why some stations raise prices to keep their profits stable. However, many others do not want to jeopardize their competitive advantage and take the hit in profits themselves without passing it onto the consumers.
Read more on CNN Money.
