No to Clinton-McCain Gas Tax Holiday; Yes to Permanent Interchange Fee Holiday

Two of the presidential candidates jumped into the nation’s economic energy crisis today by proposing a “gas tax holiday” to save motorists money. 

Senator Barack Obama, was smart and chose not to side with Senator’s Clinton and McCain.   And, if the presidential hopeful really want to make an impact, rather than just reducing the record prices at the pumps by temporarily lowering taxes, he should demand that Visa and MasterCard immediately remove their merchant interchange fees at all service stations.  Just look at both card association’s record earnings this week [28% quarterly increase for Visa and more than doubling for MasterCard] to understand why this is a national imperative.  There is a reason Visa and MasterCard’s stocks are soaring – windfall profiteering at the pumps

The argument that American’s are entering the peak driving season, and thus will increase demand on prices is wrong.  Motorists are driving less, and getting rid of their gas guzzling vehicles in exchange for more economical automobiles.  Even at ScanMyPhotos.com, we are providing free gas cards to help soften the effects from consumers driving less. Last week, The Los Angeles Times and the Associated Press reported on our campaign for providing free gas.

So far, none of the presidential candidates have pointed fingers at Visa and MasterCard and its member banks for their windfall profiteering from charging upwards of $2.50 in credit card interchange fees every time a motorist fills-up with a credit card.

“Gas Tax Holiday is a Dumb Idea:” Robert Reich

“Congress Grills Oil Execs on High Prices” (via AP)

The joke was on American consumers today – April Fool’s Day – in Washington, D.C.

Congress heard from oil industry executives to discuss the record-setting economic energy crisis and profiteering at the pumps.  The group that was not there were MasterCard, Visa and the major banks.  And, the question to them that was not asked was why they are able to demand a percent from every fill-up when electronic payment cards are used?  The banks reap about $2.00 in interchange fees from every fill-up when you use plastic to pay at the pumps.

[news via AP]

“More Americans Using Credit Cards to Stay Afloat” (via USA Today)

Click here to read the USA Today article by reporter Kathy Chu.

Excerpts:

• “As the economy has worsened, card issuers have become more selective about offering credit to new customers, and in a growing number of cases, are shrinking card holders’ credit limits. Yet they’re still sending more solicitations to existing credit card customers. In 2007, issuers increased their solicitations to existing customers by 15.6%, advertising rewards and other perks to promote spending, according to Mintel, a firm that tracks such mailings.”

• “Subprime customers — among the most profitable for banks because of the high rates and fees on their cards — saw a 41% jump in direct-mail credit card offers in the first half of 2007, the latest period for which figures were available, compared with the same period the year before, Mintel found.”

How Do Visa, MasterCard and Banks Benefit from $111.00 Oil?

It’s a new record, U.S. crude oil just hit $111.00 a barrel. 

What does this mean for the members banks and the two giant credit card associations?  Why aren’t people noticing that the credit card associations along with its member banks are reaping giant windfall profits from our economic energy crisis?

How can they justify reaping windfall profits during the global economic energy crisis? 

Did you know that each time you use plastic to fill up at the pumps, you are forced to pay upwards of nearly $2.00 just in electronic payment interchange fees?

Gas pump prices from photos taken by WayTooHigh.comon March 9, 2008 in Malubu, CA

Want to know more about lead plaintiff ScanMyPhotos.com?  Click hereand read their daily blog: Tales from the World of Photo Scanning

More Windfall Profiteering – Barrel of Crude Oil at Record $105.97

Is anyone else wondering why there is silence as the banks, Visa and MasterCard are celebrating extraordinary windfall profiteering at the pumps?  Crude oil reached another record high – $105.97, which means even more profiteering.

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Want to know more about lead plaintiff ScanMyPhotos.com?  Click here and read their daily blog: Tales from the World of Photo Scanning

What is “Reason Code 96?”

From the National Association of Convenience Stores:

Retailers also are hit with additional costs because of chargebacks, known as “Reason Code 96.” While retailers have not seen the specific rule (no retailer has seen the complete credit card operating rules that they are told to follow) they can be denied payment by the banks if they authorize a pay-at-the-pump transaction for more than $50 for Visa and more than $75 for MasterCard, even though the transaction is not challenged by the customer. As long as fuel prices remain high, “Reason Code 96” will substantially increase the cost of credit card acceptance.

Debit Holds for Fuel Purchases

Gas-buyers Fume at Credit Card Limits, ‘Blocks’

President Bush Isn’t Aware of $4-a-gallon Gas, But We Are

We are troubled that at yesterday’s (Feb 28) Presidential news conference, Mr. Bush was surprised and unaware that Americans are paying nearly $4-a-gallon to fill up their cars. 

Click here to view video 

Of equal concern is that if the President was surprised and unaware of what motorists are paying at the pumps, then he must also be in the dark on the nearly $40 billion siphoned out of our wallets each year by the banking cartel for merchant interchange fees for Visa and MasterCard’s electronic payment network.

But, now that he knows it, the next question is why are the banks able to force motorists using plastic at service stations to fork over a percent of each fill-up? These fees were designed to be cost-based, not to enrich thousands of banks who use these revenues to cover their billions in losses from misguided mortgage and other fiasco’s.

MasterCard had earlier announced a $50 cap at the pumps, but we are unsure if that ever took hold, and we are not sure if Visa followed along.  Did they?  And then two more questions:

1. Why are the banks still able to get upwards of 1.7% for each charge? 
   
2. If the credit card associations can place a limit on interchange fees at the pumps, why not for all electronic payment transactions elsewhere, from Rolex watches to a latte at Starbucks?

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Want to know more about lead plaintiff ScanMyPhotos.com?  Click here and read their daily blog: Tales from the World of Photo Scanning

Thanksgiving Travel: Record Gas Prices Leads to Extraordinary Hubris

More than a year ago, MasterCard Worldwide proclaimed they planned to establish a $50 cap on the fees gas stations pay to process consumer credit cards at the pumps.  Whatever happened to that program? Did they initiate the interchange fee limit, or was it just hot air? 

And, what about Visa’s program to limit interchange fees at the pumps?

With gas prices soaring to record levels, we want to know what happened.  And, that leads to the larger question: if MasterCard does agree to limits interchange fees at service stations, how about at the corner convenience store and million of other locations that also accept their cards?

[Commentary: WayTooHigh.com]