Credit card use in Ireland
Sep 18th, 2006, 08:44 AM
#23
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Yea. It escaped me too.
Meanwhile we "escaped" those stations and sought out other ones. I somehow interpreted it as saying "since we are already gouging you for gas, we don't want to give up any of our excessive profits by having to give some to the credit card companies."
Meanwhile we "escaped" those stations and sought out other ones. I somehow interpreted it as saying "since we are already gouging you for gas, we don't want to give up any of our excessive profits by having to give some to the credit card companies."
Sep 18th, 2006, 04:03 PM
#24
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I think some of the confusion may be that some people think it is only the service station that profits on the sale of gasoline, and don't know that any merchant who takes credit cards pays a rather hefty fee for that privilege.
In fact, there are a whole series of entities that process the product as it moves from the ground to the pump, and each of those makes some profit. Service stations actually make a very small profit in terms of their share of the consumers' dollar; they rely on volume to make their profits.
So if a gallon of gas costs the service station 90 cents, and they can sell it for a dollar, they can afford to pay the credit card companies for the privilege of using credit cards. However, if the cost of gasoline to the service center goes to $2.90, and he can only sell it for $3.00, he cannot afford to pay for the privilege of taking credit cards, unless he is in business to create losses.
Selling prices are largely driven by competition, and it is certainly conceivable that with the costs of gas increased, and margins squeezed, acceptance of credit cards would be a way for the service station to attempt to reduce its costs. Whether they would lose so much business that the savings would be illusory is something only they would know, and only after some experience.
Incidentally, I travel to California fairly often and have not seen a gas station that offers a discount for cash, but I don't do much driving there and tend to pass out when my son pulls into a gas station and I see the prices they are charging; it seems we often pay 50 cents or more per gallon less in Ohio than they pay out there.
I would also not be surprised to find some merchants in violation of their contracts with the credit card companies; I'm not naive enough to believe that people are always honest.
In fact, there are a whole series of entities that process the product as it moves from the ground to the pump, and each of those makes some profit. Service stations actually make a very small profit in terms of their share of the consumers' dollar; they rely on volume to make their profits.
So if a gallon of gas costs the service station 90 cents, and they can sell it for a dollar, they can afford to pay the credit card companies for the privilege of using credit cards. However, if the cost of gasoline to the service center goes to $2.90, and he can only sell it for $3.00, he cannot afford to pay for the privilege of taking credit cards, unless he is in business to create losses.
Selling prices are largely driven by competition, and it is certainly conceivable that with the costs of gas increased, and margins squeezed, acceptance of credit cards would be a way for the service station to attempt to reduce its costs. Whether they would lose so much business that the savings would be illusory is something only they would know, and only after some experience.
Incidentally, I travel to California fairly often and have not seen a gas station that offers a discount for cash, but I don't do much driving there and tend to pass out when my son pulls into a gas station and I see the prices they are charging; it seems we often pay 50 cents or more per gallon less in Ohio than they pay out there.
I would also not be surprised to find some merchants in violation of their contracts with the credit card companies; I'm not naive enough to believe that people are always honest.
Sep 19th, 2006, 03:37 PM
#25
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The stations that charge more for credit are the big oil company stations, like Chevron. I see their signs all over Escondido with the two prices on them. And the AM/PM stations charge a 45 cent fee for using an ATM card (they don't take credit cards). I don't go there either. I go across the street where the price per gallon is the same and no surcharge for ATM's.
Sorry...we got a bit off topic here.
Sorry...we got a bit off topic here.
Sep 20th, 2006, 09:04 AM
#26
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I just spent 2 weeks in Ireland-Doolin, Dingle, Kenmare, Kinsale, Kilkenny, Slane and all points in between!! I used my Capital One VISA left and right (no conversion fees) and never once needed a PIN. I also never once had the DCC pulled on me. Some places asked how I'd like it charged (thanks to the Fodorites I always said, "euros, please!"
or they charged it in euros automatically. I never had a problem with it. The couple in front of my at Bunratty Castle said they'd like it in dollars and the lady behind the counter told them most people say euros, though she didn't know what the difference was. So I jumped in and explained that you get a better exchange rate in local currency. The couple in front of me seemed kind of miffed that I dare barge into their financial world and the woman said she liked to know what she was paying (as if it's so hard to figure out at rough estimate in your head!). Ok then! I just smiled and shrugged. Let them get charged out the wazoo. I tried.
or they charged it in euros automatically. I never had a problem with it. The couple in front of my at Bunratty Castle said they'd like it in dollars and the lady behind the counter told them most people say euros, though she didn't know what the difference was. So I jumped in and explained that you get a better exchange rate in local currency. The couple in front of me seemed kind of miffed that I dare barge into their financial world and the woman said she liked to know what she was paying (as if it's so hard to figure out at rough estimate in your head!). Ok then! I just smiled and shrugged. Let them get charged out the wazoo. I tried.
Nov 3rd, 2006, 03:54 PM
#27
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We used our visa credit card and our atm card and had no problems at all. one B&B wanted cash so we went to the atm and got them cash. Just remember to notify your credit card and atm company that you will be using your card out of the the USA. Our kids didn't do this and had to call visa from Rome to get an ok. You only need a pin for atm or debit.
Nov 3rd, 2006, 07:42 PM
#28
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Aren't the Eyewitness guides published in Europe? That may acount for some of the confusion, as the credit cards with embedded chips are much more common - just about the standard, I believe - in Europe. These do often require a PIN to complete a purchase; the transaction is much like using a debit card in the US.
Not that I think travel guidebooks are infallible, mind you - last year in Istanbul I spent three days trying to send a fax sent to a number listed in an Eyewitness guide, only to learn through the kind assistance of a tourist office staffer that the number had been changed.
As to the cash discount, one merchant explained to me that the merchant's CC agreement forbids charging a higher price for use of a CC but does not prohibit a discount for cash. Technicality, but...
Not that I think travel guidebooks are infallible, mind you - last year in Istanbul I spent three days trying to send a fax sent to a number listed in an Eyewitness guide, only to learn through the kind assistance of a tourist office staffer that the number had been changed.
As to the cash discount, one merchant explained to me that the merchant's CC agreement forbids charging a higher price for use of a CC but does not prohibit a discount for cash. Technicality, but...
