No petrol with Visa cards

Press, 21 November 1978, Page 7

No petrol with Visa cards

Visa bank cards cannot be used to buy petrol, the Motor Trade Association has said. The executive officer of the association (Mr T. Bates) said that the association wanted to forewarn people not to go into service stations. and expect to buy petrol with Visa cards.

He could see a situation where drivers had their tanks filled before announcing that they would pay with a card. Petrol prices ar e governed by the Motor Spirits Prices Regulations, which set maximum and minimum prices..

Under the card system, the banks charge businesses a commission of between 3 and 5 per cent on sales. Unless the retailers are prepared to absorb this cost, the commission is paid by con-

sumers as a surcharge. : However, under the petrol- ■ pricing regulations, any sur- < charging by service stations : is illegal. “If they have no cash on|: them and" the service station!’ cannot accept the card, what;' happens then?”

: Mr Bates said some sta-| tions were accepting Visa cards, but only for motor-1 ing accessories or repair, work. The Bank of New Zea-I :land had issued a special, 'Visa sticker for these sta-l ■tions, with an “except petrol”: • inscription.

■ 1 Certain credit cards, such Jas Diners Club cards, were ■[accepted by a number of ■service stations for petrol [sales, he said. This was legal 11 because the credit companies [treated the practice as a ser’[vice, and did not charge a commission.