Card approach planned

Press, 3 February 1982, Page 14

Card approach planned

PA Auckland Round one of the. battle between, service station proprietors and credit card companies over petrol sale payments has ended in stalemate.

The service station proprietors will meet on February 16 to plan a new approach, says a Service Station Proprietors’ Federation spokesman, Mr Neville Boyd. The meeting will be in Auckland, but Mr Boyd predicts the row will become a national issue. Representatives of the national council of the Motor Trade Association are likely to attend the meeting.

“While it is not a big problem at the moment with

only 1 per cent or 2 per cent of petrol sales being paid for with a credit card, we are concerned for the future that reaches something like 20 per cent,” Mr Boyd said.

The row started late last year when some Auckland service station proprietors, alleged that the charge levied by credit card companies on petrol bought through credit cards ate into already slender profit margins.

The proprietors’ federation asked the card companies either to waive the 2.5 per cent charge on credit card payments that they had to pay, or to condone service stations charging the customer a surcharge if they used their credit card.

Money service stations introduced a surcharge of 3c. in the dollar for credit card payments over ChristmasNew Year.

But the credit card companies have now ejected both proposals, and the New Zealand Bankcard Association says it is watching for anyone trying to add the surcharge.

Mr Derek Faulkner, manager of the Bankcard Association, said the surcharge system was against the agreement between the service stations and the credit card companies. His association was prepared to cancel the agreement with stations that surcharged.