SAN FRANCISCO — The sharply increasing cost of gasoline hasstrained the card payment system and Visa USA has taken steps totry to limit its impact.

The number 1 card brand announced that beginning on July 18, itwill cap the interchange charged on gasoline purchases with itsdebit cards to $0.95 per transaction. The previous rate frequentlycharged could be as high as 2% of the total purchase price, afigure which rose as the price rose and which gasoline stationoperators complained effectively eliminated their profitmargin.

The card brand also announced it was implementing a number oftechnical changes which would speed the pace of transactions beingposted to cardholder accounts. Currently, charges at gas stationsgenerate holds on accounts and sometimes trigger spendingauthorization limits.

Continue Reading for Free

Register and gain access to:

  • Breaking credit union news and analysis, on-site and via our newsletters and custom alerts.
  • Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders.
  • Educational webcasts, white papers, and ebooks from industry thought leaders.
  • Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.