Gas Station Credit Card Fees Question

**Tjordan** · 11-24-2011 09:42 AM

I am evaluating an opportunity to acquire a gas station. In this process it has become evident that that credit card processing fees are a critical expense.

Do you have any experience with what % of revenue I should budget for CC processing fees?

I could really use some input on this topic from someone with experience in this area!

Thank you,

Tim

**Tjordan** · 11-26-2011 11:46 AM

Or maybe any resources to help determine the answer to this question?

Tim

**andrew11** · 12-01-2011 01:53 PM

Not really sure if this answers your question. But I did a college project a few years back about National Payment Card. It is/was new technology that turned people's drivers license into a payment card. So you had one less card to carry around. But the real benefit was for the merchants. The card bascially sends an electronic check to the merchant, so you avoid credit card fees (which are out of control). Then the merchant can in turn reward his NPC customers by lowering the prices because he is saving money. So in the end, it's a win-win for everyone. Check out the FAQ at the link below for more detail. Good luck!

https://www.paymentcard.com/

**GotLiveChat** · 12-01-2011 03:36 PM

Hi Tim, is the current owner not sharing that information? It certainly would help you to understand what ALL costs are involved by seeing the 'books' for this business.

But keep in mind that whatever rate the current owner is paying may not be your rate -- is the current processor allowing the transfer to new owners? You'll need to fill out financial info so they can determine your rate...

**daveb1** · 12-06-2011 08:44 AM

Hi Tim,

Make sure you are very careful with who you choose to process you credit cards. I have seen merchant processing fees go as high as 5%. My advice would be to find 3 04 different companies to give you quotes and lay out there services and track record. Compare all your offers and choose the best fit / value. There are lots of these companies around to choose from so take your time as this is an important and long term decision. Compare and value shop. You may also even want to hire a merchant processing consultant to get you started and up and going. I heard IdealCost is a good place to start but there are probably a few others you can find. If you let us know a few basics or names of the companies you are looking at we could probably give more advice.