Saturday , August 20 2022

Due to profitability problems, more and more service stations do not accept credit cards



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For commissions

From the sector they believe that fuel has already been sold "in loss" due to the cost of the station. Between 800 and 1,000 mouths no longer accept plastic

Between 800 and 1000 service stations stopped offering credit cards as a means of payment in protest of credit periods and high commission costs.

This was indicated by the Confederation of Trade Entities on Hydrocarbon (Cecha), which grouped 3700 institutions.

On the other hand, service providers suggest that the context is complex and that funding costs have become more expensive, reported La Nacion.

"Credit card payment is not a direct cause of a fall in profitability, but because of the economic problems through which the activity passes becomes too high a price for a job", said Federation's Accounting Advisor Sebastian Vazquez.

And in the dialogue with surtidores.com.ar, it is enriched that, according to FEC studies among its associates, the cost is 8% and 9% so called. Gross margin without tax, resulting from the equation resulting from the sale price, deducted from the purchase price, minus all taxes and charges for each operation (VAT, IB, ICL, municipal, etc.).

For example, he explained the problem: "If a liter comes out of 40 pesos, 10% symbolizes the gross margin, so the car owner will charge 4 pesos of profits, of which the card will absorb its 1.5% commission that will be 60 cents, out of those 4 pesos," he said.

Regarding the prospect of what the Undersecretary for Trade Ignacio Werner voiced by CECHA's leader, Contador Vazcuez has assured that "any reduction that can occur to credit periods will be an improvement over the current situation"

Finally, Vazquez recalled the urgency to move in parallel with the publisher's cards, with other unresolved cases that hit the profitability of the mouth of fuel.

"The loss of temperature, asymmetry derived from the tax exemption from the fuel tax for regions far from Patagonia, the commission of banks for cash deposit and commissioning corresponding to every operator having contracts with oil companies are also issues requiring a quick solution, he concluded.

Commission problems

Talk between the station and the government is not new. They started last December, but they accelerated for the last time after the monthly inflation rate exceeded 4% several times and due to an increase in card payments.

With the new AFIP regulations, no store can stop offering at least one alternative means of electronic payments. That's why they continue to accept debit cards. Companies that provide this service charge a commission of 1%.

For the use of credit cards, the fee is charged between 1.3% and 1.5%.

"The profit margin on services is between 9% and 12%, so the commission represents between 13% and 20% of total profitability," said Carlos Gold, president of Cech, Nation.

The Executive Committee responded: "Service stations have always been major users" in the sector.

"We realize that they have lost profitability and that oil companies do not allow to transfer all their costs at prices, but stations have the lowest tariff on the market, which is 1.3%, while traders have to pay a commission of 2.35%," they added. and clarified that on January 1 they will fall to 2.10% by agreement with the Government.

However, bargaining is 18 business days that collecting companies are taking to lend payments.

"They finish 28 calendar days, and in other parts of the world the periods of accreditation are much shorter," Gold said.

In the sector they explain that the time of accreditation in other countries is less, since "interest rates are lower and the tariffs are higher." "In the United States, a commission paid by small businesses, such as stations, is between 3% and 4%," they said.

"The term is calculated so that the mismatch is neutral and the issuer does not have to put it in. In short, it is a loan that the trader provided with a guarantee from companies," they added, adding that the commission they charged corresponds to the credit risk they absorb, the costs of obtaining a client and managing collecting, among other things.

As an alternative, service stations are asking to share risks with oil companies. In addition to the IPF, which sells fuel on the consignment – i.e. Salaries commission to the station for the sold liter – the rest of the companies have a modality of sales.

"IPF is a customer with 1,500 outlets, negotiating directly with payment operators, it's different from each service station to talk separately," the company said, saying 30% of total invoicing Fuel sales are made through payment cards: "It's important if you consider that large customers have other payment methods, such as cancellation with checks. "

The second system, which uses the rest of oil companies, is to sell fuel to stations with a proposed price for public sale. "Each cell then moves the price according to its need, can even complement the commission of 1.5% IPF stations can not do it because the price is centralized," said another company, according to La Nacion.

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