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29 comments on Racking up the credit card debt

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mw on August 24, 2005 - 12:39pm Permalink | Subthread | Comments top
question du jour: what's the percentage of fully electronic pay at the pump stations compared to the year prior...
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mw on August 24, 2005 - 12:52pm Permalink | Subthread | Parent | Comments top
Found an old set of stats -- suggests that in 2004 the pay at pump numbers must be much higher. So perhaps the increase year over year of new pay at pump locations is less behind credit card purchases.

There is probably something interesting in the numbers in the topic article but what... could be lower incomes increasingly resorting to credit cards for fuel purchases. When I was a poor kid I certainly avoided using my credit card unless I was desperate.

http://www.beverage-digest.com/editorial/010608.php

Pay-at-the-pump.  In U.S., there were 119,751 C-stores at year-end 2000; up just +0.3% from 1999.  C-store expert notes about 78% of all U.S. C-stores -- and 96% of new stores -- have gas pumps.  Problem comes from fact that number of C-stores offering pay-at-the-pump increased dramatically over last five years (chart).  At year-end 2000, 69% of C-stores offered pay-at-the-pump vs just 17% in 1995.

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Yankee on August 24, 2005 - 12:53pm Permalink | Subthread | Parent | Comments top
Yes, this is the only relevant question w.r.t Pay at the Pump. If there aren't significantly more stations now than last year, then the 54% vs. 70% figures are more likely attributable to people not wanting to pay high gas prices out of pocket.
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Donal on August 24, 2005 - 1:15pm Permalink | Subthread | Parent | Comments top
There might be another explanation.  I used to make debit purchases at supermarkets and indoors at Sheetz, a big gas/convenience store in the PA/MD area.  Soon after I opened an account near my new office, my bank began to charge 50 cents for each *debit* transaction.  So if I go to Giant, Weis or Sheetz and buy something, and tap in my ATM number, there's an extra charge on my statement.  If'n however, I choose *credit* transaction, there is no charge (to me).  Giant and Weis aren't dumb, their machines practically beg you to type in an ATM number, but I soon learned to get around that.  And at Sheetz, I spend so much on gas outside that I don't automatically run in and buy anything anymore (their subs used to be great), so less chance of a debit transaction at the counter.

Plus, who carries enough cash to pay for 40 or 50 dollars of gas?

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Yankee on August 24, 2005 - 1:22pm Permalink | Subthread | Parent | Comments top
OK, maybe. But again, did this bank policy change between 2004 and 2005 for most people? It's your last comment that's exactly the point. No one carries that much because no one wants to spend that much. So they pay with the credit card.
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Donal on August 24, 2005 - 1:43pm Permalink | Subthread | Parent | Comments top
I think so.  The fellow working next to me said he has seen local news articles on the change in policy, and that it is widespread around here.  

And I should have noted that the money comes out of the same place, my account, with either credit or debit transactions.  The only difference is who pays the transaction fee.  

I did use a classic credit card for gas last year, when I was a self-employed builder.  I hated to do it, but I hadn't made any money yet.

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29 comments on Racking up the credit card debt

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