I've learned just how big an issue credit cards are right now. Gas stations are complaining that more money from gas sales is going to the credit cards companies than to the stations selling the gas. The stations say the problem is the credit card companies charge a percentage fee rather than a flat fee for a gallon of gas. So, when gas was a buck a gallon, the credit card companies got about 2.5 cents a gallon. Now, with gas at almost $4 a gallon, they're getting almost 10 cents a gallon. The stations say they clear far less than that for each gallon sold.
It reminded me of what a friend who owns a bar/restaurant told me a few months ago. Two years ago about half his customers paid by credit card. Last year it had jumped to 85%. Now it's almost 100%. He thinks people are cash strapped. His problem? He's got to pay a larger percentage to the credit card companies than the gas stations. For a small business, that can really bite into the bottom line. The gas stations say their also affected by the fact that more and more customers use plastic now. So, do you think the the credit card companies are doing great? Don't count on it. Because more customers are falling behind on paying their balances. It's a painful cycle.

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