FROM THE
Unleash Prosperity Hotline

No! Credit Cards Didn’t Cause High Gas Prices

The turmoil in the Middle East caused gas prices to soar to above $4.25 a gallon, but believe it or not, some in Congress are blaming credit cards. The fans of the IL Senator Dick Durbin’s credit card price control scheme are using high gas prices as an excuse to attach his legislation to a must-pass budget bill later this year.

It’s not as though the credit card companies have some kind of monopoly power over gas purchases. You can pay with debit cards, prepaid gas or, of course, cash to fill up your tank. These days that fill-up can cost $80 in some states. Not that many of us are walking around with hundred dollar bills in our wallet, which is why most people choose the convenience of the swipe of the plastic card or the cell phone tap.

Most credit card fees for a visit to the gas pump are between 50 cents and $1. It’s about six cents a gallon, which is hardly gouging. The real price gougers at the pump are the politicians who charge taxes that are five to 10 times higher than credit card fees.

The chart below from the Electronic Payment Coalition breaks this all down.

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