Argentina: Due to problems with the profitability of more and more service stations, it does not accept credit cards



Between 800 and 1,000 service stations ceased to offer credit cards as a means of payment in contrast to credit periods and high commission costs.

This is shown by the Confederation of Trade Unions for Hydrocarbons (Cecha), which combines 3700 plants.

On the other hand, service providers show that the context is complex and that funding costs have become more expensive, reports La Nación.

"Credit card payment is not a direct cause of a decline in profitability, but because of the economic problems that the activity is taking place, it becomes too expensive for the company," he said. accounting consultant Sebastián Vázquez.

In a conversation with the surtidores.com.ar website, in conversations that FEC studies among colleagues cost 8% and 9% of the so-called gross margin without taxes, derived from the equation derived from the sale price, deducted from the purchase price prices, minus all taxes and fees for each activity (VAT, IB, ICL, municipality, etc.).

He explained the problem with the example: "If a liter shows 40 pesos, 10% symbolizes the gross margin, so the owner of the sales machine will charge 4 profit packs, of which the card will absorb 1.5% of the commission, which will be 60 cents, of which 4 pesos, "he said.

Regarding the prospect of progress from what Undersecretary for Trade Ignacio Werner told CECHA leaders, Contador Vázquez assured that "any reduction that could occur in credit periods will be an improvement in the current situation"

In the end, Vázquez pointed to the need to move in parallel with card issues, with unresolved issues that have affected the profitability of the mouth of fuel.

"The loss due to temperature, asymmetry resulting from the exemption from fuel taxes to regions far from Patagonia, the bank commission for cash deposit and ordering that corresponds to each operator having contracts with oil companies are also issues that require a rapid resolution, "He concluded.

Talks between posters and the government are not new. They started last December, but accelerated lastly after monthly inflation 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 method of electronic payment. That's why they still accept debit cards. Companies that provide this service charge a fee of 1%.

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

"The profit margin of service stations ranges from 9% to 12%. That's why the commission represents between 13% and 20% of total profitability," said Carlos Gold, president of Cecha, in La Nación.

The Executive Board replied: "The service stations have always been a big beneficiary" in this sector.

"We understand that they have lost profitability and that oil companies do not allow them to transfer all their costs at prices, but the stations have the lowest tariff on the market, which is 1.3%, and merchants have to pay a commission of 2.35. explained that on January 1 it will fall to 2.10%, in agreement with the government.

The relevant bargaining is 18 working days, which are collected by collecting companies for payment.

"At the end, there are 28 natural days. In other parts of the world, accreditation periods are much shorter," Gold said.

In the sector, it is explained that the accreditation time in other countries is lower because "interest rates are lower and tariffs are higher". "In the United States, the fee paid by small businesses, such as stations, is between 3% and 4%," they said.

"The term is calculated in such a way that the inconsistency is neutral and that the issuer need not be financed. In short, this is a loan granted by the trader to a company guarantee", adding that the commission they charge corresponds to credit risk, absorbing, customer acquisition and collection administration.

In contrast, service stations require the sharing of risks with oil companies. Except for YPF, which sells fuel on the shipment – that's why it pays a commission for a station for a sold liter – other companies have a sales method.

"YPF is a customer with 1,500 outlets, is negotiating directly with payment providers. Otherwise, for every service station that needs to speak separately," the company said, saying 30% of the total charge for selling fuel through payment cards: " It's important to note that major customers have other payment methods, such as canceling the checks. "

Another system used by other oil companies is to sell fuel to stations with a proposed price for sale to the public. "Each station then moves the price according to needs; You can even charge a commission of 1.5%. YPF stations can not do this because the price is centralized," they said in another company, according to La Nación.

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