Credit extended until November 1 - Gas retailers, financial institutions discuss card use

Chad Bryan, Gleaner Writer

Amid immense concern from the public about the plan to stop accepting Visa and MasterCard for petrol purchases, the Jamaica Gasolene Retailers Association (JGRA) decided to postpone the move until November 1. The decision was taken shortly before the planned implementation date of October 1.

In the meantime, ongoing meetings and consultations are scheduled to take place this month with members of the Bankers Association and other stakeholders giving their input on the final decision.

Newly appointed JGRA President Derrick Thompson, who took office on September 6, noted that the decision to postpone was taken following extensive input by various players. The president also
stated that if there was a reduction in processing fees by banks, then
gasolene retailers would continue to accept credit
cards.

Automotives reported last
month that as of October 1, service stations that fall within the ambit
of the JGRA (which is at least 85 per cent of the country's service
stations), would no longer accept MasterCard or Visa credit cards for
fuel sales. In August, members of the association decided to take this
stance as part of cost-saving measures. There had also been reports that
several service stations had gone out of business or were on the brink
of failure.

Immediate past president of the JGRA,
Trevor Heaven, explained that "the proposed plan of action was that we
would no longer want to take Master and Visa credit cards. These card
charges are prohibitive". He added that if customers were willing to pay
the processing fees then they would continue to accept those types of
card.

"If customers are prepared to pay the processing
fees for the Master and Visa credit cards, then we'll accept them. This
is three and half per cent plus GCT rate," said Heaven. Only cash,
debit cards and the National Commercial Bank's Keycard would be
accepted. Even then, Heaven said his organisation had been seeking to
lower those processing fees.

Welcome
move

The postponement has been welcomed by motorists
with whom Automotives spoke. One of them, Jodi-Ann,
said she had been dreading not being able to use her credit card at the
pump. "I honestly don't know how I would manage. Gas is one of my major
purchases and without the credit card to extend my salary that little
bit every month I don't know what I would do. I know I will have to
catch up with the credit card expenditure, but I was really hoping that I
could plan for it, so this is very good news," she
said.

However, a taxi driver who gave his name only as
'Skill', with whom Automotives spoke at a gas
station on National Heroes Circle, was unsympathetic to the credit card
users.

"Yu nuh see how we dweet, put een the petrol likkle likkle? Cash
fe gas we say, mi no inna nutten wid no card," he
said.