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Convenience Store Decisions: Credit Card Break for Shell Dealers

Oil company has secured a permanent MasterCard merchant service fee reduction for its branded operators.

Shell Oil Products said it recognizes that the rising cost of gasoline is crushing fuel margins and it is offering its branded marketers a break.

To ease costs for its branded marketers, the Houston-based refiner-marketer has negotiated a permanent MasterCard merchant service fee reduction for its branded operators, effective immediately. The permanent fee is being reduced from 2.10% plus 10 cents to 2% plus 10 cents.

This action is intended to continue to ease some of the pressure that the busy driving season can exert on operators through increases to their credit card expenses, the company said.

Additionally, Shell continues to negotiate with the credit card associations regarding the high merchant service fees imposed on Shell-branded operators. As a result, it is again extending its current, temporary reduction to transaction fees until September 30. The temporary fee reduction will be extended on all electronic transactions for Visa, MasterCard, and American Express credit card transactions. Here is the discounted rate:

Regular Fees vs. Temporary Reduction

Visa                   
From 1.95% plus 10 cents per transaction to 1.75% plus 13 cents.

MasterCard
From 2% plus 10 cents (new permanent rate) to 1.80% plus 13 cents

American Express
From 2.90% plus 15 cents to 2.70% plus 17 cents

The reduced rate was originally offered as part of a push by the oil company to increase the number of Shell credit card cardholders. In addition to incentives for marketers to promote the Shell Platinum MasterCard, new cardholders received triple rebates for 60 days on all Shell gasoline purchases, oil changes at Jiffy Lube locations and everyday purchases. That means cardholders were earning rebates of up to 50 cents per gallon when using the card for Shell fuel purchases.

The promotional results surpassed the previous campaign’s achievement by 237%. Shell booked 33% more new accounts through the promotion than the target goal, and the number of applications received was 24% greater than the company had forecasted.

by CSD Staff ([email protected])

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