Valero unveils cash and credit discount at pump

摘要

Valero is about to roll out a new pricing strategy at the pump - discount for cash and its proprietary credit card - in an effort to help marketers cope with crippling card costs. The company will also provide marketers with free signage promoting the new offer. At the same time, it plans to increase CRIND limits by amounts ranging from $25 to $50, depending on the card. Valero calls the new program Pump A Discount (PAD), a name it has trademarked. The price at the pump will automatically roll back if a consumer uses Valero's fee-free proprietary card; cash customers will have to pay inside to get the discount. It will be up to marketers to decide how much of a discount to offer. At a processing fee of 2%, the savings on $4/gal would be 6-8 cts/gal, depending on how retailers handle transaction fees and their cash/card ratio. They also have the option of tying the discount to just the Valero card, rather than both card and cash.