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Merchant Processing Fees Have Got To Be Killing Tesla

Merchant Processing Fees Have Got To Be Killing Tesla

I wonder how much Tesla pays in merchant processing fees for charging my credit card $1.20, $1.44, $1.80 and $2.20 for the 4 times I have needed to plug into a Supercharger in my Model 3. They must be getting killed. I might suggest that they allow the charges to accrue and then only charge 1 monthly transaction for the total. In my case that would be $6.64 which would still suck for them but not as bad as 4 individual small charges.

ReD eXiLe ms us | February 1, 2018

This is one of the issues I brought up 3-1/2 years ago, when so many Tesla Enthusiasts were certain there would be a Supercharger Apocalypse if they remained free for all after the arrival of Model 3. I noted that the expense of administrating payment systems might not be worth the effort because of them. Others swore that Tesla would become... 'The NeXT EXXON!' by charging fees to Supercharge. They seemed to expect Superchargers would become point-of-sale kiosks or whatever. I explained that if the prices were high enough to be beneficial or profitable, they would also discourage the use of Superchargers due to unfair pricing. Tesla does not have a captive audience for electricity.

I was wrong about Tesla keeping credit card information tied to accounts. They did that anyway. Initially I thought they would sell blocks of Supercharger access via 'credits', instead of having financial transactions per charge, but I was wrong about that too. It could be Tesla has some good deals with credit card processing firms. Whatever they're doing, I hope it works out for them.

mntlvr23 | February 1, 2018

I believe that it is often around 2.9% + $0.30 per transaction, though Tesla probably has negotiated a more favorable rate.

pjalan | February 1, 2018

These days there are merchants that charge flat % w/o any transaction charge. They just rolled out pay per use SC. In future they can always switch to chargepoint model where they charge you in advance on blocks of $10 or $20. Once you are out of credit another block.

Xerogas | February 1, 2018

You do know who invented PayPal, right?

andy.connor.e | February 1, 2018

Its unwise to think that everything works the same for everyone.

OrangeinCO | February 1, 2018

Zerogas for the win! If only Elon had some underlying knowledge of online transactions and how they can batch for reduced fees...

Carl Thompson | February 1, 2018

@Xerogas:
"You do know who invented PayPal, right?"

Not Elon Musk. He didn't "invent" Tesla either.

Carl Thompson | February 1, 2018

PayPal was a service first offered in 1999 by Confinity. A year later Confinity merged with Musk's company X.com.

Tesla2018 | February 1, 2018

New Idea- Tesla Charging Meters- Bring lots of Quarters!