Comdata Corp. will increase prices beginning Aug. 13 by 500-800 percent for small to mid-sized truckstops, according to Natso Inc., the trade organization for truckstop operators. As a result, the association filed a complaint with the Federal Trade Commission (FTC), urging officials to prevent this fee increase, which Natso believes is a restraint of trade.

In its statement, which is posted on their web site, Natso said it is concerned that many of its members will be adversely affected by Comdata's decision.

"With this tremendous increase in prices for Comdata's program, smaller travel plaza operators will suffer serious economic injury because they are prohibited by Comdata from passing on the price increase to their customers," Natso's statement said. "Even if they were able to do so, the smaller operators will be at a competitive disadvantage with respect to the larger travel plazas, because these facilities will not be paying the increased price that Comdata is charging. Because travel plaza and truckstop operators sell fuel based exclusively on price and because the profits on diesel fuel sales are minimal, the smaller operators will not be able to compete with the larger ones and will ultimately be forced to close."

According to Natso, Comdata controls the majority of the truckstop third-party billing market and has secured its position by offering lower rates to fleets and raising rates for smaller truckstops.

"This move should cement Comdata's already-widespread appeal among trucking fleets, and make it more difficult for truckstops to choose Comdata alternatives," Natso said.

In addition to its FTC complaint, Natso has vowed to "take any other action it believes will advance and protect its travel plaza and truckstop members."

Comdata first announced the new fee structure in a letter to the affected merchants. The letter, dated July 10, 2001, was followed by a news release on July 12, 2001. In the letter, Comdata does not reveal its percentage-based fee until midway through the sixth paragraph of the eight-paragraph letter. Among the reasons for the change, Comdata lists are: methods and costs to provide transaction processing and information services; an increase in bad debt and subsequent write-offs; rising fuel prices; and the fact that other card associations use the percentage-based pricing system.

The letter to truckstop general managers said, "Comdata is continuing its roll-out of a new pricing structure for all Comchek transactions. With respect to your location, effective as of Aug. 13, 2001, Comdata will terminate its flat transaction fee ans subtitute in its place a transaction fee based upon a percentage of the face amount of the Comchek transaction."

The percentage amount will vary according to the type of transaction - automated authorization, voice response unit authorization, manual authorization and credit card transactions. The transaction fee schedule does not apply to cash advances, which will continue to cost $1, regardless of the face amount of the transaction.

In regards to Comdata's fee decrease for fleets, the letter to the truckstop managers said, "This corresponding fee decrease to trucking fleets is intended to assist in making your location(s) more attractive to fleets and drivers as they choose fueling and service center locations."

By Rene Tankersley, feature editor