What is the BP FDMS CAT charge on your bank statement?

The BP FDMS CAT charge is a fee that may appear on your bank statement or credit card bill after purchasing a BP gas station using a credit or debit card. This charge relates to the processing of credit and debit card transactions at BP stations by First Data Merchant Services (FDMS). Understanding what the BP FDMS CAT charge entails can help shed light on fees incurred when paying for gas with plastic.

Have you ever seen “BP FDMS CAT” listed as a charge on your account statement and wondered what it was for? You’re not alone. This unique-looking fee appears on statements but the name doesn’t explain its purpose. With gas prices high, every charge feels significant. Learning more about the BP FDMS CAT fee and why it occurs can offer peace of mind for consumers and save frustrations down the road.

By digging deeper into what exactly the BP FDMS CAT charge represents and how credit card processing works at BP stations, you’ll have insight whenever this fee shows up after fueling up. Continue reading to get clear answers about the meaning and components of this mysterious charge. Understanding all the small but necessary costs behind card transactions can empower you as a consumer.

Why BP FDMS CAT charge appear on your bank statement?

When you pay for gas at BP using your credit or debit card, a company called First Data Merchant Services (FDMS) is responsible for processing that transaction. FDMS makes it possible for you to pay right at the pump by card. They verify your card details are correct, get approval for the payment from your bank, and transfer the money to BP. But all of this work by FDMS carries a cost.

To cover their expenses for providing these important processing services, FDMS adds a small fee to each card transaction at BP. This fee shows up on your statement as the BP FDMS CAT charge. 

The charge allows FDMS to reimburse themselves for verifying cards, getting authorizations, moving money between banks, and maintaining the technology needed for secure gas station payments. So in short – the BP FDMS CAT charge appears because it’s how FDMS recoups the processing costs associated with customers using credit or debit at BP pumps.

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Components of BP FDMS CAT Charge

The BP FDMS CAT charge has a few different parts. The first part is a processing fee that FDMS charges each time they handle a payment made by card at BP. It takes work for FDMS to verify the card information, get approval for the payment, and transfer the money – so this fee pays for those processing services.

Interchange Fees

An interchange fee is included in the BP FDMS CAT charge. This fee goes to your bank when a transaction is processed at BP using your debit or credit card. Banks charge each other interchange fees so your bank gets paid for letting customers make purchases outside of their branch. The fee amount can vary based on the type of card used.

Equipment Rental Fees

FDMS needs card terminals at each BP pump to allow contactless payments. They lease these terminals from other equipment companies. The rental fees charged in the BP FDMS CAT are used to cover the cost of leasing the card terminals that enable drivers to pay right at the pump.

Service Charges

FDMS provides ongoing services like customer support, security monitoring, and systems updates to keep transactions running. The service charges portion of the BP FDMS CAT funds these valuable customer assistance programs and technology updates that help ensure secure and reliable payments at BP gas stations. It allows FDMS to support BP stations with the services needed to keep customers happy.

How does the BP FDMS CAT charge appear on your bank statement?

The BP FDMS CAT charge can show up on your bank statement in different ways depending on your bank. But no matter what it’s listed it will always relate to a purchase you recently made at a BP gas station using your debit or credit card. Some banks keep the name simple and label it exactly as “BP FDMS CAT”. Others may list more details like “BP FDMS CAT WARRENVILLE” including the location.

No matter the exact wording, you can be sure the charge is legitimate if you fueled up at BP around that time. Look for familiar details like the amount charged matching your gas receipt if you need confirmation.

Don’t hesitate to contact your bank if you can’t match a charge to a recent transaction – they can help clarify. But in general, don’t be alarmed by the BP FDMS CAT on your statement – it means FDMS has passed on the credit card processing costs from your last fill-up.

FAQ’s

What is the BP FDMS CAT charge?

The BP FDMS CAT charge is a fee that covers the cost of processing credit/debit card payments at BP gas stations. It appears on bank statements after fueling up using a card. The charge goes to First Data Merchant Services who handle the transaction verification and funds transfer.

Why am I charged the BP FDMS CAT fee?

You are charged the BP FDMS CAT fee any time you use a credit/debit card to purchase gas at a BP station. This fee allows First Data Merchant Services to recoup the costs involved in handling card transactions at BP pumps. Without this charge added, card payments would not be possible at BP.

How much is the BP FDMS CAT fee?

The BP FDMS CAT fee amount varies per transaction but is usually a small percentage of the total fuel purchase. It ranges between 1-3% of the total gas spend depending on factors like the card used. The fee is not set by BP or the customer’s bank.

How do I dispute the BP FDMS CAT charge?

If you believe a BP FDMS CAT fee was charged in error on your statement, first check that you did purchase gas from BP using a card on the date listed. If there’s no matching transaction, contact your bank to dispute the charge within the timeframe specified. Provide any relevant paperwork to support your claim.

When will I be charged the BP FDMS CAT fee?

You will be charged the BP FDMS CAT fee immediately after your purchase is processed at the BP gas pump. The fee will then appear on your next statement from your bank within a month. There is no delay – it’s applied at the point of sale along with the gas charge.

Can I avoid the BP FDMS CAT fee?

No, you cannot avoid the BP FDMS CAT fee if paying for gas using a credit/debit card at a BP station. This charge is mandatory to cover transaction processing costs. Your only alternative is paying with cash instead of a card to circumvent this fee.

Who can I talk to about the BP FDMS CAT charge?

If you have any other questions about the BP FDMS CAT fee, contact either your bank or First Data Merchant Services for assistance. Both should be able to verify charge details and clarify how it works since they handle payment processing and fee collection.

Final Thoughts

BP FDMS CAT charge is a small fee that pays for the important service of processing credit and debit card payments at BP gas stations. First Data Merchant Services takes care of verifying cards, getting authorization from banks, and transferring funds between parties when customers pay at the pump. 

While it may seem unclear on bank statements, the BP FDMS CAT charge is how FDMS recoups its costs to keep these gas station transactions quick, contactless, and safe for everyone. With a better understanding of what it covers, consumers can avoid worries about this routine fee after filling up their tanks at BP.