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7-Eleven stores in Maryland have joined a national campaign to raise awareness of the burden credit card transaction fees place on retailers.

To date, the chain says its stores have obtained more than 1 million consumer signatures nationally — surpassing its goal — supporting federal legislation that would allow retailers to negotiate with credit card companies on the fees assessed for every credit card sale. Such a bill was introduced this year but did not pass.

Credit card issuers charge fees ranging from 2 percent to 3 percent. Congress recently passed legislation to benefit the consumer, giving them better protection against exceeding their credit limits and against rising rates.

"With the bad economy, people tend to use credit more to increase the cash they have on hand," said Mark Chiochankitmun, president of the Washington Metropolitan 7-Eleven Franchise Owners' Association in Derwood. "They never know we, as merchants, have to pay. … It's getting really bad." The association includes 80 7-Eleven stores in the Maryland and Washington region.

Transaction fees cost U.S. convenience stores $8.4 billion in 2008, far more than the stores' $5.2 billion in profits, according to the National Association of Convenience Stores in Washington.

"7-Eleven stores are operated by franchisees who represent more than 6,000 small businesses on Main Streets and in neighborhoods across America," Darren Rebelez, executive vice president and COO of 7-Eleven of Dallas, said in a statement. "This petition drive is a grassroots effort to get a fair deal, spearheaded by small business owners in the communities where they live and with the customers they serve every day."

The 7-Eleven petition campaign is to run through Aug. 10.

An average of $2 out of every $100 Americans spend goes to transaction fees, and for many businesses, transaction fees are now their highest non-labor cost, according to 7-Eleven information.

"People come into the store and buy a $1.50 newspaper and we'll make a 20-cent profit but the fees amount to 40 cents, and we may lose 20 cents," Chiochankitmun said.

"It's a huge issue for our guys," said Paul Fiore, spokesman for the Washington Maryland Delaware Service Station and Automotive Repair Association, adding that the problem has grown since gas prices spiked following Hurricane Katrina in 2005.

Transaction fees are higher in the U.S. than in most countries, Fiore said.

"To date, we have been unable to convince these companies to come to the table to negotiate fair fees," Rebelez said.

Zerihun Geletu, a Lanham resident who purchased a 7-Eleven franchise last year, said he pays more than $1,500 per month in transaction fees. Other franchisees such as Celeste Dean, who runs a White Marsh store, say they will pay as much as $6,000 in fees this year.

Dean emphasized that these fees are passed on to consumers in higher prices.

"We're paying out the nose, the customer is paying out the nose, and the credit card companies have carte blanche," said Don Hefner, president of the Baltimore 7-Eleven Franchise Owners Association in Fallston, which represents 70 stores in Maryland. "The customers are on our side in this."

Trish Wexler, spokeswoman for the Electronic Payments Coalition, which represents banks and card issuers Visa and MasterCard, said the fees have remained constant over the last decade, but card use has gone up, resulting in the larger impact on businesses.

She said that fees are negotiable and that card issuers can be found easily through online searches.

"The fact that a company known for price gouging their customers, who realized huge profits last year, is trying to trick their customers into helping them make even more profits is a little hard to swallow," Wexler said, adding that when customers use cards, 7-Eleven gets more sales and higher profits. All told, 7-Eleven stores generated more than $53.7 billion in sales in 2008, according to 7-Eleven information.

Wexler also emphasized that if fees are reduced, card issuers may lower benefits or bring back annual fees to mitigate the lost revenues.

But convenience stores and gas stations are not the only ones suffering, as other small businesses such as restaurants juggle fees along with rising energy costs.

"Fees are negotiable for large retailers like Wal-Mart and Target, but the small businesses lack the ability," said Melvin Thompson, senior vice president of the Restaurant Association of Maryland in Columbia. "We can't just stop taking credit cards." The association has about 3,000 members; the state has about 9,600 restaurants.

Thompson said U.S. restaurants will pay more than $3 billion in transaction fees this year.

He said his association is working with its national partners, as well as lawmakers, to support a negotiations bill. Thompson said he thinks such a bill will be reintroduced and receive strong backing in Congress next year.

"Each retail business is supporting this in the way that works for them," he said.