Comments on: Cash vs. Credit Card: Gas Stations Charging Different Prices

By: Stormy Dragon

Stormy Dragon — Tue, 10 Apr 2012 21:45:58 +0000

I hear what you are saying, but cant they just as easily do that with the full charge amount?

Yes, but by then you already have the gas, so if it’s a bad card, it’s very easy for you to make a quick get away.

By: Owen Chenault

Owen Chenault — Fri, 23 Mar 2012 22:37:40 +0000

Most of the gas stations here do this bullshit by charging customers 5 to 15 cents a gallon more for gasoline if they use a credit or debit card versus paying with cash. Buy your gas at Speedway,Meijers,Kroger or any gas station that does not pull that bullshit ripping off customers

By: Consumer

Consumer — Tue, 20 Mar 2012 21:22:06 +0000

If you do not want “clueless” consumers complaining about what they are paying, then you should advertise the ACTUAL price the consumers will be paying; not a reduced price designed to lure unsuspecting consumers to your station. The issue is not whether gas station owners are profiting from this hidden charge. The issue is that the gas price advertised is misleading and is deceptive and, it is.

By: Sirquin

Sirquin — Mon, 19 Mar 2012 15:08:41 +0000

I would like to know why I am being charged the extra credit card charge for gas when I use a cash card bought from the same gas station? We buy these from a Texico station and when used they say they have to treat them as a credit card.
Confused in Taft California

By: Ike

Ike — Wed, 14 Mar 2012 23:02:38 +0000

I just noticed that a new Safeway grocery store in our area has included a gas station at its site with very competitive prices. The station is adjacent to the street, just as with most other gas stations, with easy access. I suppose it’s possible that this gas station is a loss leader to bring customers to the grocery store, but it offers no more convenience than other stations. In fact, if you need something at the grocery store, you would still have to leave the station and park your car near the entrance to the store. So, my question is: why would a large grocery store chain spend the money to build a gas station, given the high cost of doing so, if the facility would not make enough money to justify the expenses of building and operating the station and buying the gasoline from an oil company? I can’t imagine that any volume discounts they might receive from any oil company would justify the cost, either, especially given the very competitive prices that the grocery store charges for its gasoline (and they accept credit cards without charging more). A major corporation doesn’t invest in a business that won’t result in a substantial profit for the company and its shareholders. The numbers we have been given by the station owners on this board can’t be accurate.

By: Gas Man#2

Gas Man#2 — Wed, 14 Mar 2012 13:14:57 +0000

I also own a gas station. Gas Man is 100% correct. If a customer comes in and spends $60 on an American Express Card, the transcation costs us $2.10(3.5%). We make $1.50 on the 15 gallon purchase. This is why we have to charge more for credit. If you like a station ask for the gas companies credit card(I.E. Mobil, Gulf,Sunoco). The station owner does not get charge a fee for these cards and therefore should offer you the “CASH” price for their credit card.

By: Cindy

Cindy — Sat, 03 Mar 2012 16:42:16 +0000

Thanks for the lesson in gas station economics. I had no idea. I wonder if you could tell us if you are one of the larger chain stations or not? And also if you are a chain, if one uses the chains credit card, does it still cost you if at all, or less than the other major credit cards, ie; visa and master-card.

By: Cindy

Cindy — Sat, 03 Mar 2012 16:37:12 +0000

I hear what you are saying, but cant they just as easily do that with the full charge amount?
If it turns out to be a bad card, its not like they get the extra $1 for their troubles.
And that $1 charge does not come off right away, sometimes 10 to 14 days. I know $1 does not sound like a lot, but multiplied by all of us who buy gas this way? They are sitting on a lot of money. And how are they deciding who to pull this $1 from? They seem to pick my husbands card over mine, it doesn’t happen to me. I cant figure out who is doing it, the gas station, the credit card, or the bank. None of them are owning up to it.

By: Gas Man

Gas Man — Mon, 27 Feb 2012 00:19:10 +0000

Consumers are clueless when it comes to the gas station business. Let me break it down for everyone so they will be able to understand what goes on.
The average yearly margin on a gallon of gas for a station owner is 10 cents. If a customer uses a credit card, the fee for the owner of the station averages 2 1/2 % of the sale price per gallon.
Example : I sell a gallon of gas for $3.65 per gallon. My profit margin is 10 cents on that gallon before expenses. The credit card company (transaction fee) they charge me on that gallon is 9 cents. That leaves me a measly 1 cent profit before paying my bills to sell that gallon of gas (employee/cashier, electricity to pump the gas, repairs and maintenance). Gas station owners actually lose money on gas, especially now that prices are so high.
We are being forced to go to a cash discount or charge more for credit because we are being put out of business with all these fees. The government makes 35 cents on a gallon of gas and we make 1 penny? Get the picture. If we raise prices to be able to cover the credit card fees, we are labeled PRICE gougers. When you go to a restaurant, their profit margins are 300 % or more per plate, so their profit margin is so high that credit card fees do not affect them as badly. The credit card companies are making billions in credit card fees while leaving me 1 penny per gallon and I am the one left with all of the costs.
Cash discount at this point is our only option.

By: vkicki

vkicki — Sat, 11 Feb 2012 20:10:45 +0000

my experience has been that service stations often “try” your card when you get gas to see if its good………..usually the dollar comes off and the real price goes on i bet while you see them on your account they dont stay on there long……..its just a way to verify that you have a valid………open card…….if you are SURE you have not bought this gas (ie read the small print at the pump) i would call my bank…….its possible that someone got a hold of your credit card info and may try to use it!! hope that helps Vicki

By: Kris

Kris — Wed, 01 Feb 2012 19:17:36 +0000

Ban together to fight the merchants who bring consumers what they want??? Really? How about asking the credit card companies why they have to charge both the merchant and the consumer?

By: Kris

Kris — Wed, 01 Feb 2012 19:14:44 +0000

I agree with you entirely! This reminds me of people complaining about the guy in front of them on the airplane reclining his seat…why do the airlines jam as many seats as they do, making it impossible for some people to put their seats upright?

By: Dina

Dina — Sat, 31 Dec 2011 20:05:00 +0000

Does anyone know why I am being charged $1 somewhat frequently by Exxon Mobil gas stations. I have not even bought this gas and I was charged two days in a row. I live in NJ.

By: Becky

Becky — Sat, 31 Dec 2011 15:32:38 +0000

We do have cash cards their called debit cards but the gas stations still charge us for those like their credit cards. I don’t use a credit card, only my debit. That way I never spend what I don’t have but I still get screwed at the pump just like a regular credit card user. And if I’m not mistaken the banks are no longer allowed to charge retailers for swiping debit cards the way way credit cards are.

By: Becky

Becky — Sat, 31 Dec 2011 15:28:48 +0000

Only 2 of the Big 3 were bailed out Ford did it all on their own

By: Ike

Ike — Thu, 29 Dec 2011 08:56:22 +0000

In response to the store owner, I don’t see how a gas station owner could possibly stay in business when he is supposedly paying more to the credit card company than he makes in gas sales, given that most of his sales are probably from gasoline and that most people pay with credit cards because they either don’t carry enough cash or just don’t want to bother going inside the shop to pay, when its so much easier/faster to pay at the pump with a card. It’s hard to believe that a typical gas station owner makes enough profit selling snacks and other items to stay in business. Yet, the individually-owned stations continue to exist. I’m not sure we’re getting honest numbers.

By: bumperhanger

bumperhanger — Thu, 29 Dec 2011 01:42:54 +0000

A big amen to you, who uses the head on his shoulders.

By: bumperhanger

bumperhanger — Thu, 29 Dec 2011 00:39:19 +0000

As a store owner I know how little profit margins are. Gas is the most expensive cost to stores and the least profit. At $3.50 per gallon it costs $28,000.00 dollars to fill a 8000 gallon tank. Add .08 cents average markup which equals $640.00 gross profit on $28,000.00 dollar investment. That is 2.24% gross profit margin. Then you have to pay a cashier, power to run pumps, upkeep on pumps and dispensers which is expensive when lightning strikes and breakdowns. Then the credit card companies take 2 to 3 % of the $ 3.58 per gallon of gas. $3.58 x 10 gallons = $35.80 = .80 cents gross profit to store for a cash sale. Credit sale of $35.80 – 2% fee of 71.4 cents plus .19 cents charge per transaction fee = .90.4 cents total credit card fees which gives the store owner a .10.4 cents loss on the sale to give you the privelage to use you credit card. Do you go to work and pay your employer .10.4 cents or more for the privelage to work for him, or does he pay you? If stores cannot make a profit, they cannot stay open. Then where will you get you gas to go make your money? Be considerate if you want items inside on your card, go in first get your soda and prepay for your gas on same transaction where the store wont loose his . 25 cent profit on the soda on another transaction fee of .24 cents for a dollar item..

By: Chris Krollage

Chris Krollage — Wed, 09 Nov 2011 03:12:36 +0000

I’ve seen the car wash, and those places say so clearly on their sign as required by law. Stating discount with Car Wash. the Cash Pricing Signs are usually much less conspicuous.

By: Chris Krollage

Chris Krollage — Wed, 09 Nov 2011 03:10:19 +0000

I love when they put the grades in odd orders so if you don’t read the pump clearly you end up pumping 93 instead of 87 for a vehicle that doesn’t need premium. I’ve seen it where its Premium, Regular then finally Mid-Grade.

By: Chris Krollage

Chris Krollage — Wed, 09 Nov 2011 03:07:37 +0000

Do you advertise the “Cash Price” and have a clearly legible sign that can seen from the highway that say “Cash Only Price”? By the way, this is a Representative Republic, not a democracy, it says so in the US Constitution and even in the Pledge of Allegiance.

By: Chris Krollage

Chris Krollage — Wed, 09 Nov 2011 03:02:09 +0000

If they don’t want to pay the Fee to the CC companies, the gas station should go cash only and do away with pay at the pump. But the real problem I have and many others is not the difference in price, but the fact that they advertise on the sign the cash price and only after you already parked and started to get ready to pump there is the little sign that tells you cash and credit pricing in effect.

By: tiffed in CA

tiffed in CA — Mon, 07 Nov 2011 13:34:46 +0000

We have a gas station out in our area of So Cal that charges 12 cents a gallon more if you pay with debit or credit card. I thought the law was they could charge no more than 5 cents more for credit, but this station really reams you… (Shell, corner of Warren Road and Florida Ave Hemet)

By: JOE

JOE — Mon, 17 Oct 2011 02:19:47 +0000

I OWN A GAS STATION. WHEN PRICES WERE OVER $4.00 A GAQLLON WE ACTUALLY LOST MONEY IF A CUSTOMER USED AN AMERICAN EXPRESS CARD. DO THE MATH. 25 GALLONS COST US ($100 X 3.25%FEE=$3.25 ON 25 GALLONS OF GAS AFTER PAYING THE TAXES WE MAKE 25 X .12= $3.00. DOESN’T SEEM FARE TO US EITHER BUT WE HAVE TO CHARGE MORE FOR CREDIT TO SURVIVE. AS FAR AS INSIDE THE STORE SALES, WE MAKE A GREATER PROFIT MARGIN ON THOSE ITEMS(COFFEE, SODA, ETC) SO WE CAN ABSORB THE CREDIT CARD FEE.

By: qixx

qixx — Fri, 07 Oct 2011 00:44:09 +0000

I believe some of the new legislation out of Washington this year made it legal for all businesses.

By: Nancy Marcotte

Nancy Marcotte — Tue, 04 Oct 2011 18:13:24 +0000

How is charging extra for a credit card purchase legal. I know it digs into profits, but it is the cost of doing business. I own a small cafe, I can’t raise my prices for credit or debit card purchases. In fact I don’t know any other business that can. How do gas stations get away with it?
U

By: Steven

Steven — Sun, 02 Oct 2011 14:12:29 +0000

These are the facts: Every time you pay with a card, the bank earns a fee. That fee comes from someone. The merchant pays it, and, if he’s smart, he passes it on in the form of higher prices. That means those who pay with cash subsidize your dirty little credit habit that makes the banksters rich.

Those of us who don’t want to give our hard earned money to the banksters deserve a discount. Those of you who are either not smart enough to understand or too lazy to care deserve to pay more. Sorry, but why should I pay for your habit?

By: Ike

Ike — Sun, 25 Sep 2011 09:32:08 +0000

If a gas station posts both the cash and credit prices on a large sign for all to see, but the credit prices are clearly above the rate its nearby competitors charge and the cash prices are identical to nearby competitors’ cash or charge rates, it would seem that a strong case could be made by the credit card companies and the states that have laws prohibiting surcharges, that the higher credit prices DO include impermissible surcharges. California (and many other states) does have such a law (see below from Visa’s website).

I have seen an independent station in CA that follows this practice. Its two closest competitors (two other independent stations on different corners of the same intersection) post only one set of prices for those using either form of payment. These competitors prices are, however, identical to the cash prices at the first station, and about 6 cents lower than the first station’s credit prices. If the intent of Visa’s rules and state laws are to protect credit card users from paying extra to use their cards, the spirit of the rules/laws are being violated. Enforcement is needed if the credit card companies and the states are serious about the surcharge prohibition. Otherwise, the rules and laws should be abandoned and the pretense ended!

From Visa:
CALIFORNIA POSSESSES A “NO SURCHARGE RULE” FOR CONSUMER PURCHASES
“No retailer…may impose a surcharge on a cardholder who elects to use a credit card in lieu of payment by cash, check or similar means…”
Statute: Cal. Civ. Code § 1748.1(a) (West)
Discounts for Cash Payments are allowed in California
“A retailer may, however, offer discounts for the purpose of inducing payment by cash, check or other means not involving the use of a credit card, provided that the discount is offered to all prospective buyers.”

By: BeHappy

BeHappy — Tue, 13 Sep 2011 16:26:31 +0000

If you want the discount carry cash for goodness sake! Some companies like the one I work for pay 5% fees for running a card…I said the company pays this NOT you. Get over it!!!! Companies shouldn’t have to pay for your laziness to go to a bank. Get to know the person that works at the bank…yes there is a live person dealing with money. Carry some cash help a small business make some money for once.

By: nacny

nacny — Mon, 12 Sep 2011 01:45:45 +0000

What’s the different it make from Gas station listed Gas w/car price 20 cents cheaper than Gas w/o car wash, then premium. I ‘ve seen gas station listing that price that way forever. It’s just cash VS credit. Gas stations pay high credit card fee and they can no longer absorb cost. I will keep using credit card at the pump, until Cash back or mileage reward no longer make sense for me. Stop screaming, go somewhere else. Spoiled consumer.

By: qixx

qixx — Wed, 31 Aug 2011 06:27:29 +0000

Most stations (all the ones in my area with a store branded credit card) charge the same for using the store brand credit card and for using cash. The big one here is the new shell card that links to your bank (Target has a similar card) that essentially works like an electronic check pulling from your account instead of using credit. Lower fees and at shell they even give a discount using the card over those who pay cash (or credit).

By: Andy Rogers

Andy Rogers — Sun, 21 Aug 2011 06:54:20 +0000

My beef is with merchants who put out big sings advertising their prices WITHOUT noting anywhere on the big sign that it is a cash-only price. That’s misleading advertising.

By: Brad Chaffee

Brad Chaffee — Wed, 17 Aug 2011 05:08:03 +0000

It’s kind of hilarious to see so many people getting mad at the gas stations. If the government forces stations to charge a tax on each gallon of gasoline, then the store charges a little more so they can make pennies. If a credit cad company charges merchants every time you swipe your card, why should the merchant have to eat the additional cost? We are the ones buying the gas and using the service.

Comical to see so many wanting the government to “step in” because they have such a good track record at “helping”. They are the cause for most of the problems we face from day to day yet we (you not me) ask them to step in to save the day. Anyone paying attention can see the folly in this. They can’t spend less than they make, balance a budget, yet there are people out there that think they are competent enough to fix the problem. Get a clue; they ARE the problem.

My solution: Fill an envelope up with cash when I get paid and mark it as fuel money. When I need fuel I’ll use my envelope and pay the cash price. Problem solved and I didn’t even need the government to help me figure it out.

What a bunch of spoiled-rotten consumers we have become. “Oh my, my life just became less convenient…where’s the trustworthy government?” Pathetic!

By: David Malave

David Malave — Mon, 15 Aug 2011 13:22:55 +0000

I attempted to fill up at the pump at a LukOil on route 3 west in west Paterson… It was 4.15 pg for premium paying cash…. and 4.50 pg using my card!!! 35 cents difference?? I stopped the pump at 20 and I went on my way…totally absurd!!! Hopefully they pass a law!

By: leia

leia — Thu, 11 Aug 2011 05:15:43 +0000

not all Hess stations do that anymore… watch them. I hit one today that their billboard (or whatever you call it) price was $3.69, but the pump said $3.79. When I asked why the difference, I was told $3.69 was the cash price. Why don’t they put SOMEWHERE, on the pump, on the sign, whatever, that it’ll cost you more to use the credit card?

By: leia

leia — Thu, 11 Aug 2011 05:10:20 +0000

I agree with the ones saying that they should be able to charge more for credit cards, but that’s not a consumer’s point. It’s the practise of advertising the ‘discount’ rate and zinging you at the pump if you pay by credit card. It needs to be posted SOMEWHERE that you charge x cents per gallon for credit card use, and it never is! I drove away from a station tonight that posted a deceptively lower price than anyone else because their ‘discount’ was 10 cents! I have other stations I use quite frequently that charge the same as cash as for credit cards, or if they don’t, they post it! Why is it so darned hard to POST that you charge extra for credit card use? Most of the ones that do have a very visible sign that says ‘we give x cents discount for cash! Why can’t others do so as well?

By: Paul Vachon

Paul Vachon — Wed, 10 Aug 2011 13:48:30 +0000

The Valero I use even has a sticker on the gas pump that says “Please use credit card.” Nowhere does it say there is a fee. I don’t see how this would be legal.

By: jrgal331

jrgal331 — Tue, 09 Aug 2011 21:24:52 +0000

Okay… Visa, Mastercard, and Discover all say that the cash discount can not be more than the fee the merchant pays. The credit card fee is a few cents plus 1 to 2.5% of the total transactions. At $3.90 a gallon the cash discount should not be more than $.04 to $.05 per gallon. Any higher than that and you gas station owners are actually losing money. Learn to read your credit card stateemnts and learn to negotiate your credit card processing costs. You say the banks are taking all your profits, but the large cash discounts hurt you even more.

By: GMAC

GMAC — Thu, 28 Jul 2011 00:50:24 +0000

Vic,
No objection, but the price they advertise should be the credit card price, We shouldn’t have to find out at the pump that we suddenly are paying more because we are using a credit card. That is like a bait and switch in anyone’s book.

By: GMAC

GMAC — Tue, 26 Jul 2011 21:23:54 +0000

I hear a lot of station owners making excuses here. You should post your credit price out front as the advertised price, If the customer pays in cash, he will be pleasantly surprised by the supposed cash discount. The customer paying by credit card will also not feel ripped off by paying 10 cents/gallon more than the ad price. If a station doesn’t clearly post their price, I am all for pumping $1 gas and moving on.

By: Nj

Nj — Wed, 06 Jul 2011 08:33:26 +0000

visa and mastercard dnt care the price difference , because they charge a large fee from the retailer everytime these cards are used at the store.

By: Nj

Nj — Wed, 06 Jul 2011 08:29:19 +0000

Its not a good way to fight back but its a good way to get your credit card blocked though. Everytime some body swipes a card it cost the store about 10cents to 20 cents plus 1% to 2.5% of the amount of transaction as fee. So sometimes its just not worth it for stores to run a credit/debit card under certain amount.

By: Johny Jatt

Johny Jatt — Thu, 30 Jun 2011 00:11:57 +0000

THIS ISN’T FAIR WITH THE GAS STATION OWNERS WHO DON’T HAVE CONTROL OVER THEIR GAS PRICES, ITS ALL ABOUT THE COMPANY THAT HAS THE CONTROL OVER THE GAS, SOME STORE OWNERS LIKE US DONT MAKE PROFIT OVER THESE CREDIT OR CASH, WE HAVE TO DEPOSIT ALL THE CASH THE NEXT DAY TO THE COMPANY’S ACCOUT OR THEY FINE US LIKE 500 BUCKS. PEOPLE COME INTO MY GAS STATION AND TELL US ITS ILLEGAL AND TELL THEY ARE NEVER COMMING BACK, WE JUS SAY (OK), AND WHAT ELSE COULD WE DO, BUT THE CHESTNUT MART COMPANY FORCED THIS CREDIT PRICES TO BE 8 CENTS HIGHER AND PEOPLE FIGHT WITH US. IM AGAINST THIS CREDIT PRICE BUT THE COMPANY DOESN’T CARE ABOUT WHAT THE PEOPLE SAY.

By: fuelgirl

fuelgirl — Mon, 27 Jun 2011 18:15:15 +0000

Ok I’ve read so many of the comments that state the credit card price is higher because the charges are being added to the price. That’s is NOT the case. The cash price is a discount or a reward if you will. The company I work for has several different name brand stations. Our credit card price is the comparable price to the other stations in the area, but our cash price is usually the cheapest price around. Another thing that is not mentioned in the above comments if a stolen credit card is used directly at the pump the station has to pay out of pocket for those charges. With new credit card laws all of our computer systems had to be upgraded costing each of our stations around $15,000. Who do you think paid? Visa helped push the law through but didn’t put up any money to help with the conversion. Do research and get all your facts before talking out your rear end. Just because you are attached to a piece of plastic doesn’t mean that companies should pay for your attachment.

By: Nicole

Nicole — Wed, 22 Jun 2011 03:28:50 +0000

Except that fees are charged per transaction as well as a percentage of the sale.

By: Nicole

Nicole — Wed, 22 Jun 2011 03:24:07 +0000

I would be happy to make purchases inside the store with my gas purchases if only it didn’t require multiple trips into the store. Most gas stations in my area require that you leave the credit card at the counter then go pump your gas, return to the store and complete your purchase. If you would let me swipe my card for the authorization at the pump, then go into the store to complete my purchase, I would be happy to buy my soda and snack from you. This is the same reason I don’t use cash for gas purchases. I have to enter the store, leave my cash, then return for my change. I don’t trust the cashier to keep track of my cash or my credit card because they have too many other responsibilities. And let me be clear – this is most definitely not a judgement of the cashiers character, only the problems with requiring employees to multi-task.

By: rob

rob — Wed, 25 May 2011 18:46:54 +0000

Your station is not trying to be deceptive. I agree that the cash signage should be properly displayed. When you use your credit card, the gas station is charged 3% handling fee by MC or Visa. Higher for AMEX. When gas was 2.00/gallon, that was 6 cents. With gas now at 4.00/gallon, that is now 12 cents. What hasn’t changed is the gas station’s profit margin. Most stations don’t make more than 12 cents per gallon. If you use your card, they make nothing. Giving you 5 cents off still lets them make 7cents. Gas pricing is a penny business. Thats why they all have convenience stores. They make more on a half gallon of milk than filling your tank.

By: kofi

kofi — Mon, 23 May 2011 14:51:26 +0000

The extra cents should be charged on the transaction and not per gallon.

By: MIMI

MIMI — Sat, 21 May 2011 11:51:22 +0000

You clearly don’t understand how credit cards work.

It’s also obvious why you work at a gas station and aren’t performing brain surgery.

By: MIMI

MIMI — Sat, 21 May 2011 11:49:55 +0000

That’s exactly the same thing. Six of one, half dozen of the other. Why is it that this one cost of business is only passed on to certain consumers? Do you charge cash customers extra for the price of hiring the guy to work behind the counter? Because if I use a credit card, I don’t need a human inside, so why should I have to pay extra for that guy’s wages?

It’s just an excuse to charge more to certain customers so they can squeeze every single penny possible out of consumers.