A recent Nielsen study revealed that almost two-thirds of consumers in the United States, many more than those surveyed just one year ago, have cut back their expenses, specifically due to escalating gas prices.

According to the study, which queried about 50,000 consumers during the first week of June, when regular gas averaged $3.98 per gallon, 78% of consumers are combining shopping trips, 52% are eating out less and 51% are staying at home more. Consumers are also clipping more coupons, doing more shopping at supercenters and buying less expensive brands, the survey found.

Over the past eight years, eerily coinciding with the time that those in the White House were individuals with very strong ties to oil companies and the energy industry, I’ve seen prices at the pump climb 300%. But unlike the majority surveyed, I can’t say that I’ve changed my spending pattern due to this incredible increase in price. I have changed a few habits to save money, like switching to generic brands for certain items, but I find I am spending significantly more in just about every category compared to my expenses in 2000.

I’ve never been much a coupon clipper. If a coupon happens to find its way to my line of sight, and it’s something I might need in the foreseeable future, I will clip it to my refrigerator door and I may remember to bring it with me on my next shopping trip. This hasn’t been changed by gas prices. I am not traveling less, either.

Have you changed any of your habits due to the increase in gas prices?

Gas prices have consumers cutting back – study, Associated Press, July 17, 2008.

Every week, cash back credit card deals are decreasing. American Express recently emailed me to let me know that they have lowered the cash back rate on their SimplyCash Business Card from 5% to 3% on gas station purchases. If this is your card, it might be time to seek out another deal.

Here are a few suggestions designed to maximize your cash back based on your spending habits.

Blue Cash from American Express.

If you use credit cards for most of your spending, you might like this card. While the first yearly $6,500 of your spending is subject to only 1% cash back on “everyday” purchases (including purchases at gas stations, supermarkets, and drug stores) and 0.5% cash back on everything else, once you pass that threshold, you will earn 5% cash back on your “everyday” purchases and 1.5% cash back on everything else.

Discover Open Road Card.

If you’re not a heavy spender on your credit cards but you’re still looking for the best deal, the Discover Open Road Card may be a good choice. You will earn 5% cash back of the first $100 you spend each month on gas and auto maintenance. In other categories, you will earn 0.25% or 0.50% cash back. Spend more than $3,000 over the entire year and you’ll earn 1% cash back on your spending in excess of this minimum.

TrueEarnings Card from Costco and American Express.

Even if you don’t shop at Costco, this card provides a good cash back bonus. You can earn 3% back on gas, as long as you don’t buy 75 gallons or more in one transaction. There’s no yearly limit to this cash back, however. The catch here, as you might have guessed, is that you must be a member of Costco in order to qualify for this card.

Note: This is a “business” card, but you can apply as an individual.

Chase BP Visa Rewards Card.

If you’re loyal to these brands of gasoline, this card provides a strong 5% cash back rebate for your purchases at BP or Amoco stations. You’ll also receive a 2% cash back rebate in other categories and 1% cash back on everything else (except gasoline sold at gas stations branded with anything other than BP or Amoco). BP has low prices on the path of my commute, but usually not the lowest. The question is whether the larger cash back amount will offset the slightly higher price.

As with any rewards-offering credit cards, taking advantage of cash back depends on your ability not to carry a balance, accrue interest, or pay late fees. Any method of using a rewards credit card other than paying the balance in full every month will negate any benefit offered by the issuer.

Here is the third part of the list of gas stations in New Jersey that are ripping off customers. For more information, see this first part and the second part.

The first part also contains a map of every gas station fined for violation of a variety of regulations.

This list begins with Morris County. Read the rest of this article »

Here is the second part of the list of gas stations in New Jersey that are ripping off customers. For more information, see this first part. The first part also contains a map of every gas station fined for violation of a variety of regulations.

This list begins with Essex County. Read the rest of this article »

If you buy gasoline in New Jersey, you may want to avoid the gas stations listed in this article. The New Jersey Division of Consumer Affairs has fined 350 stations out of 1,025 total inspected during a recent three-day operation across the entire state. Most of the stations fined were guilty of innacurate pump calibration, providing customers with less gasoline (fewer gallons) than appear on the pump’s display.

Other violations include inaccurate octane ratings, missing registration, prices posted incorrectly and multiple price changes in a 24-hour period.

Here is a map of the stations cited and fined, and you can find out the violations for which each station on the map is guilty by zooming in and clicking on the marker. For a list of all stations in violation, read this full post.

If you believe you see a violation in New Jersey, call the Division of Consumer Affairs at (732) 815-4840.

Continue reading for the full list of gas stations in violation, grouped by county. Read the rest of this article »

Last June, I noticed that a few gas stations in my area were charging different prices for gas depending on whether your method of payment was cash or credit. My biggest problem was that this wasn’t advertised on the large signs attracting drivers to the station. The station later changed its signs, though the cash price appears in the spot where one would normally see the “regular unleaded” price, and the credit price appears where one would expect the “plus unleaded” price. The labels “cash” and “credit” are only legible up close.

This “cash discount” is a joke. The cash price is the competitive price relative to other local stations and the credit price has increased more significantly. This is just a sneaky way of getting around Visa’s and MasterCard’s requirements for merchants not to charge more for customers who use credit cards. I am aware the credit card companies charge transaction fees that can cripple gas station owners who make very thin profits on gasoline, but this is not the answer, particularly if they must run misleading advertising to compete with other stations.

The price discrimination first occurred shortly before I moved to a new town, so I didn’t have to deal with it at that time. Once I moved, I found a local, low-price gas station on my daily route that did not offer a “cash discount.”

Last night, I pulled into my low-cost station on the way home from the office, just like I have been doing several times a week for the past 11 months. As pumping our own gasoline is against the law in New Jersey, I asked the attended to fill up the tank. It wasn’t until the tank was almost full that I glanced at the sign on top of the pump to see how high the prices increased over the weekend. I noticed there were two sets of prices, one for cash and one for credit.

Curses, foiled again. Some time in the past few days the owners of this Raceway gas station decided to offer a “cash discount” as well, just like the Valero station near my old apartment. The large sign attracting drivers to the station had been changed to list cash price first, followed by credit price in the “plus unleaded” location, with small labels reading “cash” and “credit.”

The price difference between cash and credit was ten cents. I’m considering opening up a CitiBank Driver’s Edge credit card, like this one for students, currently offering a 6% cash back rebate on gasoline purchases. That rebate would make up the ten cent difference and more, but I’d rather not open more credit cards.

I’d also rather not carry around cash for fueling my car, considering it cost almost $40 to fill up last night. I would save $2.00 to $3.00 a week by paying with cash. All other gas stations are either more expensive or out of the way. Perhaps I’ll try cash for a while, but I’ll have to get used to withdrawing about $100 more than I usually do each week. If I adapt, I’ll have perhaps an extra $150 saved after one year.

A recent article on CNN Money described the woes of independent gas station owners. The increasing cost of a gallon of gasoline results in less profit thanks to the processing fees credit card companies charge the merchants. I can appreciate that doing business in this type of environment is tough.

With gas prices soaring to a national average of $3.76 Wednesday, according to motorist group AAA, those credit card fees add up to an average of 7.5 cents per gallon – taking away nearly 83% of gas stations’ fuel profits.

Most gas stations earn their bigger profits on items purchased in the attached convenience store and mechanic services. Gasoline is a loss leader. Everyone needs it, and many gas stations are willing to take even a slight loss on gas as long as they continue to make profits elsewhere.

The credit card companies don’t accept the blame. For example, Visa says the processing fee they charge their gas stations is set by the large oil companies.

The Electronic Payment Coalition (EPC), a group representing credit card networks and financial services organizations, said it’s impractical for card companies to negotiate with every single gas retailer. So, it said, gas station owners should put pressure on their parent oil companies to negotiate a better fee.

To compete, some gas stations are charging customers who use a credit card more than a customers who use cash. Apparently, they’ve found a way to avoid breaking the credit card companies’ rules by calling this a “cash discount” rather than a “credit premium.”

I don’t know what the real difference is, and the only effect it’s had on me is switching to another gas station. The main problem is when gas stations advertise their cash price without disclosing (until the nozzle is in your car) that you will be paying more if you use a credit card.

To help solve some of these problems, both for the consumer and the independent gas station owner, Congress is suggesting fixing the maximum rate that credit card companies can charge merchants to accept their cards through a bipartisan bill in the House, called the Credit Card Fair Fee Act. Congress will set up a committee who will define what rates the credit card companies can charge merchants.

Will this solve the problem or is it unnecessary meddling in a free(ish) market economy?