Cash or Credit?

[GiG]

Where I live, gas stations have two prices: a “cash” price, and a higher price if you use a plastic credit or debit card.
Is this common across the country?
I like to use my bank card at the pump to save time. Not a credit or debit, it's the same as cash, but I don't want to pay an extra 10c / gallon for the convenience.
I would like to know if charging extra for gas to use plastic is a common practice nationwide so I can plan finances for some trips to various areas this summer.
Cheers.

[..]

South Carolina around Greenwood / Spartanburg does it.  

$3,09 and $3.19. Makes me wonder why gas here in north metro Atlanta is $3.37 ?????

Now I know. Taxes, taxes, taxes

http://www.api.org/Oil-and-Natural-Gas-Overview/Industry-Economics/~/media/21EBD0B62EBA42B1965EE82EFFB6585D.ashx

[Jess Tolbirt]

not the norm here,,,

[Ice]

I have notice the same trend around VA too, back in the old days it was common practice that cash and credit had two different prices, due to the station being charged extra for running CC's but time advanced and teh systems got better it changed and as you still see in many places today, it says Cash/Credit same price. I was wondering if with all the new modern technology we are taking a step back in time where it was better to carry cash.

[Jack]

The stations used to do it here but now it is illegal for anyone except the state and local government offices.

[Doc809]

During a recent purchase I was being a bit of a smart alek and asked a guy if he took cash and without blinking he told me he would take cash only if I had a drivers license and two credit cards to prove identity.  I am afraid he was serious, too.

[G-Man]

Used to be like that everywhere in the NYC area, then it went away, but now it's coming back. 

BTW, great app for the iphone called gasbuddy.  Tells you what the local stations are charging for gas.  Tells you how far the station is and even gives directions.   

[ChromeDome]

Don't recall if they ever did that here in Iliinois but I know that the price at the pump is the same cash or credit.

[Titan]

Pretty common in the Columbia, SC area to charge more when you use a credit card. Same gas pumps price same as cash if you use a debit card.

[sandy]

In AZ; Some stations charge a service charge for a credit card purchase. I've seen .45 Cents being charged per transaction.

[czuch]

Sandy is correct. Theres an Arco by the airport in Tucson that routinely has a very good price but use cash. They charge the .45. As much as I like .45, I dont wanna offset my gas thataway.

[Michael K (Az.)]

There's an arco here in Phx. that routinely charges the lowest prices on gas buddy but nail you the .45 cents if you use a card. On the bike, getting charged that amount for 4-5 gallons doesn't save you any $$.
Hey Sandy, How're ya doin??

[R J]

The basic reason they do this is the CC Company charges them so much to process the transaction.

I have run into 3 places here that give you a $.05 a gallon discount for cash.

1 of those places is a chain off of our Largest Grocery Stores in Iowa.  Also, if you bring in an old receipt from their grocery store you can get up to $.07 a gal off.    I think the receipt has to be $100 or bigger.   In degrees going up to the $.07, there a smaller discounts.   Like $.03, next step up is $.05, then the $.07.

Wife spends enough weekly for groceries we normally get the $.07 + the $.05 cash discount.       That helps lower the $65.00 tank fills pretty good.

Lately, I have been running E85 in my garbage can motor, (Flex-Fuel), and it is around $.85 a gallon cheaper.     I noticed about a 1/2 gal reduction in mileage.   For the $.85 I take the 1/2 gal less mileage.    I been going to figure out what my break point mileage would be, but never got round to it yet.  

Don't tell no one, but my engine is peppier w/E85.

I have a neighbor who has a Ram 1500 w/ Hemi in it.

With regular gas in mine, he was beating me by at least a car length and a 1/2.
W E85, he is only beating me by a 1/2 a car length in our little private drag strip.

County screwed up about 10 years ago and paved this little road, it goes no where. Come to find out, the pavement people were just a mile off on their measurements.  So, we got this nice place to drag.   I've got a lot of tire rubber on the start line.   Rough sharp edged concrete will tear rubber off of a tire real easy.

Going to Colorado in about 3 weeks, will see how much it really effects gas mileage with the E85.   After the trip, then I'll see what the difference is in cost.

[9Ball]

not normally done around here, but there are some gas stations in South Jersey that have this practice....I just avoid them and buy elsewhere.

[Daniel Meyer]

Usually not done here...used to be a lot. Still see some truck stops that do that.

As a merchant, it's against my processor's agreement to charge folks more/fee for using the card. Perhaps that's negotiable for fuel sellers, but in my case, could cause be to be banned from taking cards at all.

[jer0177]

As a merchant, it's against my processor's agreement to charge folks more/fee for using the card. Perhaps that's negotiable for fuel sellers, but in my case, could cause be to be banned from taking cards at all.

^^ This.

Here's what the originators have to say about passing credit card processing fees to customers.

VISA states that "you may not impose any surcharges on VISA transactions. You may, however, offer a discount for cash or another form of payment (e.g., proprietary card or gift certificate) provided that the offer is clearly disclosed to customers and the cash price is presented as a discount from the standard price charged for all other forms of payment"1

MasterCard states that "A Merchant must not directly or indirectly require any Cardholder to pay a surcharge or any part of any Merchant discount or any contemporaneous finance charge in connection with a Transaction. A Merchant may provide a discount to its customers for cash payments."2

Discover states that "You may assess a surcharge on a Card Sale conducted using a Credit Card provided that (i) the amount of the surcharge may not exceed the Merchant Fee payable by you to us for the Card Sale, and (ii) you assess surcharges on card sales conducted using other credit cards accepted by you."3

American Express states that "You must not accept the Card for costs or fees over the normal price of your goods or services (plus applicable taxes) or Charges that Cardmembers have not specifically approved."4

Every originator except for Discover forbids surcharging credit card sales, however, as MasterCard so clearly states, "A Merchant may provide a discount to its customers for cash payments." This statement holds the secret to passing credit card processing fees on to customers. The trick isn't charging customers more for using a credit card; it's charging them less for using cash.

In order to charge customers for credit card processing fees you must create a dual pricing model. To accomplish this, raise all prices to offset processing fees and then offer a discount on cash purchases that's equal to the price increase.

The catch is that the cash price must be presented as a discount to the true price. This means that price tags, signage and advertisements must display the higher (credit card) price first and then display the lower (cash discount) price as a discount. For example, many gas stations offer a cash discount but they post the higher (credit card) price on their roadside signage.

Passing credit card processing fees to customers may seem like a great business idea at first but it's possible that it could hurt business. Consider this; if customers fail to look past the higher (credit card) price to notice the lower (cash discount) price they may assume that your business has higher prices than your competitors.

(borrowed from http://www.merchantcouncil.org/merchant-account/operation/pass-fee-customer.php)

[keepinon]

Locally, the Chevron/Texaco stations are giving .05 off per gallon for cash transactions. Being the lazy guy I am, I go inside once a week and get a "gift card". No charge for the card, and you can "load" it with as much cash as you want. (I typically put $150 on it) The card then acts as a credit card at the pump. When inserted, the display shows the balance remaining, changes the price to the cash price, and when done fueling, the receipt shows your ending balance. Beats walking back & forth for $ deposit & change. Or you can use the card in the store for purchases.

The only drawback, the card is only good at Chevron/Texaco stations, but they are here in abundance.

[Red Diamond]

I've not seen much of that in our area, but as Daniel said, it seems to be mostly at truck stops that I've noticed it while traveling. It has been said that on the Texas Gulf Coast, 31% of the oil in the world is refined. We still pay pretty good for gas.

[jer0177]

There's a 7-11 on the University of Pittsburgh campus that started charging a $.35 surcharge for credit card users (I always paid cash there - my bank has an ATM right inside the store), but it didn't stay worded like that for very long.  They still charge the fee, but the sign says something to the effect of "it's not a fee for credit, it's a discount for cash, but not applied unless you pay by credit card", so they're still in violation of the terms of the credit card companies. 

[Stanley Steamer]

There are several stations here in town that charge more for CC transactions.....

[fudgie]

Most truck stops do. 

[BF]

Not common here....same price for cash, credit, debit.  All stations around here now are "pre-pay" stations.  They don't won't you to pay in cash and make it inconvient to do so. 

They claim they went to all pre-pay because of drive offs and tourists.  I think it's an excuss to try and force you to use a card because it's a guarenteed transaction for them plus they borrow a dollar for 24 hours if you use your debit card.....it's a "temporary" fee to run your debit card as a credit.  All of the Citco stations here do that.  More gouging IMHO. 

[cookiedough]

Not many in WI that I know of give a discount on cash transactions except my local independent corner gas station owned privately by 1 older guy in my home town.  He gives between 3-4 cents discount cash price vs. anyone else around charging the same higher 3-4 cents credit price.  I know why he does it is because the merchant fees  for credit card uses he has to pay  every month are roughly 3-4% on the dollar.  I use to have to pay merchant fees in accounts payable where I worked to American Express and it is just a way for the credit card companies to make money is all.
If I have the cash, I support his business to keep him going otherwise I just pay with credit card since I earn 1% cash back on every dollar charged on my mastercard which about every 3 months for me adds up to 50 bucks in my pocket as cash.  It use to be 5% cash back credit card and then 3% and now down to 1% but still better than nothing.  At 5% cash back, I was getting a check about once per month or so for 50 bucks, couldnt' beat that for the credit card companies to pay ME for a change.

[Dave Ritsema]

Pretty common here in Northern Indiana. I would guess that about 25% of the stations here give you a nickel off for cash.

[scoot]

One other reason for the cash discount is to get you back in their store. By using your credit card at the pump, you pull up to the pump, get out of your car, pump your gas, and leave. All of that coffee, and other merchandise just sits on his shelves. That is the stuff he makes his money on. As hard as it is to believe he isn't making that much on the gas.
Next time your standing in line to pay for your gas look around at what the other patrons are buying. Coffee, cigarettes, and snacks, ect.

[bogator]

wal-mart--credit card--10 cents off--not gift cards--at Murphy gas---here, 

[BIG--T]

Here credit cards has always been more and I can understand it because they charge the merchant a percentage. But there are those stations that offer a discount for cash and the majority accepts debit cards. There is a high volume station close to me that started this cash discount and did not apply to debit cards and had to go in and pay cash and most of the time I fill mine up so not knowing what it costs is a pain. I just stopped going and started noticing their business almost stopped and when the cars came back I checked it out. Yep, back to normal now and get the cash price using my debit card. 

[Former BMW Guy]

Illegal here in Minnesota...Wisconsin too I think.

JP

[sugerbear]

pretty common here in wentzville. 5 cents off for cash.

trying to setup a 4 day weekend in the ozarks. lotsa resorts charge 3.5% extra for credit card use.

that's ok i'm a cash kinda guy anyway.