Comments on: Pay Cash For Gas & Get Discount http://www.savingadvice.com/blog/2006/05/27/10649_pay-cash-for-gas-get-discount.html Bridging the gap between saving money and investing Sat, 11 Oct 2008 10:56:47 +0000 http://wordpress.org/?v=2.6.1 By: Savon http://www.savingadvice.com/blog/2006/05/27/10649_pay-cash-for-gas-get-discount.html#comment-3833 Savon Mon, 29 May 2006 17:51:28 +0000 http://www.pfadvice.com/?p=649#comment-3833 Just a side note - the contract that vendors make with Visa and MasterCard prohibits them from charging a surcharge for credit card purchases. Although the vendors would like to make up for the percentage fee they pay on credit card transactions, the credit card companies don't want people to be discouraged from using credit cards, and the vendors generally find that offering credit card payment attracts more business, so it is an acceptable tradeoff. However, the gas stations skirt this provision by offering a "cash discount" instead of a credit card surcharge. A bit shady, perhaps. Another thing you should know is that the contract vendors make with Visa and MasterCard forbids the vendors from setting a minimum purchase amount for use of a credit card. I'm sure you have seen businesses that do this, however. If you want to use your credit card with them, you might kindly remind them that their credit card agreement forbids a minimum. American Express does not prohibit a minimum purchase charge, unless Visa or MasterCard are offered (almost always), in which case, for competitive purposes, they forbid a minimum charge as well. Just a side note - the contract that vendors make with Visa and MasterCard prohibits them from charging a surcharge for credit card purchases. Although the vendors would like to make up for the percentage fee they pay on credit card transactions, the credit card companies don’t want people to be discouraged from using credit cards, and the vendors generally find that offering credit card payment attracts more business, so it is an acceptable tradeoff.

However, the gas stations skirt this provision by offering a “cash discount” instead of a credit card surcharge. A bit shady, perhaps.

Another thing you should know is that the contract vendors make with Visa and MasterCard forbids the vendors from setting a minimum purchase amount for use of a credit card. I’m sure you have seen businesses that do this, however. If you want to use your credit card with them, you might kindly remind them that their credit card agreement forbids a minimum.

American Express does not prohibit a minimum purchase charge, unless Visa or MasterCard are offered (almost always), in which case, for competitive purposes, they forbid a minimum charge as well.

]]>