Gas station now charging more for credit card use

[disneysteve]

The gas station near our house that we've used most often since we moved here in 1994 just put up a new price board. They are now charging 2 cents/gallon more if you pay by credit card. I'm hoping that old practice isn't going to become widespread. At least for now, we will no longer be buying our gas at that station as a protest of that new pricing. I realize that they have to pay to process cards, but I just don't find it acceptable to charge the customer extra for using a credit card. CCs are far too common today to do that. I do plan to either stop over there one day or write them a letter to let them know that we have been customers for over 13 years but will no longer be coming back due to the pricing change. Maybe if enough people complain, or they see their business dropping off, they'll reconsider.

Of course, the fact that the station directly across the street charges 20 cents/gallon more doesn't make that very likely.

[Hedy]

The gas station near our house that we've used most often since we moved here in 1994 just put up a new price board. They are now charging 2 cents/gallon more if you pay by credit card. I'm hoping that old practice isn't going to become widespread. At least for now, we will no longer be buying our gas at that station as a protest of that new pricing. I realize that they have to pay to process cards, but I just don't find it acceptable to charge the customer extra for using a credit card. CCs are far too common today to do that. I do plan to either stop over there one day or write them a letter to let them know that we have been customers for over 13 years but will no longer be coming back due to the pricing change. Maybe if enough people complain, or they see their business dropping off, they'll reconsider.

Of course, the fact that the station directly across the street charges 20 cents/gallon more doesn't make that very likely.

That stinks. Would you consider reporting them to Visa or Mastercard as that's in violation of their contract with them?

[Pupart]

I thought the CC co's had an agreement with the merchants who accpted their CC's that they could not charge less to thier cash customers.
I have read a lot about this on the TPM Cafe site.
I think it is fair that cash customers should pay less.
Not everyone can get a credit card, amd not everyone should have a credit card. There are still plently of people who are working at min wage and the only credit cards available for them are cards which have a yearly fee. They would be better off putting that yearly fee into a savings account in my opinion.
Dave Ramsey followers are not using credit cards if they are following his program to a T.
Why should anyone have to pay more because of the merchants fee?
I am on the side of business who will give a break to those who are paying cash.

The gas station near our house that we've used most often since we moved here in 1994 just put up a new price board. They are now charging 2 cents/gallon more if you pay by credit card. I'm hoping that old practice isn't going to become widespread. At least for now, we will no longer be buying our gas at that station as a protest of that new pricing. I realize that they have to pay to process cards, but I just don't find it acceptable to charge the customer extra for using a credit card. CCs are far too common today to do that. I do plan to either stop over there one day or write them a letter to let them know that we have been customers for over 13 years but will no longer be coming back due to the pricing change. Maybe if enough people complain, or they see their business dropping off, they'll reconsider.

Of course, the fact that the station directly across the street charges 20 cents/gallon more doesn't make that very likely.

[simpleyme]

as a cash paying customer i love this policy I have been overpaying for years do to credit card users ;-)


but I do get why this would upset the credit card users

[Joan.of.the.Arch]

Uht-oh, I hope that practice doesn't spread. What company are they? Paying at the pump is one of my favorite credit card uses. Makes gas buying no hassle. If they'd had this service when my child was little, I would always have gone to the station with pay-at-pump....unless, maybe, I had to pay extra! So much trouble to unbuckle and take the little one inside to pay, then re-buckle in the car seat after paying.

If they are a busy gas station, I think it could hurt their business if lots of people now go inside to pay cash. The number of people paying at the pump really speeds things up. The extra time required to go to the register with cash makes the cars sit at the pump while people needing gasoline will see the lines and drive on by to the next gas station. Total gas sales go down.

[disneysteve]

If they are a busy gas station, I think it could hurt their business if lots of people now go inside to pay cash.

Unfortunately, I'm in NJ where we aren't allowed to pump our own gas, so no matter how we are paying, we have to wait for the attendant to come over and either take our cash and give us change or run our credit card.

[disneysteve]

as a cash paying customer i love this policy I have been overpaying for years do to credit card users

Gas stations are the only business I know of that have this practice. The supermarket or drug store or department store doesn't charge different prices. Why should the gas stations?

[simpleyme]

I think all stores should be able to charge or not charge extra ,not have the credit cards dictate policy

kinda would seem American if business got to set their own prices wouldn't it

[Pupart]

Adam J. Levitin

The link above is interesting .

[ktmarvels]

I've know a couple of gas stations to do this in Oregon. Some of the Arco's charge a flat $.75 (or around there) to use a debt card, and they don't accept credit cards at all. I believe 76 stations have a policy similar to the one that you described where the gas is about 2 cents more per gallon if you pay with your card.

[humandraydel]

For the sake of semantics, note that this is really a "cash discount", not a "credit surcharge". While you cannot charge more for using a credit card, you can give a discount for using cash. The only reason I mention this is because a "cash discount" has been common for many things for many years.

It's true that the CC fees are just passed on to consumers, so I'm not opposed to a cash discount. In most cases the cash discount is probably greater than the "rewards" you get from a credit card.

[disneysteve]

For the sake of semantics, note that this is really a "cash discount", not a "credit surcharge".

I realize that. This is how they get away with it. A "credit surcharge" would violate their agreement with Visa/MC/Discover but a "cash discount" doesn't. Really stupid considering they are exactly the same thing no matter what you call them.

[disneysteve]

In most cases the cash discount is probably greater than the "rewards" you get from a credit card.

In this particular case, it still pays us to use credit, but I still won't go there. The 2 cent surcharge amounts to about 0.75%. If I use my Discover card, I get 5% cash back. But I can drive up the road to another station that charges the same price cash or credit as this station is charging for cash only and still get my 5% cashback.

[Diolla]

I had always paid cash for my gas until every station in town went to pre-pay. I don't have patience enough to go wait in line, pay, pump then go wait in line again (if I paid too much) for my change.

It is the only regular expense I pay with plastic just because of this.

OT-I remember when pay at the pump/credit card payments first became possible and alot of stations gave a discount for cash.

[Kate Ann]

Learned to carry cash for gas

After a series of debit card problems (identity theft etc), I've learned it's just better to pay for gas at Arco with cash, and avoid the extra fees from the get go. It was difficult at first, because I never used to carry cash with me at all, but now, I just budget for a cash withdrawal from my paycheck and pay for gas in cash. Besides, Arco where I live doesn't allow for cc payment, only debit card, and if I wanted to go to a different station and use my cc I'd have to pay at least 20 cents more for gas than shopping at Arco...so it's motivated me to save the cash and go where it's cheaper.