Gas prices: Cash or Credit?

3/18/2011:

Since when did credit cost 20 cents more?

For the longest time – I remembered that prices for gas were essentially the same when paying by cash, credit or debit.

But shockingly – I noticed this situation at the Gulf Station on River Road just to the north of Hoboken the other day (in North Bergen).

Is this something new? A reason why they’re doing this? That’s a costly difference.. almost $5 bucks for my car!

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5 Comments on "Gas prices: Cash or Credit?"

JimmyB
Member
JimmyB

This has been going on for years. Mostly it’s been in the suburbs and along the interstates. Seems like every time the price spikes, the “non participating” dealers jump on the bandwagon in order to make a few extra bucks. Keeps the profit margins up?

homeworld
Member

They started this about a year ago at some gas station. I still usually save more by using my credit card since I get 5% cashback on gas.

HobokenSV
Member
HobokenSV

This can be a good thing, as those merchants that have only one price “pad” the price to cover the cost of the credit transaction fee. In theory the price of a gallon of gas at this station should be cheaper than the cost of a gallon at a station that does not offer the option.

prag
Member

This represents a 5% cash discount which is a little high but the practice of offering a cash discount at gas stations is not unusual. It’s a result of the thin margins selling gas and the ~2.4% in credit card processing fees that eat in to those margins. What they ARE doing right is clearly advertising it. Not all stations do and if you don’t bother to check you might unknowingly pay more if you choose to use your card. Just do the math and if the spread seems a little steep just pay with cash instead.

schwab
Member
schwab

Watching the economy implode in slow motion

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