Gas prices: Cash or Credit?


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!

Gulf Gas Station in North Bergen NJ charges 20 cents more for credit than cash

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JimmyBhomeworldHobokenSVpragschwab Recent comment authors
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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?


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.


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.


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.


Watching the economy implode in slow motion