Halcyon Posted January 19, 2013 Share Posted January 19, 2013 Okay, so how come gas stations get to charge less if you pay cash, and more if you pay by credit card? Imagine if the grocery store did that? Quote Link to comment Share on other sites More sharing options...
********* Posted January 19, 2013 Share Posted January 19, 2013 Shhhh. Don't give 'em any ideas. :p I dunno why they can do that. Good question. Quote Link to comment Share on other sites More sharing options...
Mergath Posted January 19, 2013 Share Posted January 19, 2013 They don't do that here. :confused1: Sounds really dumb. Quote Link to comment Share on other sites More sharing options...
Halcyon Posted January 19, 2013 Author Share Posted January 19, 2013 Shhhh. Don't give 'em any ideas. :p I dunno why they can do that. Good question. LOL. It;s just, I use Gas Buddy on my Android, and found a place that offered gas for whatever price, and when I got there, I realized it was 5 cents more per gallon if you use your card. So it got me thinking! It doesn't seem right! Quote Link to comment Share on other sites More sharing options...
Halcyon Posted January 19, 2013 Author Share Posted January 19, 2013 They don't do that here. :confused1: Sounds really dumb. really? where are you? they;ve done this in every state i've ever visited. It IS dumb. Quote Link to comment Share on other sites More sharing options...
mamajag Posted January 19, 2013 Share Posted January 19, 2013 Because they pay a percentage of every credit or debit transaction to the credit card company for the privilege of taking their card. It's pretty common here. Quote Link to comment Share on other sites More sharing options...
melissad2 Posted January 19, 2013 Share Posted January 19, 2013 They do it because the credit card companies charge them a processing fee. Most places just eat the fee so you will do business there, but apparently gas stations have decided that we have no choice. Gotta have gas right? Quote Link to comment Share on other sites More sharing options...
Mergath Posted January 19, 2013 Share Posted January 19, 2013 I live in Minnesota. The price is the same no matter how you pay. That's crazy- I've never heard of that. I asked dh, and he says it's crazy too, and he's also never heard of it. I guess you'll all have to move here and keep me company. :D Quote Link to comment Share on other sites More sharing options...
Halcyon Posted January 19, 2013 Author Share Posted January 19, 2013 Because they pay a percentage of every credit or debit transaction to the credit card company for the privilege of taking their card. It's pretty common here. yes, i know that, but so does every business that uses credit cards. and they are not allowed to charge more if you use their card, in fact, it's illegal. I run a business and was specifically told that i am NOT allowed to charge more for people who use their card, even though I pay a fee. Quote Link to comment Share on other sites More sharing options...
athena1277 Posted January 19, 2013 Share Posted January 19, 2013 They do it here. Since our bank reimbursed ATM fees, dh will go inside the gas station and use the ATM to get cash to pay for gas. Takes more time, but saves $$. Quote Link to comment Share on other sites More sharing options...
gardenmom5 Posted January 19, 2013 Share Posted January 19, 2013 Okay, so how come gas stations get to charge less if you pay cash, and more if you pay by credit card? Imagine if the grocery store did that? the grocery store CAN do that - any merchant can do that. merchants pay a fee to use credit card services, so the merchants who give a cash discount are passing on the cost of the credit card company fee so you are paying for the convienence, not the merchant. that's why so many merchants have their own credit cards - they don't have to pay themselves a fee to use the card. I've been in a number of mom & pops that require a minimum charge to use a card. mom and pops, other privately owned merchants who deal with very close margins are more likely to do that as pennies add up. Quote Link to comment Share on other sites More sharing options...
Laurel Posted January 19, 2013 Share Posted January 19, 2013 yes, i know that, but so does every business that uses credit cards. and they are not allowed to charge more if you use their card, in fact, it's illegal. I run a business and was specifically told that i am NOT allowed to charge more for people who use their card, even though I pay a fee. Yes. I think the gas stations get around this by offering a "discount" for paying in cash, so they are not technically charging more for using a credit card. Quote Link to comment Share on other sites More sharing options...
MomtoCandJ Posted January 19, 2013 Share Posted January 19, 2013 I've seen gas station signs along I75 saying cash is x.xx credit being five to ten cents more. Quote Link to comment Share on other sites More sharing options...
MomtoCandJ Posted January 19, 2013 Share Posted January 19, 2013 I've seen gas station signs along I75 saying cash is x.xx credit being five to ten cents more. Quote Link to comment Share on other sites More sharing options...
regentrude Posted January 19, 2013 Share Posted January 19, 2013 Why do so many people find this dumb? From a business standpoint, it makes perfect sense - accepting credit cards incurs a 2% fee for the business. Not charging different means that the cash payers subsidize the credit card payers because the prices must be high enough to pay the fees. Halcyon, I am curious about you not being *allowed* to charge more. Would you be allowed to give a discount for people who pay cash? Quote Link to comment Share on other sites More sharing options...
Annie G Posted January 19, 2013 Share Posted January 19, 2013 Around here, most stations don't have a different price based on your payment method. But those that do tout it as a discount for cash rather than a fee for using a credit card. When we were landlords, we kind of did the same thing. Instead of saying that paying late meant a late fee, we gave a discount for paying before the 5th. Quote Link to comment Share on other sites More sharing options...
jewellsmommy Posted January 19, 2013 Share Posted January 19, 2013 I have never seen this. I have seen the opposite. If we use our walmart card, we save money on every gallon of gas. But, it doesn't have to be a walmart credit card. You can use a wm gift card and get the discount. Quote Link to comment Share on other sites More sharing options...
MomatHWTK Posted January 19, 2013 Share Posted January 19, 2013 Previously, the credit card companies' use agreements required merchants to agree not to charge extra fees, require minimum purchases, etc. But retailers sued and won so now any retailer can set restrictions on the use of credit cards. Most have opted not to do so as they would be at a disadvantage to their competitors if they are the first to adopt the policy. Quote Link to comment Share on other sites More sharing options...
Arcadia Posted January 19, 2013 Share Posted January 19, 2013 yes, i know that, but so does every business that uses credit cards. and they are not allowed to charge more if you use their card, in fact, it's illegal. I run a business and was specifically told that i am NOT allowed to charge more for people who use their card, even though I pay a fee. Business are not allowed to charge more if customers use a credit card to pay. However there is nothing to stop a business giving a discount to cash paying customers. That is how the gas stations get around the law. Quote Link to comment Share on other sites More sharing options...
mamajag Posted January 19, 2013 Share Posted January 19, 2013 yes, i know that, but so does every business that uses credit cards. and they are not allowed to charge more if you use their card, in fact, it's illegal. I run a business and was specifically told that i am NOT allowed to charge more for people who use their card, even though I pay a fee. In general it is written off as a discount for cash customers, not as a surcharge for credit. Generally, retailers like Walmart want you to spend as much as possible so they don't bother. If they can get you to spend too much on a credit card, they'll pay the fee every day of the week. Since all the financial reform laws went through I have seen a lot of the cash discounts and minimum purchases for credit cards. I don't tend to purchase at those places as they are not generally the lowest price in town. Quote Link to comment Share on other sites More sharing options...
mamajag Posted January 19, 2013 Share Posted January 19, 2013 yes, i know that, but so does every business that uses credit cards. and they are not allowed to charge more if you use their card, in fact, it's illegal. I run a business and was specifically told that i am NOT allowed to charge more for people who use their card, even though I pay a fee. In general it is written off as a discount for cash customers, not as a surcharge for credit. Generally, retailers like Walmart want you to spend as much as possible so they don't bother. If they can get you to spend too much on a credit card, they'll pay the fee every day of the week. Since all the financial reform laws went through I have seen a lot of the cash discounts and minimum purchases for credit cards. I don't tend to purchase at those places as they are not generally the lowest price in town. Quote Link to comment Share on other sites More sharing options...
QueenCat Posted January 19, 2013 Share Posted January 19, 2013 yes, i know that, but so does every business that uses credit cards. and they are not allowed to charge more if you use their card, in fact, it's illegal. I run a business and was specifically told that i am NOT allowed to charge more for people who use their card, even though I pay a fee. That's why they call it a discount for the cash payers rather than a surcharge for the credit card users! Quote Link to comment Share on other sites More sharing options...
gardenmom5 Posted January 20, 2013 Share Posted January 20, 2013 I've had dr's offices offer "cash" discounts. then you get to fight with the insurance companies. Quote Link to comment Share on other sites More sharing options...
MomatHWTK Posted January 20, 2013 Share Posted January 20, 2013 http://www.foxbusine...-card-use-will/ http://www.nytimes.com/2012/07/14/business/mastercard-and-visa-settle-antitrust-suit.html?_r=0 Quote Link to comment Share on other sites More sharing options...
dsmith Posted January 20, 2013 Share Posted January 20, 2013 It's a common practice here in NJ. We had a friend who owned a gas station. He barely made any money on gas. Our mechanic got rid of his pumps because they didn't make him any money. The smaller gas stations around here all have a car repair business on site. Otherwise they wouldn't be able to stay in business. Quote Link to comment Share on other sites More sharing options...
skimomma Posted January 20, 2013 Share Posted January 20, 2013 People like the convenience of credit cards but do not realize at what cost. One of our local natural food stores spent more on cc fees last year than they made in profit. By a factor of three! It is a really hard choice for small businesses. Either lose potential business because you don't take ccs or pay huge amounts for the privilege. I wish more consumers knew this. Once I was in the know, I make an effort to use checks or cash at all small businesses. Quote Link to comment Share on other sites More sharing options...
Outdoorsy Type Posted January 20, 2013 Share Posted January 20, 2013 I believe it's because most gas stations don't make much (if any) profit on gas. It's the merchandise from inside the station that gets marked up. They would lose profit if everyone payed credit and then they had to pay the 2% fee. they depend on sone cash payment and lots of merchandise sold. Hence the grocery stores don't have the same practice, since all their product is marked up. Quote Link to comment Share on other sites More sharing options...
Parrothead Posted January 20, 2013 Share Posted January 20, 2013 Yes, it is because they have to pay the cc company per transaction. Now what is really interesting are the little owns scattered all over that charge the locals less for gas than the out of towners. The out of town people have no idea, and the townsfolk won't say a word. Quote Link to comment Share on other sites More sharing options...
ThisIsTheDay Posted January 20, 2013 Share Posted January 20, 2013 yes, i know that, but so does every business that uses credit cards. and they are not allowed to charge more if you use their card, in fact, it's illegal. I run a business and was specifically told that i am NOT allowed to charge more for people who use their card, even though I pay a fee. Technically, I believe a business cannot charge more, but it can give a discount for paying cash. However, this might vary per state, and state law may also be the reason that Mergath has not heard of this where she lives. Quote Link to comment Share on other sites More sharing options...
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