• We’re currently investigating an issue related to the forum theme and styling that is impacting page layout and visual formatting. The problem has been identified, and we are actively working on a resolution. There is no impact to user data or functionality, this is strictly a front-end display issue. We’ll post an update once the fix has been deployed. Thanks for your patience while we get this sorted.

Gas Station semi-rant

SandEagle

SandEagle

Lifer
here in Detroit there are gas stations that charge different prices for regular gas, depending on if you use cash or credit. I've seen this before and thought a 6-8cents difference was nothing to complain about. Now I'm seeing a lot more of these places charges up to 20 cents more per gallon if you use credit. wtf. is that not gouging?

i just dont bother giving them business anymore, but still it irks me to see that this is allowed.
 
It's to cover processing fee for credit card companies. They aren't making a profit on that price difference.
 
Originally posted by: Crono
It's to cover processing fee for credit card companies. They aren't making a profit on that price difference.
Click to expand...


really? i haven't seen it in any of the surrounding suburbs or in any of the tri-state area. i'd think it'd be national if this was the case?
 
Originally posted by: SandEagle
Originally posted by: Crono
It's to cover processing fee for credit card companies. They aren't making a profit on that price difference.
Click to expand...


really? i haven't seen it in any of the surrounding suburbs or in any of the tri-state area. i'd think it'd be national if this was the case?
Click to expand...

I don't think it's allowed by credit card companies, but I have seen it before.

And 20 cents is probably more than it costs them. It's less than 10 cents per gallon, IIRC. I used to work as bookeeper for gas station company.
 
It is common at large stations on the Interstate. FlyingJ, Loves, TA, et al have electronic signs that switch between cash and credit diesel prices. (It is rare to have a price different on gasoline.)
 
there are a few around me I've seen that charge 5 cents more per gallon if you use credit. I wonder how much they're charged per transaction $2.40 seems like a lot (12 gallons @ 20 cents per gallon)
 
Oddly, gas stations make less profit (or even lose money on some sales) when prices are high - if it's bought on credit. The card company charges a percentage of the transaction plus a small fixed fee. But gas stations generally sell their gas for a fixed amount per gallon over their cost (not a percentage over cost).

At $3.50/gallon, a $30 purchase could mean a net loss after paying the CC fee. At $2.50 it would be barely breakeven.

I won't be surprised if more gas stations offer a discount for cash.
 
Originally posted by: zerocool84
you've never seen this before and live i detroit a large car area? I've seen this for years here in la.
Click to expand...

if you read the op again, i said i've seen placing charging 6-8 cents. 20 cents more per gallon is ridonkulous.
 
Originally posted by: Crono
Originally posted by: SandEagle
Originally posted by: Crono
It's to cover processing fee for credit card companies. They aren't making a profit on that price difference.
Click to expand...


really? i haven't seen it in any of the surrounding suburbs or in any of the tri-state area. i'd think it'd be national if this was the case?
Click to expand...

I don't think it's allowed by credit card companies, but I have seen it before.

And 20 cents is probably more than it costs them. It's less than 10 cents per gallon, IIRC. I used to work as bookeeper for gas station company.
Click to expand...

Sure it is. You can offer 'cash discounts', but not charge extra for credit cards. 😉
 
Min $0.50 processing fee + 5% sale for CC
For $3 / gallon, at least $0.65 is an expense for the first gallon.
For 10 gallons ($30 sale) that is $2 expense. $0.20 / gallon.

Do the math and understand that even if the station can not charge more for the CC usage, they can "offer" a discount for cash.


$0.35 overhead for debit card no matter what the total sale is
 
There's a few stations here in NYC (at least in the Bronx) that are pulling this shit. I also noticed a trend in these same gas stations here that only allow you to take out $20 from their ATM's at a time, while charging $2 in withdrawal fees.

I hope these fuckers go out of business and die soon.
 
Originally posted by: Common Courtesy
Min $0.50 processing fee + 5% sale for CC
For $3 / gallon, at least $0.65 is an expense for the first gallon.
For 10 gallons ($30 sale) that is $2 expense. $0.20 / gallon.

Do the math and understand that even if the station can not charge more for the CC usage, they can "offer" a discount for cash.


$0.35 overhead for debit card no matter what the total sale is
Click to expand...

You know. After reading your thread I feel like going ahead and buying 65 cents of gas at a time on my CC.
 
Originally posted by: amdhunter
Originally posted by: Common Courtesy
Min $0.50 processing fee + 5% sale for CC
For $3 / gallon, at least $0.65 is an expense for the first gallon.
For 10 gallons ($30 sale) that is $2 expense. $0.20 / gallon.

Do the math and understand that even if the station can not charge more for the CC usage, they can "offer" a discount for cash.


$0.35 overhead for debit card no matter what the total sale is
Click to expand...

You know. After reading your thread I feel like going ahead and buying 65 cents of gas at a time on my CC.
Click to expand...

Same. Stand outside for an hour filling up your tank. 🙂
 
Who is charging 5% for credit card processing? The highest I have heard of is 3%. Debit cards are flat rate which is why businesses prefer them.
 
The 2nd largest cost for Target is CreditCard fees, right after payroll.

Companies are asking congress to address this as they are nopw afraid they CC compaines will just up the fees since congress passed the CC bill for consumers.
 
Vendor agreements will pretty much prevent that from happening. In the US there are only a handful of companies that process the actual transactions. The biggest is Fidelity National Information Services; they have something like 75-80% of the market currently.
 
Originally posted by: Virtual Conan
Vendor agreements will pretty much prevent that from happening. In the US there are only a handful of companies that process the actual transactions. The biggest is Fidelity National Information Services; they have something like 75-80% of the market currently.
Click to expand...

If you mean 1 price for cash and 1 for credit then vendor agreemenst do not block it if it is a cash discount and not a extra charge for credit. Yea in the end its the same but the way you display it matters.


So $2.50 for gas with a 6% fee for credit is not allowed, per the agreement you speak of.

But

$2.65 a gallon with a 6% cash discount to make it $2.50 is allowed.
 
I planned to make this thread and I have pictures on my phone. It's common in San Diego. I don't get it though... just like the merchant's agreement banning minimum purchase amounts to keep it as good as cash, they disallow merchants passing the fee to the customer. It's why PayPal will not allow you to charge a fee for a credit transaction (though they pass it on to you :|).
 
Originally posted by: SandEagle
here in Detroit there are gas stations that charge different prices for regular gas, depending on if you use cash or credit. I've seen this before and thought a 6-8cents difference was nothing to complain about. Now I'm seeing a lot more of these places charges up to 20 cents more per gallon if you use credit. wtf. is that not gouging?

i just dont bother giving them business anymore, but still it irks me to see that this is allowed.
Click to expand...

In the Ann Arbor/Ypsi area if fluctuates wildly. Some days the gas station on the right has a 12 cent difference and the one on the left only has a 2 cent difference. The next day its reversed. Some days there is no difference at all.
 
It's usually still cheaper with credit if you have a card that gives cash back. 3% of $3.00 is 9 cents back per gallon with the card.
 
You must log in or register to reply here.

TRENDING THREADS

Back
Top