Gas Stations - Higher prices for using a creditcard?

[aphex]

I may be mistaken, as i've yet to any research on the topic, but i could have sworn it was illegal (or at least against the credit card agreements) for companies who accept credit to charge a higher price for using a credit card as opposed to cash.

Well many of the gas stations here in Tampa now charge two prices. They list on the sign one price, then when you get to the pump, it shows two prices, if you pay with a credit card they charge an extra $0.04/gallon.

Does this happen elsewhere?

 

[MrChad]

I've seen this at some gas stations near my parents' house recently.

 

[txrandom]

I always thought it was illegal, I haven't seen it in Texas.

 

[GrantMeThePower]

It is absolutly not illegal to charge a surcharge for the use of a credit card, though it may be illegal for them to do it without telling you.

 

[Pabster]

Yeah, I've seen it, though not here in Iowa.

I routinely see "Get 3 cents off per gallon" if you pay cash though.

 

[mugs]

It's not illegal, and it's not against the merchant agreement as long as it is phrased as a "cash discount" (I've e-mailed Visa and they confirmed that)

 

[Viper GTS]

There is nothing illegal about it, though it is technically against Visa/MC policies.

The easy way around it? Cash discounts.

Viper GTS

 

[marvdmartian]

Never seen such a thing myself.

I do have a friend that owns a nearby Shell station. He told me once that if a person uses a major credit card, he only makes one to two cents a gallon profit after expenses. If they use a Shell credit card, he makes 4 or 5 cents a gallon. Not sure if that's applicable to the original question, but it might help explain why they charge more for using a major CC.

 

[daveshel]

Discount for cash has been going on at gas stations for decades, but I haven't seen much of it lately. They want to encourage people to use cards at the pump so thet can cut human costs.

 

[Riverhound777]

I hate it when fast food places do it as well. Taco bell near my work doesn't accept credit cards and charge 99 cents for using a debt card. I always forget when I go there and end up paying $4 for a $3 meal 🙁

 

[MrChad]

Originally posted by: Viper GTS
There is nothing illegal about it, though it is technically against Visa/MC policies.

The easy way around it? Cash discounts.

Viper GTS

According to MasterCard's merchant policies, it's allowed.

9.12.2 Charges to Cardholders
A merchant must not directly or indirectly require any MasterCard cardholder
to pay a surcharge or any part of any merchant discount or any
contemporaneous finance charge in connection with a MasterCard card
transaction. A merchant may provide a discount to its customers for cash
payments. A merchant is permitted to charge a fee (such as a bona fide
commission, postage, expedited service or convenience fees, and the like) if
the fee is imposed on all like transactions regardless of the form of payment
used.

 

[herbiehancock]

Originally posted by: GrantMeThePower
It is absolutly not illegal to charge a surcharge for the use of a credit card, though it may be illegal for them to do it without telling you.

It is completely against the merchant's TOS to surcharge for use of a credit card......but it's not illegal or against MC/Vias's TOS for merchants to offer discounts for use of cash, which is what the gas pumps are probably displaying. We've a few stations around our area that boldly display a .03/gal discount for cash users.

 

[aphex]

Originally posted by: daveshel
Discount for cash has been going on at gas stations for decades, but I haven't seen much of it lately. They want to encourage people to use cards at the pump so thet can cut human costs.

Well all they are encouraging is me to do is to go to another station. 🙂

 

[mugs]

Originally posted by: MrChad

Originally posted by: Viper GTS
There is nothing illegal about it, though it is technically against Visa/MC policies.

The easy way around it? Cash discounts.

Viper GTS

According to MasterCard's merchant policies, it's allowed.

9.12.2 Charges to Cardholders
A merchant must not directly or indirectly require any MasterCard cardholder
to pay a surcharge or any part of any merchant discount or any
contemporaneous finance charge in connection with a MasterCard card
transaction. A merchant may provide a discount to its customers for cash
payments. A merchant is permitted to charge a fee (such as a bona fide
commission, postage, expedited service or convenience fees, and the like) if
the fee is imposed on all like transactions regardless of the form of payment
used.

That's what he said. 😉
</the office>

 

[Corporate Thug]

Originally posted by: txrandom
I always thought it was illegal, I haven't seen it in Texas.

why would it be? they have to pay a surcharge for credit cards and they are just passing on those costs to the consumer

 

[MulLa]

I love "cash discounts". Whenever I buy something expensive I always ask if I get a discount for cash, if they say "no" then I take out my CC, if you don't give me a discount I'll let the CC company take a cut! 😛

 

[MrChad]

Originally posted by: mugs

Originally posted by: MrChad

Originally posted by: Viper GTS
There is nothing illegal about it, though it is technically against Visa/MC policies.

The easy way around it? Cash discounts.

Viper GTS

According to MasterCard's merchant policies, it's allowed.

9.12.2 Charges to Cardholders
A merchant must not directly or indirectly require any MasterCard cardholder
to pay a surcharge or any part of any merchant discount or any
contemporaneous finance charge in connection with a MasterCard card
transaction. A merchant may provide a discount to its customers for cash
payments. A merchant is permitted to charge a fee (such as a bona fide
commission, postage, expedited service or convenience fees, and the like) if
the fee is imposed on all like transactions regardless of the form of payment
used.

That's what he said. 😉
</the office>

I know, I was just pointing out that it's not against MC policies.

 

[BigJ]

Originally posted by: MrChad

Originally posted by: mugs

Originally posted by: MrChad

Originally posted by: Viper GTS
There is nothing illegal about it, though it is technically against Visa/MC policies.

The easy way around it? Cash discounts.

Viper GTS

According to MasterCard's merchant policies, it's allowed.

9.12.2 Charges to Cardholders
A merchant must not directly or indirectly require any MasterCard cardholder
to pay a surcharge or any part of any merchant discount or any
contemporaneous finance charge in connection with a MasterCard card
transaction. A merchant may provide a discount to its customers for cash
payments. A merchant is permitted to charge a fee (such as a bona fide
commission, postage, expedited service or convenience fees, and the like) if
the fee is imposed on all like transactions regardless of the form of payment
used.

That's what he said. 😉
</the office>

I know, I was just pointing out that it's not against MC policies.

😕

Did you read what you posted?

9.12.2 Charges to Cardholders
A merchant must not directly or indirectly require any MasterCard cardholder
to pay a surcharge or any part of any merchant discount or any
contemporaneous finance charge in connection with a MasterCard card
transaction. A merchant may provide a discount to its customers for cash
payments. A merchant is permitted to charge a fee (such as a bona fide
commission, postage, expedited service or convenience fees, and the like) if
the fee is imposed on all like transactions regardless of the form of payment
used.

Charging a higher price because you're using a CC is against the TOS. Offering a discount because you're using cash is how you get around it.

 

[MrChad]

Originally posted by: BigJ
😕

Did you read what you posted?

9.12.2 Charges to Cardholders
A merchant must not directly or indirectly require any MasterCard cardholder
to pay a surcharge or any part of any merchant discount or any
contemporaneous finance charge in connection with a MasterCard card
transaction. A merchant may provide a discount to its customers for cash
payments. A merchant is permitted to charge a fee (such as a bona fide
commission, postage, expedited service or convenience fees, and the like) if
the fee is imposed on all like transactions regardless of the form of payment
used.

Charging a higher price because you're using a CC is against the TOS. Offering a discount because you're using cash is how you get around it.

😕 indeed.

How is one different from the other? A surcharge for a CC transaction is a violation, but a discount for cash is not? Isn't that saying the same thing in a different way?

 

[waggy]

yeap. some places are doing it. one place had a 5cent discount for cash.

 

[HomeAppraiser]

I can't do it for my business! If I have a COD order for say $425 and they suddenly decide to pay with a VISA, that takes almost $25 off with service and transaction fees! Screw that.

 

[waggy]

Originally posted by: MrChad

Originally posted by: BigJ
😕

Did you read what you posted?

9.12.2 Charges to Cardholders
A merchant must not directly or indirectly require any MasterCard cardholder
to pay a surcharge or any part of any merchant discount or any
contemporaneous finance charge in connection with a MasterCard card
transaction. A merchant may provide a discount to its customers for cash
payments. A merchant is permitted to charge a fee (such as a bona fide
commission, postage, expedited service or convenience fees, and the like) if
the fee is imposed on all like transactions regardless of the form of payment
used.

Charging a higher price because you're using a CC is against the TOS. Offering a discount because you're using cash is how you get around it.

😕 indeed.

How is one different from the other? A surcharge for a CC transaction is a violation, but a discount for cash is not? Isn't that saying the same thing in a different way?

how is one different? well with one is a discount and the other is makeing someone pay more fo useing a CC.

but yes its pretty much the same just worded diffrent. but it makes all the diffrence. one is not against the TOS>

 

[BigJ]

Originally posted by: MrChad

Originally posted by: BigJ
😕

Did you read what you posted?

9.12.2 Charges to Cardholders
A merchant must not directly or indirectly require any MasterCard cardholder
to pay a surcharge or any part of any merchant discount or any
contemporaneous finance charge in connection with a MasterCard card
transaction. A merchant may provide a discount to its customers for cash
payments. A merchant is permitted to charge a fee (such as a bona fide
commission, postage, expedited service or convenience fees, and the like) if
the fee is imposed on all like transactions regardless of the form of payment
used.

Charging a higher price because you're using a CC is against the TOS. Offering a discount because you're using cash is how you get around it.

😕 indeed.

How is one different from the other? A surcharge for a CC transaction is a violation, but a discount for cash is not? Isn't that saying the same thing in a different way?

It works out to the same thing in many cases, but no it is not.

The best way to illustrate it is the following.

For example, the price of gas is $2.60 a gallon. You offer a cash discount of 5 cents a gallon. Now the only way you get that discount is by paying with cash. If you pay by check, MO, traveler's checks, or credit cards etc you still pay the normal price.

Now say that the price is $2.55 and there's a 5 cents a gallon surchage for CC purchases. If you pay by cash, check, MO, traveler's checks, etc you still pay the normal price, but you're discriminating against CCs because of finance charges the business incurs.

 

[MrChad]

Originally posted by: BigJ

Originally posted by: MrChad

Originally posted by: BigJ
😕

Did you read what you posted?

9.12.2 Charges to Cardholders
A merchant must not directly or indirectly require any MasterCard cardholder
to pay a surcharge or any part of any merchant discount or any
contemporaneous finance charge in connection with a MasterCard card
transaction. A merchant may provide a discount to its customers for cash
payments. A merchant is permitted to charge a fee (such as a bona fide
commission, postage, expedited service or convenience fees, and the like) if
the fee is imposed on all like transactions regardless of the form of payment
used.

Charging a higher price because you're using a CC is against the TOS. Offering a discount because you're using cash is how you get around it.

😕 indeed.

How is one different from the other? A surcharge for a CC transaction is a violation, but a discount for cash is not? Isn't that saying the same thing in a different way?

It works out to the same thing in many cases, but no it is not.

The best way to illustrate it is the following.

For example, the price of gas is $2.60 a gallon. You offer a cash discount of 5 cents a gallon. Now the only way you get that discount is by paying with cash. If you pay by check, MO, traveler's checks, or credit cards etc you still pay the normal price.

Now say that the price is $2.55 and there's a 5 cents a gallon surchage for CC purchases. If you pay by cash, check, MO, traveler's checks, etc you still pay the normal price, but you're discriminating against CCs because of finance charges the business incurs.

Gotcha, that makes sense. :thumbsup:

I apologize for my previous asinine posts. 😱 😛

 

[jadinolf]

My local station charges a buck for using a credit card. I discovered that several months ago.

I will never go there again.

This subject has been discussed here before.