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So I am warming up to speedway reward points but how do they pay for this? where does the money come from for them to give away points or money? Something has to be raise a little to cover the giveaways? is it worth it? I haven't used it for anything other than soda and the rare hotdog. I haven't ever used a gas card with cash back or points or discounted rates like the BP card or Citgo card that say 2% back. I have always figured these to be scams, while you are getting something for free where are you paying 3cents more for something to cover the giveaways.
I've used a Shell Mastercard for years. The rebate is 5% on all gasoline purchases at Shell stations, which is around 15-20 cents per gallon. The rebate is automatically deducted from the balance month to month, no hassles and no necessity to request the rebate when it goes over a certain baseline. There is also a 1% rebate on most other purchases, including gasoline from non-Shell stations. On a 3,000 mile round trip that would use 100 gallons, that is like getting 5 gallons free. The card can be used as a general-purpose everyday Mastercard, and it is issued and billed through Citi, whom I've never had any problems with.
Occasionally, on a trip, I find that there is no Shell station when needed, but 90% of the time, there is one convenient enough. Shell is sometimes higher priced than some of the competitors, but I've learned that it doesn't pay to buy gas at the cut-rate off-brand stations. Yes, it's often the same gas, but cut-rate unbranded stations often are not diligent about keeping water and impurities out of their holding tanks.
In any case, the card user's gas rings up at the same price as everyone else's, so there is no hidden scam against using a card.
There are a couple of reasons they are able to do this. First and probably most obvious is that, unfortunately, most people don't pay theri balance in full every month so they are collecting a crapton if interest. If people didn't use the card to pay for their gas they wouldn't get this residual income, so they offer a small rebate to encourage folks to use it.
The second reason is that studies have shown people will generally spend more when using plastic. And offering the rebate gives people additional justification to use the card. There's not much markup in gas, but there is in p[retty much everything else you buy at a convenience store; so if you get you gas and pick up a couple of burritos, a bottle of pop, a newspaper, some fuzzy dice for fyour rear-view mirror, and a couple of 12-packs, they will have significantly increased their margin dollars on that sale by getting you to shop there.
I've used a Shell Mastercard for years. The rebate is 5% on all gasoline purchases at Shell stations, which is around 15-20 cents per gallon. The rebate is automatically deducted from the balance month to month, no hassles and no necessity to request the rebate when it goes over a certain baseline. There is also a 1% rebate on most other purchases, including gasoline from non-Shell stations. On a 3,000 mile round trip that would use 100 gallons, that is like getting 5 gallons free. The card can be used as a general-purpose everyday Mastercard, and it is issued and billed through Citi, whom I've never had any problems with.
Occasionally, on a trip, I find that there is no Shell station when needed, but 90% of the time, there is one convenient enough. Shell is sometimes higher priced than some of the competitors, but I've learned that it doesn't pay to buy gas at the cut-rate off-brand stations. Yes, it's often the same gas, but cut-rate unbranded stations often are not diligent about keeping water and impurities out of their holding tanks.
In any case, the card user's gas rings up at the same price as everyone else's, so there is no hidden scam against using a card.
I don't think they offer the 5% off anymore.. Hence I'll be buying gas from Costco except between July and September when Discovercard offers its 5% gas discount (and go with Chevron this entire time.)
I don't think they offer the 5% off anymore.. Hence I'll be buying gas from Costco except between July and September when Discovercard offers its 5% gas discount (and go with Chevron this entire time.)
Shell still rebates on my card. Last month $4.08 total rebates on $55 gas purchases and $260 other purchases. The invoice doesn't itemize which "other transactions" are eligible for rebate, but 5% on the gas would be 2.75.
But Shell has a heavy promotional push on "gas cards", which discount only 5c a gallon.
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