Credit Card Surcharges For Gas? (how much, buy, costs)

[majormadmax]

I just saw a news report on gas stations adding at least a 2% surcharge to prices if you use a credit card. It is a bit of a 'bait and switch' approach as the higher price is not advertised on their signs, just the 'cash' price shown.

I was just wondering if anyone has experienced this locally? I normally just note the price on the sign when I drive up, then use my credit card and swear somewhat quietly to myself afterwards on how much it costs to fill up the Jeep! I don't do that math as it makes my head hurt; so if a station is adding 8¢ or more to the price of a gallon of gas, I would like to know in advance!

Cheers! M2

[MontanaLaura]

Howdy!
While I'm not in TX, we're thinking about moving down if my Navy son gets stationed at Lackland and retires there (his wife is a SA native).
The gas stations up here in MT have done that for years....2-3%. I know one owner and we talked about that....but she does it in reverse and gets more customers! She puts up $4.29 for regular and if you pay cash, she knocks off 4 cents/gal. She is charged a % from the credit card companies and has to recoup it somehow. So, I pay cash for my gas purchases.
MTLaura

Yes, that was what she was charging for gas last week. Since her station is 37 miles up the road, I only fill up when I'm up there. Here in my small (350 people) town, it just went up Monday to $4.35.

[Steel Man]

I'm glad that I use Valero. I use their gas card and they don't charge extra as it is their bank.

I also read about a week ago that some credit card companies are lowering the percentage they charge the gas station, but only on large fill-ups.

[chipsndip]

When credit cards first started appearing gas stations did this a lot - my understanding was that the credit card companies frown on this behavior and will ban a business from processing their credit cards if they practice this... I need to look that up and find out if that's still the case or not.

[the_dimwit]

M2,

The credit price is supposed to be clearly advertised at the pump (but not on the sign). If it isn't, report the station to the BBB. This type of "bait-and-switch" is illegal (false advertising or assumption) and should be stopped. It's another way for gas stations to a) pas on their costs to the consumer since some bank cards are charging more or b) make a few extra bucks.

--Dim

[sinsativ]

I just got a Walmart/Sams card, use it religiously for gas, get a 3cent discount on gas. And if you buy at a Sams, its an extra discount of 5cents on top.

[ged_782]

Originally Posted by chipsndip

When credit cards first started appearing gas stations did this a lot - my understanding was that the credit card companies frown on this behavior and will ban a business from processing their credit cards if they practice this... I need to look that up and find out if that's still the case or not.

That is the way I understood it too. The merchants can offer a discount for cash purchases, but can't tack on extra fees for credit cards.

Several years ago, I believe some of the local gas stations were offering slight discounts off the posted prices for cash payment.

[slaleman]

I remember when I was younger the gas stations up north would advertise both a cash and credit price (well before "pay at the pump"). I don't remember when it stopped...maybe it was a holdover from the high prices during the late 70's. I wouldn't be surprised to see it come back again.

[the_dimwit]

Here's an interesting article from Consumerist:

Credit Cards: 10 Things You Might Not Know About Your Credit Card

It covers a whole range of things you may not know, including the topic of this thread.

--Dim

[SanAntoQT]

Interesting information! There are several eateries and other establishments I frequent, which have signs posted indicating that there is a service charge or a minimum amount required for using a credit card. I wasn't aware that this was a no-no. I'll have to print and carry that list around with me from now one.