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jacksonmeow Rookie Author Oklahoma City Posts:81 Points:57,885 Joined:Jun 2011	Message Posted: Nov 19, 2012 8:47:20 PM Ignore jacksonmeow Report Abuse I am going to ask the dumbest question ever? I have seen that there is some difference in prices for diesel fuel if you pay via cash or credit card. Do you guys know why? Is it due to credit card surcharge? If it is, then why they not charge this on gasoline prices.

jacksonmeow

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Oklahoma City

Posts:81
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Joined:Jun 2011

Message Posted: Nov 19, 2012 8:47:20 PM

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I am going to ask the dumbest question ever? I have seen that there is some difference in prices for diesel fuel if you pay via cash or credit card. Do you guys know why? Is it due to credit card surcharge? If it is, then why they not charge this on gasoline prices.

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rulerMA Rookie Author Massachusetts Posts:75 Points:80,110 Joined:Oct 2010	Message Posted: Dec 29, 2012 7:22:38 PM Ignore rulerMA Report Abuse Sometimes, because the credit card companies charge to use their credit cards.
1stupedaso Sophomore Author Kentucky Posts:197 Points:70,020 Joined:Dec 2012	Message Posted: Dec 28, 2012 11:11:35 AM Ignore 1stupedaso Report Abuse Swifty charges more for credit on their gas
Gas_Buddy Champion Author Maryland Posts:25,947 Points:3,030,065 Joined:Aug 2004	Message Posted: Dec 27, 2012 3:30:38 PM Ignore Gas_Buddy Report Abuse cifuentesab wrote: "station owners get a surcharge for credit" No, station owners do not get a surcharge for credit. Station owners pay a transaction fee for credit. They "give" (to the credit card companies), not "get"; they pay out, not receive. Two entirely different things.
traffic cop Champion Author Boston Posts:1,236 Points:532,220 Joined:Oct 2004	Message Posted: Dec 27, 2012 12:10:32 PM Ignore traffic cop Report Abuse This matter shows up on several variously titled threads. Do the math: a retailer pays the processing bank about 4% for a transaction. 4% x $3.50/gallon = 14 cents transaction fee per gallon. (Most price differences in the Boston area are about 10 cents per gallon cash discount.) It makes sense for the retailer to increase his cash sales.
cifuentesab All-Star Author Stockton Posts:645 Points:501,850 Joined:Jul 2011	Message Posted: Dec 27, 2012 11:51:22 AM Ignore cifuentesab Report Abuse station owners get a surcharge for credit
MIT05 Champion Author Massachusetts Posts:4,142 Points:1,386,350 Joined:Aug 2008	Message Posted: Dec 10, 2012 5:43:33 AM Ignore MIT05 Report Abuse More for credit card reg or diesel at some stations here.
DI Champion Author Twin Cities Posts:20,164 Points:4,144,335 Joined:Apr 2001	Message Posted: Dec 9, 2012 9:06:35 PM Ignore DI Report Abuse There's also a cost to using cash. I hadn't thought about it until there was a comment in my co-op's newsletter. If you're dealing with a high volume station, that cash has to be counted, stored, deposited, etc. And, because cash is much more negotiable than credit card receipts there's a higher probability of loss due to theft (from both employee and external thieves).
BartandLisa Champion Author Newfoundland Posts:2,120 Points:414,425 Joined:Feb 2012	Message Posted: Dec 9, 2012 4:42:32 PM Ignore BartandLisa Report Abuse There is always a cost to the merchant for credit card use, whereas cash is "free" and debit cards usually have a minimal flat fee. Some retailers around here offer a 1 or 2% discount for cash or debit.
DI Champion Author Twin Cities Posts:20,164 Points:4,144,335 Joined:Apr 2001	Message Posted: Dec 9, 2012 12:10:02 AM Ignore DI Report Abuse Since jacksonmeow specifically mentioned "some difference in prices for diesel fuel if you pay via cash or credit card", I'll address the issue from that standpoint. I suspect jacksonmeow saw that difference at truck stops (at least that's where I see diesel prices specified for cash/credit). I suspect the difference is the amount that a typical gasoline customer buys vs. what a typical diesel customer buys. The former probably buys 10-20 gal. while the latter buy 10 times that quantity. A truck stop hopes to make up the increased cost of credit on gasoline by selling pop, candy, etc. to the two or more occupants. A trucker traveling alone isn't likely to cover the increased credit costs — especially when they've bought 10 times as much fuel.
PithyOpiner Champion Author Stockton Posts:16,175 Points:1,592,570 Joined:Jun 2008	Message Posted: Dec 8, 2012 9:03:12 PM Ignore PithyOpiner Report Abuse They sell more gasoline than they do diesel. Easier for them to absorb the extra cost they incur for allowing credit cards.
WEPSMAN Champion Author South Dakota Posts:10,503 Points:2,021,000 Joined:Mar 2005	Message Posted: Nov 29, 2012 10:48:51 AM Ignore WEPSMAN Report Abuse Cedit is higher due to the fees paid by the station.
jacksonmeow Rookie Author Oklahoma City Posts:81 Points:57,885 Joined:Jun 2011	Message Posted: Nov 21, 2012 7:16:19 PM Ignore jacksonmeow Report Abuse Generally here in OKC, I dont see surcharge on gasoline. the only surcharge I see is on diesel prices that are along the interstates, generally the truck stops such as flying j, loves etc. some gas stations which sell diesel only post cash prices
forresj Champion Author Wilmington Posts:2,754 Points:538,280 Joined:May 2005	Message Posted: Nov 21, 2012 8:38:22 AM Ignore forresj Report Abuse Credit card is a shopping convienence for consumers not the store owners. The way it works is banks charge a fee for each transaction. Gas stations are probably passing the fee to consumers because the profit margin on gasoline is small already. Banks are likely squeezing more from commercial gas stations by increasing fees to replace the lost fees from consumer credit cards. Ultimately, the consumer pays for the increased fees. That's why it's better to pay cash for gasoline if it's offerred at a cheaper price at gas stations. Banks get rich from both ends (store owners and consumers) because they get transaction fees from the store owners and interest from consumers when consumers don't pay off their bill at the end of the month. If you pay by credit, then pay off your balance every month to avoid the interest. You'll learn to feel good every month knowing that you've "Stuck It To Man!!!"
Gas_Buddy Champion Author Maryland Posts:25,947 Points:3,030,065 Joined:Aug 2004	Message Posted: Nov 20, 2012 1:54:37 PM Ignore Gas_Buddy Report Abuse Gary9696 You wrote: "There is also a difference on gasoline prices cash vs credit. I use my credit card for a 5% reward. I buy my diesel at Kroger, or Meijer and there is no difference in cash, or credit." As your logo (your avatar) indicates you're a member of GasBuddy Organization Inc, perhaps you might want to explain to the original post more than simply saying "There is also a difference on gasoline prices cash vs credit." Some, perhaps, that goes further. As for you using your credit card for a 5% reward, are you saying there's a reward or a rebate? And as for using your credit card, and where you shop, Kroger or Meijer, are you speaking on behalf of Gas Buddy as to where to buy fuel, or are you speaking as an individual. Part of the reason I ask is that your icon or avatar identifies you as representing GasBuddy Organization Inc, but it doesn't identify you as a moderator nor do you saying you're speaking as a moderator in your post. I'm just trying to differentiate between your or Gas Buddy's official and unofficial responses.
valby Champion Author Massachusetts Posts:2,886 Points:422,190 Joined:Jan 2005	Message Posted: Nov 20, 2012 9:28:10 AM Ignore valby Report Abuse One local station that I know of charges 3 cents more each gallon extra to use a credit card. I notice that there appear to be fewer cars getting gas at that location as I was a former customer until He started charging me to use a credit card.
OceanArcher Champion Author Mississippi Posts:5,683 Points:1,323,400 Joined:May 2004	Message Posted: Nov 20, 2012 9:24:34 AM Ignore OceanArcher Report Abuse to JacksonMeow -- Your question, ... " is some difference in prices for diesel fuel if you pay via cash or credit card. Do you guys know why? " My thoughts are --> the individual fuel station doesn't care a whit about you getting "cents back" on some national fuel card bonus program - that cost is not coming out of their bottom line. IMHO, the fuel station is attempting to cover the cost of doing business, and nothing more. It's true what Jes writes, that in a lot of areas of the country there is no "upgharge" for the use of a credit card, but that practice is slowly working its way into every nook and cranny of the country. If it's not in your area yet, enjoy .....
twt Champion Author Virginia Beach Posts:8,700 Points:993,635 Joined:Mar 2005	Message Posted: Nov 20, 2012 9:00:24 AM Ignore twt Report Abuse No difference, here.
forresj Champion Author Wilmington Posts:2,754 Points:538,280 Joined:May 2005	Message Posted: Nov 20, 2012 8:30:41 AM Ignore forresj Report Abuse Credit card is a shopping convienence for consumers not the store owners. The way it works is banks charge a fee for each transaction. Gas stations are probably passing the fee to consumers because the profit margin on gasoline is small already. Banks are likely squeezing more from commercial gas stations by increasing fees to replace the lost fees from consumer credit cards. Ultimately, the consumer pays for the increased fees. That's why it's better to pay cash for gasoline if it's offerred at a cheaper price at gas stations. Banks get rich from both ends (store owners and consumers) because they get transaction fees from the store owners and interest from consumers when consumers don't pay off their bill at the end of the month. If you pay by credit, then pay off your balance every month to avoid the interest. You'll learn to feel good every month knowing that you've "Stuck It To Man!!!" [Edited by: forresj at 11/20/2012 8:32:35 AM EST]
MertieMan Champion Author Lexington Posts:14,763 Points:2,890,635 Joined:May 2005	Message Posted: Nov 20, 2012 5:24:43 AM Ignore MertieMan Report Abuse No difference here except maybe the credit card company giving you a small percentage back, and it is definitely small.
jes Champion Author Pennsylvania Posts:16,140 Points:3,347,500 Joined:Jun 2003	Message Posted: Nov 20, 2012 5:17:35 AM Ignore jes Report Abuse In my area there is no difference between cash or credit.
traffic cop Champion Author Boston Posts:1,236 Points:532,220 Joined:Oct 2004	Message Posted: Nov 20, 2012 1:19:22 AM Ignore traffic cop Report Abuse The credit card company charges about 2% to the vendor. So it costs your retailer 7 or 8 cents a gallon to transact that. It makes sense to offer a cash discount. That way cash buyers don't subsidize the credit card customers. Around Boston, the cash discount (or card surcharge, if you want to look at it that way) is usually 10 cents. An interesting site is true cost of credit cards Not sure if their data analysis is correct, but it looks valid.
EdWoods Veteran Author Maryland Posts:416 Points:62,725 Joined:Aug 2012	Message Posted: Nov 19, 2012 11:52:49 PM Ignore EdWoods Report Abuse Parts of the Country seem to have a lower price for cash customers, usually 5 cents per gallon. Personal opinion, I think the practice of charging more for Credit should be outlawed......
JCLNC All-Star Author Greensboro Posts:902 Points:218,460 Joined:Jun 2011	Message Posted: Nov 19, 2012 11:23:14 PM Ignore JCLNC Report Abuse One station near me charges 10 cents more for credit.
HeavyDuty_cache Champion Author Omaha Posts:12,959 Points:2,479,685 Joined:Sep 2005	Message Posted: Nov 19, 2012 11:17:41 PM Ignore HeavyDuty_cache Report Abuse Around here it seems that stations along the interstates the big truck stops sell their Diesel fuel at two prices with credit being higher. One reason is that the station is trying to pay credit card fees by charging credit users more. Since big trucks use a lot of fuel they can make up the differences.
Gary9696 Champion Author Detroit Posts:1,092 Points:224,755 Joined:Jul 2008	Message Posted: Nov 19, 2012 9:35:25 PM Ignore Gary9696 Report Abuse There is also a difference on gasoline prices cash vs credit. I use my credit card for a 5% reward. I buy my diesel at Kroger, or Meijer and there is no difference in cash, or credit.