Not Logged In Log In   Sign Up   Points Leaders
Follow Us    11:49 PM

Message Forum - Read Message

Category: General Gas Talk > Topics Add to favorite topics   Post new topicPost New Topic
Author Topic: Difference in cash and credit card prices Back to Topics
jacksonmeow

Sophomore Author
Oklahoma City

Posts:131
Points:75,285
Joined:Jun 2011
Message Posted: Nov 19, 2012 8:47:20 PM

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.
REPLIES (newest first) Post a Reply
Profile Pic
rulerMA
Rookie Author Massachusetts

Posts:75
Points:90,910
Joined:Oct 2010
Message Posted: Dec 29, 2012 7:22:38 PM

Sometimes, because the credit card companies charge to use their credit cards.
Profile Pic
1stupedaso
Veteran Author Kentucky

Posts:323
Points:213,790
Joined:Dec 2012
Message Posted: Dec 28, 2012 11:11:35 AM

Swifty charges more for credit on their gas
Profile Pic
Gas_Buddy
Champion Author Maryland

Posts:28,558
Points:3,371,200
Joined:Aug 2004
Message Posted: Dec 27, 2012 3:30:38 PM

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.
Profile Pic
traffic cop
Champion Author Boston

Posts:2,240
Points:831,995
Joined:Oct 2004
Message Posted: Dec 27, 2012 12:10:32 PM

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.
Profile Pic
cifuentesab
Champion Author Sacramento

Posts:2,289
Points:841,000
Joined:Jul 2011
Message Posted: Dec 27, 2012 11:51:22 AM

station owners get a surcharge for credit
Profile Pic
MIT05
Champion Author Massachusetts

Posts:5,755
Points:1,722,060
Joined:Aug 2008
Message Posted: Dec 10, 2012 5:43:33 AM

More for credit card reg or diesel at some stations here.
Profile Pic
DI
Champion Author Twin Cities

Posts:21,979
Points:4,484,980
Joined:Apr 2001
Message Posted: Dec 9, 2012 9:06:35 PM

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).
Profile Pic
BartandLisa
Champion Author Newfoundland

Posts:3,845
Points:752,220
Joined:Feb 2012
Message Posted: Dec 9, 2012 4:42:32 PM

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.
Profile Pic
DI
Champion Author Twin Cities

Posts:21,979
Points:4,484,980
Joined:Apr 2001
Message Posted: Dec 9, 2012 12:10:02 AM

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.
Profile Pic
PithyOpiner
Champion Author Stockton

Posts:17,715
Points:1,849,940
Joined:Jun 2008
Message Posted: Dec 8, 2012 9:03:12 PM

They sell more gasoline than they do diesel. Easier for them to absorb the extra cost they incur for allowing credit cards.
Profile Pic
WEPSMAN
Champion Author South Dakota

Posts:11,050
Points:2,315,725
Joined:Mar 2005
Message Posted: Nov 29, 2012 10:48:51 AM

Cedit is higher due to the fees paid by the station.
Profile Pic
jacksonmeow
Sophomore Author Oklahoma City

Posts:131
Points:75,285
Joined:Jun 2011
Message Posted: Nov 21, 2012 7:16:19 PM

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
Profile Pic
forresj
Champion Author Wilmington

Posts:5,011
Points:878,580
Joined:May 2005
Message Posted: Nov 21, 2012 8:38:22 AM

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!!!"
Profile Pic
Gas_Buddy
Champion Author Maryland

Posts:28,558
Points:3,371,200
Joined:Aug 2004
Message Posted: Nov 20, 2012 1:54:37 PM

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.

Profile Pic
valby
Champion Author Massachusetts

Posts:4,610
Points:764,820
Joined:Jan 2005
Message Posted: Nov 20, 2012 9:28:10 AM

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.
Profile Pic
OceanArcher
Champion Author Mississippi

Posts:7,338
Points:1,653,775
Joined:May 2004
Message Posted: Nov 20, 2012 9:24:34 AM

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 .....
Profile Pic
twt
Champion Author Virginia Beach

Posts:11,417
Points:1,325,910
Joined:Mar 2005
Message Posted: Nov 20, 2012 9:00:24 AM

No difference, here.
Profile Pic
forresj
Champion Author Wilmington

Posts:5,011
Points:878,580
Joined:May 2005
Message Posted: Nov 20, 2012 8:30:41 AM

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]
Profile Pic
MertieMan
Champion Author Lexington

Posts:16,475
Points:3,233,460
Joined:May 2005
Message Posted: Nov 20, 2012 5:24:43 AM

No difference here except maybe the credit card company giving you a small percentage back, and it is definitely small.
Profile Pic
jes
Champion Author Pennsylvania

Posts:17,820
Points:3,685,150
Joined:Jun 2003
Message Posted: Nov 20, 2012 5:17:35 AM

In my area there is no difference between cash or credit.
Profile Pic
traffic cop
Champion Author Boston

Posts:2,240
Points:831,995
Joined:Oct 2004
Message Posted: Nov 20, 2012 1:19:22 AM

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.
Profile Pic
EdWoods
Champion Author Maryland

Posts:1,176
Points:198,385
Joined:Aug 2012
Message Posted: Nov 19, 2012 11:52:49 PM

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......
Profile Pic
JCLNC
All-Star Author Greensboro

Posts:915
Points:231,660
Joined:Jun 2011
Message Posted: Nov 19, 2012 11:23:14 PM

One station near me charges 10 cents more for credit.
Profile Pic
HeavyDuty_cache
Champion Author Omaha

Posts:14,470
Points:2,795,230
Joined:Sep 2005
Message Posted: Nov 19, 2012 11:17:41 PM

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.

Profile Pic
AFTSGTRETIRED
Champion Author Detroit

Posts:2,761
Points:551,055
Joined:Jul 2008
Message Posted: Nov 19, 2012 9:35:25 PM

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.
Post a reply Back to Topics