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Author Topic: Difference in cash and credit card prices Back to Topics
jacksonmeow

Sophomore Author
Oklahoma City

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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.
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rulerMA
Rookie Author Massachusetts

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Message Posted: Dec 29, 2012 7:22:38 PM

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

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Message Posted: Dec 28, 2012 11:11:35 AM

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

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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.
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traffic cop
Champion Author Boston

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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.
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cifuentesab
Champion Author Sacramento

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Message Posted: Dec 27, 2012 11:51:22 AM

station owners get a surcharge for credit
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MIT05
Champion Author Massachusetts

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Message Posted: Dec 10, 2012 5:43:33 AM

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

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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).
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BartandLisa
Champion Author Newfoundland

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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.
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DI
Champion Author Twin Cities

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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.
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PithyOpiner
Champion Author Stockton

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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.
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WEPSMAN
Champion Author South Dakota

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Message Posted: Nov 29, 2012 10:48:51 AM

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

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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
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forresj
Champion Author Wilmington

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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!!!"
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Gas_Buddy
Champion Author Maryland

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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.

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valby
Champion Author Massachusetts

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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.
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OceanArcher
Champion Author Mississippi

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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 .....
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twt
Champion Author Virginia Beach

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Message Posted: Nov 20, 2012 9:00:24 AM

No difference, here.
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forresj
Champion Author Wilmington

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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]
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MertieMan
Champion Author Lexington

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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.
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jes
Champion Author Pennsylvania

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Message Posted: Nov 20, 2012 5:17:35 AM

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

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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.
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EdWoods
Champion Author Maryland

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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......
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JCLNC
All-Star Author Greensboro

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Message Posted: Nov 19, 2012 11:23:14 PM

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

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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.

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TSgtCarverRetired
Champion Author Detroit

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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.
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