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Author Topic: Cash price vs credit price Back to Topics
GreatWaldoneous

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Boston

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Message Posted: Jul 30, 2013 9:42:27 PM

Allow the option of deciding to post different cash/credit prices because I never know which one to post (usually the cheapest) but I assume most times that it's a cash price. If you have to pay to withdraw the cash so that you can save money, it defeats the purpose!
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scoutmaster
Champion Author Pittsburgh

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Message Posted: Aug 23, 2013 6:48:52 AM

The price board on the web site and app could have check boxes that read

Cash
Credit
Both
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TxJeans
Champion Author Tampa

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Message Posted: Aug 23, 2013 6:34:17 AM

I still think that the cash and the credit almost need to be split out somehow to be one station in the MSL but on the price list board split out to two stations so they can float to their own location on the list.
This would be especially helpful to those in Long Island where I understand the price differential can be really quite big.
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scoutmaster
Champion Author Pittsburgh

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Message Posted: Aug 23, 2013 5:10:30 AM

I agree 100% with kwzh. It should be station specific.
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kwzh
Champion Author San Jose

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Message Posted: Aug 22, 2013 11:54:09 PM

GOBUTLER, it's probably going to be *station* specific, which is better yet. In states where there are no dual-priced stations, you wouldn't see any change, because nobody will list any stations as being dual-priced.
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Gas_Buddy
Champion Author Maryland

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Message Posted: Aug 22, 2013 10:19:03 PM

GOBUTLER

"should be state specific, some states don't have a discount for cash, all the same price"

What should be state specific?
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GOBUTLER
Champion Author Indianapolis

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Message Posted: Aug 22, 2013 9:47:29 PM

should be state specific, some states don't have a discount for cash, all the same price
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xbAG
Champion Author California

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Message Posted: Aug 22, 2013 8:55:34 PM

I always write 'cash' on my posts.
clears any confusion.
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scoutmaster
Champion Author Pittsburgh

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Message Posted: Aug 17, 2013 8:24:08 PM

I think CASH ALL DAY means exactly what it says, Gas_Buddy! CASH ALL DAY!
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Gas_Buddy
Champion Author Maryland

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Message Posted: Aug 17, 2013 5:47:49 PM

jarvisd39:

"CASH ALL DAY"

As that was the complete post, what is that supposed to mean? Are you saying that some gas stations charge cash only all day or that you only pay cash, or that all gas stations should charge cash only all day? Or is there another meaning to what you wrote?

Sorry but I must be missing the full meaning of the post.
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jarvisd39
All-Star Author El Paso

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Message Posted: Aug 17, 2013 12:58:24 AM

CASH ALL DAY
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TxJeans
Champion Author Tampa

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Message Posted: Aug 16, 2013 9:48:43 PM

I have been thinking about the cash credit issue, and I think that just adding the extra fields for credit at the dual priced stations will not be sufficient. For one, the space the fields would take up on the boards, but if instead they were broken out almost like two stations with different color flags then the cash prices and the credit prices could float to their appropriate sort on the boards.
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kwzh
Champion Author San Jose

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Message Posted: Aug 12, 2013 12:50:16 AM

LarryMarg: It's a change in progress, which is why it's currently only visible in the "Edit Station" area -- this is very recent, and the code that could use the information has probably not yet been written.
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Gas_Buddy
Champion Author Maryland

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Message Posted: Aug 11, 2013 8:28:42 PM

citizen1:
"Is there anyway to add to the price reporting what it is for cash, credit or same for both?"

Yes. First, the cash price is what's supposed to be posted. You can indicate in the comments section if there's a different price for credit payment (or you can indicate in the comments section "same price cash/credit). Not knowing what options are on each and every mobile device, you can access the full website using your mobile device's browser to make comments.

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LarryMarg
Champion Author New York

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Message Posted: Aug 11, 2013 7:51:59 PM

I note that "Station Features" has a check-box for "Different Cash/Credit Pricing".

1. It would be nice if this were visible in more than just the "Edit Station" screen.

2. This is a 2-state field for a 3-state question. If it's unchecked, I don't know if the prices are the same, or if nobody has edited the station info since the check-box was added.
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citizen1
Champion Author Connecticut

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Message Posted: Aug 11, 2013 4:59:51 PM

Is there anyway to add to the price reporting what it is for cash, credit or same for both?
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CampKohler
Champion Author Sacramento

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Message Posted: Aug 9, 2013 3:19:36 PM

TX: That link applies to all CC use. I was asking about how the fueling industry managed to escape the bank rules before the court decision.
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TxJeans
Champion Author Tampa

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Message Posted: Aug 8, 2013 10:24:44 PM

And yet most stations are still single price mode, and even the Dollar Tree has started taking credit cards.

Again, it comes down to each business to determine the best model for them.
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scoutmaster
Champion Author Pittsburgh

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Message Posted: Aug 8, 2013 10:22:09 PM

Actually the swipe fees are a big deal. The next time you fill up, pump $5 then stop and do it again. See how long it takes the guy inside to turn the pump off. They get popped for every swipe and only pumping $5 almost eliminates all profit.
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TxJeans
Champion Author Tampa

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Message Posted: Aug 8, 2013 9:09:51 PM

Link
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CampKohler
Champion Author Sacramento

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Message Posted: Aug 8, 2013 6:46:11 PM

This suggestion has been added to the Suggestion Tracking List as a new topic on an existing subject.

If a customer who wanted to buy furniture or clothing had the option to pay less for cash or more for credit, the loss of CC sales would be huge; the CC industry would suffer greatly, especially for large purchases where the difference would be significant and in the customer's face.

The banks would LOVE for there to be a law eliminating dual pricing, as this would bring fueling in line with other businesses. Also it would give another no-brainer method for paying, so the stations wouldn't object at the loss of choice to the customers. By making everyone pay the CC rate, whether they use it or not, only the customer loses.

How the fueling business managed to escape the grip of the processors is a mystery to me. Perhaps someone who knows the history could enlighten us.


[Edited by: CampKohler at 8/8/2013 6:49:27 PM EST]
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TxJeans
Champion Author Tampa

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Message Posted: Aug 8, 2013 6:13:27 PM

Actually, the swipe fees are just one piece of the pricing picture. If it was as simple as charging the credit card (and often debits used at the pump) the swipe fee and discounting the cash that amount, all stations would be dual priced.

But, there are costs to handling cash as well - Folks wouldn't like standing in line at a big station to all pay inside by cash. So they MAY need more staff. And, there are those that drive big vehicles with big tanks (think RV, truck pulling camper, etc.) that are more likely to go elsewhere if they can get a decent price using the credit card with cash back. Mom's with small kids I am sure like the use of a card at the pump. So they may lose business.

When I look around in the states where I travel and see the dual priced stations, they seem to be the smaller places with one or two sets of pumps. Each business needs to look at their core business, their core set of customers and determine the model that works best for them.

That is why at this time it seems where I am that I can still beat the price of the CASH at many near-by stations - often even w/out factoring in my cash back.

If you are paying >$30 to fill your tank, you might not have the cash left to shop in that convenience store, or if you do, you might put less in your tank. With CC users you have those that abuse them and overspend in your store, or those that have the money but just not on them in cash and can use that card to fill the tank rather than put in a few bucks and might even do some "discretionary" or "impulse" buying.

Each station must determine the best model for them. All I am asking is that GasBuddy.com give us a durable flag so that we know which model they are using and can judge the posted prices based on that flag and what it might mean to us based on OUR purchasing model.
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scoutmaster
Champion Author Pittsburgh

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Message Posted: Aug 8, 2013 4:37:05 PM

Stations are not allowed to charge more for credit card purchases but are allowed to charge less for cash purchases. Major retailers do it every day! Macy's, Best Buy, Target, Wal*Mart, Sears, Fridays, Rock Bottom and many, many more charge one price regardless of payment method.

"Is that what you're saying? Or intended to say?"

Yup that is what I am saying.
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Gas_Buddy
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Message Posted: Aug 8, 2013 4:19:46 PM

"I know it's the same thing but that's the way the law is written."

The agreement between the credit card issuing companies and the gas stations (as well as some other businesses) have long allowed gas stations to charge a different price if payment was made by other than credit card. This is not something new, and it's something that has been discussed in various Gas Buddy threads for a number of years.

"Actually, single priced stations are making out better because the cash customer is paying for a transaction fee they are not incurring."

By that statement you're saying that the cash paying customer is either being overcharged or he's being cheated by the gas station because he's paying a charge that the credit card customer isn't paying. That is, while the credit card customer is "paying" a fee, the fee is being used to offset operating expenses whereas the cash paying customer is paying a fee to go into the pocket of the gas station. Sort of like you and me paying different prices for the identical car at the same dealership. Is that what you're saying? Or intended to say?
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scoutmaster
Champion Author Pittsburgh

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Message Posted: Aug 8, 2013 4:10:01 PM

The government is already involved, Gas_Buddy. Stations are not allowed to charge more to accept credit cards. But they can charge less to accept cash. I know it's the same thing but that's the way the law is written. Actually, single priced stations are making out better because the cash customer is paying for a transaction fee they are not incurring.
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Gas_Buddy
Champion Author Maryland

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Message Posted: Aug 8, 2013 2:48:47 PM

scoutmaster:
"Tweak the law that states charging more for credit card vs cash purchases is illegal."

You really want the law to get so involved in gas pricing that a business cannot offer a cash discount in order that the business doesn't have to incur an additional cost. Whether a gas station wants to pass on such a discount should be the decision of the gas station, not the government. Unless you're also suggesting that all gas stations charge the same mark-up per gallon (if they bought it at the same wholesale price) and that all cars and trucks should be sold at the same fixed price (i.e., no "dickering" or negotiation, just one price for everyone, no questions asked).

Sorry, but regardless of what I think about dual pricing or whatever you want to call it, I don't want "the law" to get that involved in how a business operates.
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scoutmaster
Champion Author Pittsburgh

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Message Posted: Aug 8, 2013 7:22:56 AM

How? Tweak the law that states charging more for credit card vs cash purchases is illegal.
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TxJeans
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Message Posted: Aug 8, 2013 7:11:50 AM

kwzh - You have that wrong. OF course I would prefer they would post both.

But, our "elected officials" can't seem to do their job. We have budgets and bills that need attention but they are too busy with pork and bills that are too long and filled with "quap" that doesn't belong in them. But, I also do not want our government to micro manage every part of the world around us. It is a slippery slope and we have to be careful about over-regulation.

Around here, it seems that the dual priced stations can't get their foot in the door and have not increased significantly. I suspect if they had to put more than the easily missed hang-tag on their signs, that the dual priced stations would have to discount their cash price more and raise their credit price higher to survive. As I have said before, I can BEAT the cash price easily with the cash back card, and I can usually MEET the CASH price at a dual priced station, which is why I would like to see a DURABLE FLAG.

I would prefer that they do the right thing without government interference. I do my part by not posting prices for dual priced stations. If I come across one that has both prices I put the credit in the comments.

As for any comments about socialism and/or crony capitalism, I prefer to hold that for political boards.

SM: That's the ticket! How do you propose we do that? I do my best by not doing business with them, but Gasbuddy.com doesn't control the pricing - only how we are able to enter the data.



[Edited by: TxJeans at 8/8/2013 7:15:13 AM EST]
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scoutmaster
Champion Author Pittsburgh

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Message Posted: Aug 8, 2013 5:11:17 AM

I think the answer is to eliminate dual priced stations.
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kwzh
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Message Posted: Aug 8, 2013 3:15:06 AM

On a slight digression -- TxJeans, it seems to bother you that dual-priced stations in most of the country are posting the cash price and not telling us the existence of, let alone the amount of, the credit surcharge; information that, if available, would be good for us consumers. But I infer from your disparaging use of "nanny state" that you'd rather allow the gas stations to mislead us than forbid them. Have I got that right?
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TxJeans
Champion Author Tampa

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Message Posted: Aug 7, 2013 7:27:27 PM

Scrapheap - You get it.

Gasbuddy started out as posting the cash price. I suspect they changed it to credit for a while because enough people using credit cards (or not) indicated that they would rather be surprised by a lower price than get there and find a higher price. It didn't work. It didn't work because most prices are posted from the BIG SIGN. So, they changed it back to CASH, ostensibly because members are here to get the lowest price, but in all practicality, it is because it is what is on the BIG SIGN most of the time when there is a DIFFERENCE.

You are also right that unless (and even then) the price fields are tied to the MSL and the double set only available if marked for the grade as a dual priced station n the MSL (which right now only indicates cash / credit and not by grade), we will still have problems due to lack of adequate price signage at the STREET BIG SIGN.

Therefore, regardless of the END solution, unless we have mandatory adequate price display, that durable flag will STILL serve a purpose.
Also, if the stations have to display that flag, then the consumer will better be able to make their choices of where they purchase gas. If dual priced stations find it improves their sales, and they can increase the spread between cash and credit they will. If they find that they get more cash paying but lose the bigger sales picture they will reduce the spread or return to single price mode.

But in the end, the DURABLE flag tied to MSL is what will help the MOST and takes less to implement on the front end than a full blown solution and if properly done would not interfere with a long term solution.

How about it Gas Buddy?? A durable flag?
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Scrapheap
Champion Author Virginia

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Message Posted: Aug 7, 2013 5:45:52 PM

Gas_Buddy wrote > So, for the sake of discussion, even if we assume that conscientious members will post a price differential comment, does anyone really think that if there are multiple ways to post a fuel grade price that there still won't be problems, that members won't post the price they see in whatever box they see first, regardless of whether its the cash/credit box or the cash/credit price?

I expect there will continue to be problems. People are posting prices according to what they see on the large sign. They will frequently be unable to know if that is a cash price, credit price or both. Additionally, some signs list a cash price for regular, a credit price for regular below it and a price for premium or diesel with no distinction below that. People will often post those 3 prices as regular, mid-grade and premium because they are not scrutinizing the sign as they pass by. They shouldn't be expected to pay such close attention to a gas sign.

This is a big reason why I am a proponent of the durable flag idea for cash only and dual priced stations regardless of how the issue is resolved. It acts as a buyer beware notification.

[Edited by: Scrapheap at 8/7/2013 5:46:50 PM EST]
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Gas_Buddy
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Message Posted: Aug 7, 2013 4:02:04 PM

Until such time as there are multiple prices for a grade of fuel, or until there are flags, etc., the issue is not "how do you want to pay" or "how do you pay", do issue is (or should be) "what do you, as the general membership, want posted, the lowest price available, or the most convenient price available?" If the answer is the lowest price, then the cash or cash/credit-same price is the one that should be posted. If the answer is to post the price that's the most convenient for the general membership (and not not necessarily the lowest price), the answer is likely to be the credit/debit price.

That said, Gas Buddy management has decided that the lowest price available to the general public will be the one that posted (until such time as they may change). So, for the sake of discussion, even if we assume that conscientious members will post a price differential comment, does anyone really think that if there are multiple ways to post a fuel grade price that there still won't be problems, that members won't post the price they see in whatever box they see first, regardless of whether its the cash/credit box or the cash/credit price?
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TxJeans
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Message Posted: Aug 7, 2013 8:02:31 AM

@ scoutmaster "Agree but since dual priced stations are in the minority, doesn't it makes sense to post the most common price? "

Yes, that is the sign on the board. It is both the cash and credit because the most common in most areas is single priced. So, the "common" price is the cash price listed on the STREET BOARD. And, except where there is a nanny government, it is rarely clearly posted that it is a CASH / Brand Card price, let alone the actual CREDIT PRICE as well as the CASH PRICE. It is very easy to miss the cash hang tag in FL - and it doesn't show up on GasBuddy.

THIS is why we need a DURABLE MARKER FLAG for dual priced and CASH only stations...TIED TO THE MSL!

Come on GasBuddy.com -- throw us a bone until you can figure the rest of the layout and tying of various prices/grades to the MSL!
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scoutmaster
Champion Author Pittsburgh

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Message Posted: Aug 7, 2013 7:55:50 AM

"Scoutmaster - the only reason it doesn't make sense to post the credit at this time is because, except in nanny states/cities/counties, most places do not require adequate sign requirements to post both prices."

Agree but since dual priced stations are in the minority, doesn't it makes sense to post the most common price?
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TxJeans
Champion Author Tampa

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Message Posted: Aug 7, 2013 7:35:17 AM

Scoutmaster - the only reason it doesn't make sense to post the credit at this time is because, except in nanny states/cities/counties, most places do not require adequate sign requirements to post both prices.

THAT is why we need a DURABLE FLAG/MARKER at a minimum.

It doesn't matter if there is 80% or 20% dual priced stations. The CASH price is often not the BEST price for the many that use cash back cards, nor for those that chose to use plastic to avoid carrying cash (which brings up another point - those that charge debits like cash - yellow flag and red flag?).

kwzh - I had to rush to a distant city for a family emergency. I live right by a on ramp and it is miles the WRONG direction to get gas locally. I hit the road and looked for gas as soon as I got across the water and there was a station listed as 10 cents cheaper at the next county line. Since county taxes vary, I chose to pass the first two stations north of the county line for the next station only to find that it was cash only price. I drove a bit out of my way (not far, justifiable for 10 cents) just to have lost time and money. There was not another station at that exit and I was CAUGHT by the misleading advertising.

IF GB had a DURABLE flag I would NOT have bothered. The DURABLE FLAG is less for those in their local micro environment, but for those that are traveling in the larger area or long distance.

Come on GasBuddy - give us the durable flag. It only takes a few of these stations to mess up a trip out of your home area - especially when returning a rental before rushing to the airport on a trip.

Oh - and for Gas_Buddy the member, a lot of BUSINESS folks use credit cards while on BUSINESS so that they don't have to use their own money for their company work and can pay it off before it is due with their expense check when they return home.

Oh, and kzwh - basing it on what dual priced stations users do when dual priced are not close to ubiquitous is also a statistical anomaly. If there are only 20% dual stations, the only ones routinely using them are the cash folks. But, if in increases, then those that use Credit will have to start using them if it means driving too far to find a non-dual priced.

The places where it matters the most about dual priced stations, is when they are not the normal mode of pricing. Once they reach 90% the credit card users are going to want to see a durable flag for single mode if there isn't one already designating dual mode.

[Edited by: TxJeans at 8/7/2013 7:40:11 AM EST]
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scoutmaster
Champion Author Pittsburgh

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Message Posted: Aug 7, 2013 5:10:35 AM

"No. If it's done by any majority at all, then it should be based on what the majority of dual-priced station customers do."

That would be a minority of the minority since there are roughly only 20% dual priced stations.
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kwzh
Champion Author San Jose

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Message Posted: Aug 6, 2013 11:58:44 PM

scoutmaster writes,
> shouldn't the price posted be what the majority do?

No. If it's done by any majority at all, then it should be based on what the majority of dual-priced station customers do. For people who are using single-priced stations, it doesn't matter whether the rule is cash or credit, because those two are indistinguishable; there's no reason to count their votes in either direction.
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TxJeans
Champion Author Tampa

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Message Posted: Aug 6, 2013 7:45:44 AM

Scout - the posting of credit only makes sense when tied to the MSL. As much as I would like to always know the CREDIT price when traveling asking to post the credit price when the cash price is on the big board that most post from doesn't make sense.

Adding fields for credit also doesn't make sense unless tied to the MSL and only appearing if so indicated. That is why I have called for a durable flag as an intermediary fix. One so you don't go driving off to a "good price" to find it is cash only.

That is why I 1) don't buy at a Dual Priced station, and 2) rarely post their prices.

I notice most of the folks that don't think this is a problem come from California. According to some of my friends in California, they have a higher % of dual priced stations than around me, but that virtually all of them post both prices and most have a 10 cent difference. They also indicated that most of the single mode stations are in the same range or price as the dual priced stations - or very close, which means the 5% cash card we carry will still do better than the cash price.

Again - we have to post what is on the MAIN billboard seen from the street.
We NEED a durable flag and/or fields tied to the MSL.

Even that will not solve all the problems unless you live in a state like CA. Even in FL where stations are supposed to post that they are cash/branded card, the sign indicating so is EASILY missed, and without a similar durable flag in GasBuddy, one may not know until they drive past much better price solutions for THEM.

And not everyone is like Gas_Buddy that carries enough cash for their daily needs AND enough to fill a tank at today's prices. Even though some use a CC because they don't have the cash (period - and hope to when the bill comes) many CC users have the cash already in their account and earmarked for the purchases they make on their cards.

[Edited by: TxJeans at 8/6/2013 7:48:27 AM EST]
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scoutmaster
Champion Author Pittsburgh

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Message Posted: Aug 6, 2013 6:38:34 AM

That is still in the minority of the total members on this site kwzh. I understand the want to post the cheapest price but if 80+% of the membership don't live where there are dual priced stations and 80+% pay via credit/debit card shouldn't the price posted be what the majority do?
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TxJeans
Champion Author Tampa

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Message Posted: Aug 6, 2013 12:08:46 AM

But kwzh - that analysis only works where you have places that have virtually NO dual price and places that have a majority of dual price.
Unless the dual price are the majority, there are too many other factors to skew the numbers.

In those places where there are a majority of dual price stations you probably see a bigger spread between cash and credit.

I would find it very unlikely that you would find 90% of the folks in my area paying by cash. We have dual priced stations, but they are <25% I would guess, and they are usually not significantly lower for cash than the single priced stations.

Now, if you look at just the dual priced stations, you will of course see more folks that pay cash frequenting those places, because those that don't pay by cash will likely go elsewhere for their gas, just as I avoid dual priced stations because I don't know what the credit price is, and can usually beat the dual priced cash price using my cash back at the station around the corner or next door.

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kwzh
Champion Author San Jose

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Message Posted: Aug 6, 2013 12:00:46 AM

Scoutmaster, what I said was,"when filtered by areas that actually HAVE dual-priced stations, indicate that most members pay with cash in that situation". In other words, considering only the subset of members that live in dual-pricing areas, most of THEM pay cash. In my example, 90% of them did.
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scoutmaster
Champion Author Pittsburgh

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Message Posted: Aug 5, 2013 9:42:14 PM

Gotta agree with just about everything you posted TxJeans! I pretty much do what you do.!!
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TxJeans
Champion Author Tampa

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Message Posted: Aug 5, 2013 9:20:06 PM

To clarify before GasBuddy comes back --

"I suspect the CC users are more likely to FILL their tank and many of the cash users are only putting in what they can afford - a few dollars at a time. It isn't hard to put in $50 at today's prices."

This isn't to say that all or even most CC users are filling the tank with money they don't have. Some are, but more that some folks that use cash only have a little cash at a time and never really top off but buy what they can with the cash they have on hand...
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TxJeans
Champion Author Tampa

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Message Posted: Aug 5, 2013 8:24:20 PM

Credit Payment:
Cheapest price around for me, including the "CASH" prices at the BPs, Exxons, etc.
Convenient - consolidated payment, no carrying lots of cash, no leaving my car to go inside, no temptations in the store.
I pay no CC fees
I pay no CC interest
I get 5 % cash back.
store attracts customers that like the convenience. Heck, even the DOLLAR TREE takes credit now.

Interesting comment from the article "In fact, if you charge more than $50 on a single fuel purchase transaction, MasterCard waives the interchange fee. So, technically if there’s no interchange fee being charged to gas stations, the consumers should pay the cash price. "

I suspect the CC users are more likely to FILL their tank and many of the cash users are only putting in what they can afford - a few dollars at a time. It isn't hard to put in $50 at today's prices.

The cash price around me is NOT the most competitive price - often not even if you exclude the the rebate.

NO I don't pay an annual fee.
YES, I do pay my bill in full each month with NO INTEREST so I get my rebate. It makes no sense to use a rebate card if you don't pay it in full each month.
I get 5 PERCENT, not 5 Cents off with my PenFed or Sallie Mae card.

I have yet to find a CASH price near me that beats my Credit Card price elsewhere (often the CC is less or equal the CASH price at the dual station before I even consider the CASH BACK REWARD.

How much it would take to get me to pay cash? Not sure, but it would take at least matching the Cash Back and that is before adding in location, cleanliness, convenience and safety.
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Gas_Buddy
Champion Author Maryland

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Message Posted: Aug 5, 2013 2:32:07 PM

As TxJeans said, wrong questions. Asking a simple "how would you rather pay..." or "would you rather pay by credit or cash..." especially without explaining your reasoning.

Credit payment is desired because (take your choice) you don't have to walk into the store; you don't have to wait in line for others to buy lottery tickets, cigarettes, search for their money, etc.; you might be tempted to buy something you don't want/need; you get a 5 to 15 percent rebate on all your purchases, you get frequent flyer miles or other rewards for your points.
Cash payment is desired because (take your choice) the gas station is able to sell you the product at the most competitive price available because the station doesn't have to include credit card fees in the price of gas; you don't have to pay monthly interest payments; you're not that concerned about frequent flyer miles or other credit card perks (generally because you know that the credit card company to to make money somewhere/somehow in order to give you something back, and still make a profit).

Maybe the question that should be asked should be along the lines of:
If you had a choice of paying cash or credit (regardless of your reason), what would be the price differential (between cash and credit) would it take for you to pay cash?

As an aside, it would be interesting to see the results of "Do you ever pay interest on a credit card balance" and "How much rebate do you get on gas purchases using your credit card".

To me, if a gas station is paying a percentage of the price at the pump (rather than a fixed transaction fee) the consumer is paying more than the gas station would otherwise charge to be as competitively low priced as possible.

For a different perspective, while the article was written little more than a year ago and there have been banking industry changes that may not be reflected in the story, you may find this interesting:
The cost of convenience
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TxJeans
Champion Author Tampa

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Message Posted: Aug 5, 2013 7:41:03 AM

Again - wrong questions and incomplete data to make that claim.

First, you have to consider in the 20% of the country that has dual pricing - what percent of the stations (and brands) have the dual pricing. You also have to consider the price spread.

The CHEAPEST available may not be the CASH price.

For instance, around me current pricing is about 3.40. There are a few stations a penny or two less that are dual priced, but for a penny or two, they are not worth the extra drive --- even w/out having a cash back or other discount card.

So, the question is multi-factoral and will never adequately be addressed under the current limitations of the polling.

Questions:
% of stations and brands in your area that are dual priced
% spread between the dual priced cash price and the fixed price at the non dual station.
% difference in price AT the dual priced station between cash and credit.
Do they post both prices at the curb.

In my area, I can usually meet or even beat the dual price stations CASH price at a non-dual station even before applying my credit cash back. BUT, I can't make that decision since I don't know when I will find a station with an out of the normal range spread.

In fact, I don't know today for sure what the spread is between cash and credit at most of the dual stations because I don't bother to drive in to check the price (NOR do I bother to report their price). Historically it has been 3-5 cents. At today's prices, hardly worth the risk or drive that it might be more.

There are many things that go into the choosing where to fill up.
Price is one
Convenience of location to path
Convenience of getting in and out
Cleanliness
Safety
Maybe even brand

kszh, in California, you see more of the both prices at the street than in many other areas of the country - for me, it isn't worth it to drive to a dual priced station unless it is 5% less than any other station.

That is why I have called for a durable flag for dual priced stations until they can figure out the rest of the coding.

Yes, there are some that will always go to the CASH even if it technically is not cheaper just because they don't have the money or don't / can't use a credit card in the same mode as they would use cash.



[Edited by: TxJeans at 8/5/2013 7:45:06 AM EST]
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scoutmaster
Champion Author Pittsburgh

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Message Posted: Aug 5, 2013 6:22:54 AM

kwzh,

What you posted doesn't support "Most members pay with cash". In fact, it supports just the opposite.

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kwzh
Champion Author San Jose

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Message Posted: Aug 5, 2013 12:20:15 AM

That's consistent with the claim. Suppose that 20% of the country has dual pricing, and 80% does not. Among the members in the 20% region, 90% pay with cash to take advantage of the discount, while 10% use credit. In the 80% region, 90% pay with credit and 10% with cash. Then the overall result would show 74% in favor of credit, when in fact it's 90% in favor of "cheapest available in this region".

(0.2)(0.9)+(0.8)(0.1) = 0.26
(0.2)(0.1)+(0.8)(0.9) = 0.74
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scoutmaster
Champion Author Pittsburgh

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Message Posted: Aug 4, 2013 7:27:08 PM

"Also, the mods have stated that the poll results, when filtered by areas that actually HAVE dual-priced stations, indicate that most members pay with cash in that situation."

I find this hard to believe when in a poll earlier this year only 20% claimed half to all the stations they passed had dual pricing.
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TxJeans
Champion Author Tampa

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Message Posted: Aug 4, 2013 1:50:03 PM

Gas_Buddy, you are starting to sound like a one-size fits all DR graduate...

It may be easy for you (being semi retired) but it isn't easy for ME to get cash frequently from the ATM.

First - I refuse to own a DEBIT card and only have a pure ATM. It does not cost me to get money from the ATM, other than time, and time is money. It is not convenient to me to do during daylight during the working week.

A PURE ATM and CREDIT works much better for me than the risk of a mistake with a DEBIT card used at retail locations.

I have never said anyone should NOT pay cash, or NOT use an ATM. I have said that it is not the right size fit for EVERYONE. And, for those that use a 5% cash back card like the Pentagon Federal one that Scrap and I have, using CASH is not always the least expensive gas price. In fact, I have only found it maybe so for about 1 or 2 days at one CITGO near me that dropped their CASH price ~20 cents less than the price leaders. Racetrack met their price for ONE of those few days without the "CASH" requirement. I didn't need gas or have reason to drive over that direction at the time, and it didn't last long.

But, I thought we had finally come to agreement that the REAL reason to post CASH is that is usually what is on the SIGN when there is a difference between CASH and CREDIT.

Again, until they figure this out, a durable flag for dual priced stations would be a reasonable compromise solution.

[Edited by: TxJeans at 8/4/2013 1:51:45 PM EST]
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