Some Save at the Pump

[dollardaze]

Gas station owners are struggling to overcome credit card and debit card fees. With gas prices surging into ever higher prices, more and more Americans are using their credit cards to pay for gasoline, simply because they cannot afford to pay cash any longer.

When credit or debit cards are used, there are fees that are charged to the gas station owners, and the more cards are used, the more those fees add up.
It seems that gas station owners should be making more and more profit as the price of gas rises, but in reality they say, they are making only a few cents profit per gallon sold.

Stations are beginning to offer incentives for those people willing to purchase their gasoline with cash. One station is offering a free fountain drink or coffee with the purchase of 10 gallons or more of gasoline.

Some gas station owners are offering a discount of a few cents off the price of gas to cash customers, though those owners say that there are days when they don't make a profit at all.

A rally of station owners held up signs at one location with messages pleading with Congress to stop the hidden credit card fees on gasoline.

A spokesperson for a major credit card states that gas station owners are paying higher credit card fees because of the higher price of oil, even though some credit card companies have tried to lower those fees at the pump. The fees, the spokesperson said, are just one little part in the chain of the pricing of gasoline.

Someone from the banking industry says that the benefits to the station owners justify the fees charged, and that those card transactions get the public in and out of the stations faster, and eliminated the need for more cashiers to take care of cash customers.

Those stations that sell only gasoline are being hit the hardest, says one owner, because they can't make up losses from those fees by charging more for things like the coffee, milk, bread and other things offered at other stations. Many of these stations have begun to only accept cash for gasoline purchases.

[pennypinch]

I don't blame the gas station owners for trying to relieve some of their fees by offering incentives. I think most owners are being hit by the high cost of fuel just like we are. I also understand how some are having no choice but to put their gas on credit cards. I worry though about how will they be able to make their credit card payments. These fuel prices aren't going anywhere, they are going to be in the same boat later on as they are now.

I cannot agree with whomever said that the gas stations actually benefit from all of the credit card use. This person said they save by having to pay less employees because credit cards are faster than paying cash? I pay cash and use credit frequently. Sometimes these credit card machines can be extremely slow in approving a persons card. I don't think they are any faster, I think they are slower most of the time.

[moneysense]

I think it takes more time for the processing of credit cards when paying for gas than just paying cash. Plus, using credit cards for gas and then paying the minimum payment on the credit card each month is eventually going to get credit card users in more problems than its worth to use them.

I always pay cash for gasoline and refuse to use credit cards because in the long run if larger payments arent made, you end up paying more for purchases in the long run.