OT I thought I was using my credit card free.

[dpb]

...

Local stations may charge less for cash purchases than by credit card--you'll not see it except by observing individual station charges, not on the credit card side.

--

[Metspitzer]

I have a friend who just started driving a semi truck. He says that if you use a credit card for fuel, you pay 6 cents on the dollar more.

Is this true?

A little Googling shows there are fleet cards. I hope that is what he is talking about. I didn't find where a standard credit card cost any more at the pump.

[gpsman]

Yup.

"Prices listed are the lowest cash price. The cash price is a 6 cents/ gallon discount from the credit card price."

I think it was Flying J that first tried passing CC service fees on to the customer but that was declared "illegal", so they just swapped to a discount for cash.

Bigger trucking companies that buy a lot of fuel negotiate discounts, sometimes based on a graduated usage scale.

I once drove for a small company that only had 6 "authorized" fuel providers, coast to coast. If you fueled elsewhere, that was -your- fuel. That'll challenge your trip planning abilities. -----

- gpsman

[hrhofmann]

Look on the roadside signs along the interstates, they will usually show one price for diesel, and one different lower price for diesel- cash.

[Metspitzer]

Wouldn't they have to change pumps to pump less fuel for credit purchases? The price per gallon is posted on the pumps.

It would either have to be that or charge you more than you pumped on your credit card statement.

[JoeSpareBedroom]

Your friend has seen things which you haven't. If the price is different for credit than for cash, there'll be a sign somewhere. If you pay with a credit card at the pump, it'll be a higher price. If you pay with cash, they'll push a button before pumping begins and the price at the pump will be displayed differently. Of the 5-6 brands I can buy around here (Rochester NY), I see just two whose pricing varies this way.

[Hilary]

Umm, no. Doesn't work that way. If you pay at the pump ( can only do that with cards ) you pay the "posted" price. Cash customers have to schlep into the store to pay, have to pay first, and since they are paying cash, the discount is taken directly at the pump, which is controlled by the drone at the counter. Also, it violates all credit card merchant agreements to charge more for credit transactions than cash. However, you can give a cash discount without violating that rule.

[JimT]

When I was back east a few stations did. "Credit" and "Cash" pumps.

Jim

[Robert Neville]

The few stations I've seen that do this ring a charge for the full amount and then give you the discount.

[Percival P. Cassidy]

I have always understood that it is a violation of the merchant's agreement with the card issuer (at least with MC and Visa) to add a surcharge for using a card. OTOH, it seems not to be a violation of that agreement to give a discount for cash.

I don't think I've been charged more for using a card to buy gasoline in the last 20 years -- nor even been offered a discount for cash. For the last several years we've been buying gas at our regional supermarket chain's stations, where we get 5c/gal. *off* for using their card.

Perce

[HeyBub]

That all changed this week when a federal court allowed merchants to charge different amounts even for different cards! For example, not all Visa cards are the same. Those with magnificent rewards programs charge the merchant more.

Now the merchant will be allowed to charge differently not only on cash vs card, but card vs card.

[aemeijers]

Good. Maybe the merchants will get pissed off enough to stop taking plastic, and the rest of us won't have to wait in line behind people charging a five-dollar breakfast. IMHO, for in-person sales, CC should have at least a 20-buck minimum.

[Robert Neville]

Well yes, but not exactly. Discounts for cash have been allowed for some time, but few merchants beyond the odd gas station ever implemented it.

The recently passed Financial Reform Act made merchant agreement provisions against credit card surcharges and minimum charge amounts legal.

The recent settlement between the US Government and Mastercard and Visa made the merchant agreement provisions that prohibited surcharges for reward cards null (and prevented merchants from refusing specific card types) and also limit the amount credit card companies can charge merchants.

Amex is still fighting the government, claiming their market share is small enough that they aren't restraining trade by using those rules.

[Hilary]

Bleah. Wake up and smell the 90s. As a merchant, I say, bring on credit cards. Cash is fine, for in-person sales, of which I get about

4 per year, but credit cards rule. Checks can bounce, and nearly always do, but you can run the credit card charges before you mail the stuff, so since you haven't let the merchandise go yet, you don't get ripped off. Credit cards rule, even with the fees. I don't even start the order (custom made stuff) until the credit card clears. You're either unemployed or crazy.

[Hilary]

And don't forget the 5% cash back you get for every purchase. Cash? Yeah, not so much. I get about $750 a year simply for charging everything on my Visa, and since I pay it off every month, it costs me nada. And I make less than $10k per year. That $750 is a significant source of income. Ok, so I only get that much back because my HUGE business expenses and ALL personal expenses are on that card, but still. Not exactly rocket science. Cash? Only losers use it.

[Percival P. Cassidy]

Most stores in Australia had a $10 minimum for plastic 30 years ago.

Our local Lowe's for long time had crappy card readers in which every one of my cards had to be swiped many times before it was read successfully (no such trouble at other stores), so that held things up; but it's checks that I'm waiting for merchants to stop accepting: payment by check takes for ever, and stores seem no longer to have those check-printing cash registers that printed store name, date and amount, leaving the customer with nothing to do but sign.

Perce

[Dean Hoffman]

What's worse is the little old ladies who dig in their purses for exact change.

[clare]

The card I use for gas I pay $0.02 a liter (darn close to a dime per gallon) less when I buy gas at their station using their card.

Needless to say, all my gas goes on the card and I plan my refueling to be able to buy from their station.

If I bought everything using their card I could get up to $0.10 a liter (darn close to half a buck per gallon) off - but I don't buy a LOT of gas, so for other than gas purchases I have another card that makes more sense (and more cents)

[clare]

Technically it is the same thing and also against the contract with the card provider. Giving "bonus bucks" redeamable for merchandise with cash sales is not contrary to the contract - go figure.

[clare]

and the cashier doesn't stant there for five minutes scratching their head trying to figure out the change when the customer says "oh, I have the 2 cents here" after the sale of $27.97 is rung in and a fifty has been given in payment.