Some weeks ago, I posted a blog (Apparently, Fear is a Factor...) where among other occurrences, I noted that my favorite local gas station recently began charging a higher price for credit card purchases of petrol. If I were working PR for the gas station, I'd make the claim: "We Offer Discounts on Cash Purchases!!" But since I don't, I can't help but feel like I'm getting the short-end of the pump.
Recently, I've increasingly found gas stations whacking their credit card customers but not yet often enough to consider it quite commonplace. Because it hasn't been consistent among local gas stations, the obvious reasons for the bump in price didn't jump right out at me. However, when I recently read an article about gas stations that are beginning to accept cash-only, I became curious enough to do a little online research. Clarity ensued...
Most credit card companies apparently charge about 2% as transaction fees to the gas station. Since I was paying about 8 - 10 cents extra to use my credit card, the gas station had basically made the decision to pass the transaction fees onto me (though I believe they are still making a profit on the fee as well as the gas...).
While this explains the difference in price between cash and credit, it does not explain why this gas station, even with the inflated credit card price, still offers a lower price than basically every other gas station I could find anywhere near my house. But since this works out in my favor, I won't be losing any sleep trying to figure it out.
Today, I will appropriately leave you this classic video from 3rd Bass - The Gas Face.
"Perkin his brim to the rim of my cup
Don't tempt me, you're empty, so fill'er up!
Is I'm talkin coffee or cocoa, is you loco?
Cash or credit for unleaded at Sunoco..."
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