10 cents cheaper if you pay cash for gas....do they do this elsewhere?

Question

I went on a trip today and bought gas in Fresno. The place we stopped at charged $3.11 if we paid cash and $3.21 if we paid by charge. I am from a small town, I have never seen that before!! Do they do it elsewhere? What would the benefit be to the shopowner?

Yes, Fresno, CA.

Peach and Kings Canyon @ the Bizzy Bee

Answer 1

I haven't seen it here but it does make (pardon the pun) cents!
Walmart discounts your gas 3 cents if you pay with one of their shopping cards or a Walmart credit card. The benefit to the shopowner is that he/she doesn't have to pay a transaction fee to the credit card processing company if the gas in paid for with cash.

Answer 2

Actually I think every place does it (at least in metropolitan areas) unless there is specifically a sign that says "Same Price Cash or Credit." It's because all businesses are charged a fee by the credit card company each time that card is used to make a purchase. Some businesses, like gas stations, are not lucrative enough to be able to bear that cost so they try to discourage the use of credit cards.

Answer 3

Is this Fresno, CA? No matter. I'm from Texas and I have seen some gas stations offering discounts for customers paying with cash. The shop owner benefits because they must pay to use credit card machines for transactions.

Answer 4

The reason is the credit card fees, with gas so high it is harder and harder for the smaller convenience store owners to make a living. The profit is not there, only the large oil companies and producers are making money, not so much for the little stores where you buy the gas.

Answer 5

i am from plentywood,mt.,a town of about 1500 people in way ne mt.every where around here,within 500 miles at least,gas is 5-10 cents cheeper if you pay in cash.the benefit in paying cash is that they dont have to spend time messing with the credit cards.around here money talks,you know the rest.

Answer 6

I've seen it elsewhere, at Mavericks in Utah. But it was never for a 10 cent price difference. That's cool. Well a benefit might be more people would go there and buy it (more customers and more profit).

Answer 7

I'd be skeptical also, but as a business owner myself, there is a 6% surcharge for accepting payment from credit cards in the state we live in, plus the fee for the equipment and, let's not forget tax. The bottom line is, they get charged to accept charges

Answer 8

i've never heard of this and i have friends from fresno. regardless, when you pay by debit or credit, the owner of that store has to pay to provide that service to you-the customer. it runs on a telephone line so essentially it is similar to paying a phone bill. maybe they are trying to encourage using cash so they dont have to pay as much for allowing you to use credit.

Answer 9

Yeah, they do it in Greenville, SC at this one gas station. I've never seen it anywhere else though. I can't figure out why they would do that, except maybe they avoid credit card charges that way. Crazy.

Answer 10

I'm in Tennesse and have never heard of this, I have heard of the 3 cents off at Wal-Mart. I'm upset because ours is around $2.78 a gallon.