is it legal to charged more per gallon at a Sacramento CA gas station for paying with credit instead cash?

Question

I went to a gas station and was charged $.05 more per gallon beacuse I did not pay with cash. The sign posting this information is small, hard to read, and very easily missed. I do have pictures to confirm what happened.

Answer 1

Yes it is legal as long as it is posted. Even small print counts.

Sorry.

Answer 2

Yes, because you are paying more for gas when you charge. Credit card companies charge the gas stations around 3% per $1 charged plus some other fees. That money the credit card companies are charging the gas stations are being passed on by the gas station on to you. Every business that you can use a credit card has to either absorb the fees or pass the cost on to you.

Answer 3

Yes.
When you pay with credit, the gas station actually gets charged a fee for that transaction. They are getting back what they lose in order to use credit. Most businesses just take the loss as part of doing business. If you use cash, they do notincur the charge, thus they can charge you less. With the small amount gas stations make on selling gas ( they make almost no profit. Profit comes what what they sell inside), I could easily see how these transaction fees could wipe out the profit from gas.

Answer 4

They don't. It's not a charge for using a credit card, it's a discount for using cash. It costs the station to collect using plastic, but the credit card companies are powerful enough to make it illegal to charge a surcharge for accepting a card. To get around that, many stations give a 'discount' for cash instead. Other stations just accept it as a cost of doing business, and charge the same price either way.

Answer 5

Yup, It is legal. Any posting that gives a disclaimer for additional charges makes it legal. As other people have mentioned, it is most likely merchant fees that are passed on. It is unfortunate that they aren't absorbing it, but in Sacramento the drive off rate (where people pump gas and then leave without paying) is astronomical. That fact alone drives up the cost for each station.

Not that it makes you feel any better, but the profit margin on gasoline is really low.

My suggestion is to use the ATM, that way any charges are clearly posted to your account and you aren't paying any additional in interest.

Answer 6

The gas stations always use to charge more if you paid with a credit card instead of cash. I have noticed it in New Jersey when we were there this summer. If it's posted then there is nothing you can do.

Answer 7

Merchanst are charged fees for credit transactions. Some absorb the cost and some do not. The station you are talking about obviously would rather not absorb the cost and so passes it along to the consumer. The choice than is yours whether to use the credit card or not. It is perfectly legal.

Answer 8

Some businesses pass the cost of operations to the customer and it is legal. At Carl's Jr people are charged about 25 cents for using an ATM or debit card.

Answer 9

Merchants who accept credit cards are usually prohibited (by the credit card company and by law in certain states) from charging a fee when customers use that credit card. They can, however, offer a discount for those who pay cash. So, it depends on how the sign was worded.

Answer 10

It may be unethical, but it can't be considered illegal per se when a sign is posted. If the sign is not clearly posted, which sounds like your situation, then a case could be made. It does, however, violate the contract that the vendor holds with the card company. The same violation occurs when a vendor forces you to spend at least $5 in order to use your card.

Answer 11

This is common, because of the charge the gas station pays to allow you to use your card.