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T.O.P.
Hong Kong4685 Posts
It costs less to sell gasoline when customers pay in cash. I don't see what's the problem with gas stations passing on the savings to the customer.
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United States24745 Posts
On September 06 2011 05:08 T.O.P. wrote:
It costs less to sell gasoline when customers pay in cash. I don't see what's the problem with gas stations passing on the savings to the customer.
If gas stations do this then other retailers may as well do it too. What you get is a system where prices are a little bit lower, and everyone pays in cash with no bonus clubs! Not sure if I like encouraging a system where everyone carries around cash and checkbooks for everything...
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thedeadhaji
39489 Posts
I've seen it once in California.
Definitely not going to pay cash at a gas station.
I'm happy to pay cash at a mom and pop style diner / cafe though. (even though I understand that most gas stations are operated by small time franchisees, I don't feel the same karma factor for these business owners)
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thedeadhaji
39489 Posts
On September 06 2011 05:10 micronesia wrote:Show nested quote +On September 06 2011 05:08 T.O.P. wrote:
It costs less to sell gasoline when customers pay in cash. I don't see what's the problem with gas stations passing on the savings to the customer. If gas stations do this then other retailers may as well do it too. What you get is a system where prices are a little bit lower, and everyone pays in cash with no bonus clubs! Not sure if I like encouraging a system where everyone carries around cash and checkbooks for everything...
Don't worry it'll probably be replaced with eWallets in the near future at this rate. (if CC companies and Debit Card issuers pass the costs down to consumers, the rate of eWallet adoption will just become that much higher)
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The practice is legal for gas stations to charge slightly more by paying with credit card because of the fees imposed by the credit card companies. The profit margin for gas in the stations is very low, and coupled with the fact that the stations need to attract customers that pay with credit cards, this is the result. That's why I tell my friends to pay with cash, and not use a card for gas.
I think this practice will not change at all, simply because the stations need to be profitable, as the trend to pay with cards has increased over the last few years.
P.S. The alternative would be the practice of requiring a minimum purchase from the stores to ensure that the transaction fee from the credit cards do not eat up their profit; this is a common practice.
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Yeah I think the real problem is the credit card companies. I'm in Jersey myself and there are quite a few places around me who charge the extra .10 for credit cards. I personally agree with you and have avoided places that charge more for credit cards (especially since much of my gas is purchased via credit anyway).
As long as it's not every gas station, I really don't mind. And in the case where I'm really stuck, I don't mind eating the extra .10, at most I'd be paying an extra $1.40 filling my tank from E, and with gas prices as high as they are, that $1.40 becomes pretty unnoticeable
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You've definitely assured I'll look twice when I fill up tomorrow. Thanks.
This seems like some bullshit to put it lightly -_-
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Just want to make a note that 2% is a bit deceiving. Most retailers go through CC processing intermediaries, which adds another layer of charges above what VISA, MasterCard and such charges, based on the volume of business. Gas stations may run at a different rate, but I have seen surcharges at 3% or higher (including various monthly fees and etc).
Those money adds up, especially when you think about the bare margins that gas stations work, especially at this economy. CC processors always sells their service as "increase your traffic flow," which frankly is deceptive.
I personally always prefer to pay cash when it's discounted, and consider it savings for having the foresight to bring a little pocket money.
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I don't really think that this a big deal. It would help discourage people from using credit cards for everything, which I believe is a good think overall.
For the record, I mostly pay with cash or my debit card if the station is closed.
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Katowice25012 Posts
I've never seen it in gas stations but in Madison its incredibly common for small locally run businesses to do things like that (mostly small bars/restaurants).
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5 dollars for a gallon of gas?
Jesus christ is it that bad already? I pay like 3.30. Granted its Texas but 1.70 more per gallon is huge.
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United States24745 Posts
On September 06 2011 05:35 Shadowsleep wrote:
I don't really think that this a big deal. It would help discourage people from using credit cards for everything, which I believe is a good think overall.
For the record, I mostly pay with cash or my debit card if the station is closed.
I don't think it's necessarily good for people to stop using credit cards. For example, I don't use credit cards to borrow money I don't currently have... I just use them as an alternative to carrying around tons of cash all the time (and get bonus points too because why not).
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I was under the impression that business were actually not legally allowed to do this. Particularly with bigger name credit companies they usually want to have a contract where the retailer is unable to adjust the price based on the consumers payment option. A lot of smaller stores and local businesses get away with it for the simple fact that it's not worth the credit companies time to pursue a lawsuit.
Gas companies are one of the few industries large enough to actually bully the credit companies into allowing adjusted prices, so it may be that they're starting to win some ground, legally speaking.
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Interesting, time to pay attention. Also, where the hell do you live to have $5/gallon gas?
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United States24745 Posts
Sorry I screwed up I meant 3.89 and 3.99 lol. I get 93 octane usually which is more so that's why the 4 popped into my head.
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To me it doesn't make a lot of sense because running a cash business is full of risk of losing that money through theft (mostly from employees) and poor cashiers mistakes, as well as high on administration which is also a cost to the business AND banks charge businesses for depositing large amounts of cash because they have to count it and deal with it.
Maybe they just think they can get away with it because most people don't carry cash around with them and are lazy and it seems plausable.
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On September 06 2011 05:47 micronesia wrote:Show nested quote +On September 06 2011 05:35 Shadowsleep wrote:
I don't really think that this a big deal. It would help discourage people from using credit cards for everything, which I believe is a good think overall.
For the record, I mostly pay with cash or my debit card if the station is closed. I don't think it's necessarily good for people to stop using credit cards. For example, I don't use credit cards to borrow money I don't currently have... I just use them as an alternative to carrying around tons of cash all the time (and get bonus points too because why not).
I agree that credit card can be a useful way to pay as long as they are used correctly. I just think that this would make people stop and think about some of their purchases. A large amount of people misuse them and end up with large charges that they won't be able to pay off in a timely fashion.
If your an good credit card user, I agree that the extra charge to use your card to get gas would suck.
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Just think about how people in the Netherlands pay roughly € 1.60 (€1.00 = $1.40) for a liter (3,78 liter = 1 gallon) and those 10 cents just disappear x)
It doesn't sound too ridiculous though in the current economic state to charge more to cover creditcard costs
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I didn't know they were blatantly doing this. I guess now since I'm at college and all I just bike around so it isn't a huge concern of mine.
I have a friend who's family owns a kind of big gas station/store kind of thing that is kind big in the area for truckers and people living out in the country. I don't know if their posted prices are their credit or cash prices, but I'm pretty sure it's their credit because one day he told me that if you come in and pay in cash they give you a 10% discount because of how little money they make when you use a credit card.
As you said, I think it probably boils down to the credit card companies charging too much so the gas stations are left with almost nothing from sales on gas, which is probably were the majority of their sales are. However, it's still wrong ti post your cash price on a huge sign outside when that isn't the price you'll pay. They should tell you at the point how much the cost is with credit vs cash if that differs.
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EPT
