Have you ever been to a gas station that advertises two different prices per gallon of gas? One price for cash purchases (listed in larger numbers and in a more eye catching place, of course!) and another, slightly higher price, for credit card purchases?
Is it legal to charge more for gas to people who pay using their credit card?
Sal Risalvato, the executive director of the New Jersey Gasoline C-Store Automotive Association in Springfield, is quoted in an article posted on DailyRecord.com, “they are not charging for credit. They are giving a discount for cash.”
The discount for paying with cash may only be a couple cents per gallon over paying with your credit card, but it’s becoming almost a necessity for gas stations to try and encourage more cash sales. Gas stations average a profit of about 10 cents per gallon. The fee the retailers pay for credit or debit card payments is 3% of the total sale. If you purchase 15 gallons of gas at $3 per gallon with a credit card, the profit for the gas station is about $1.50 - until they pay the credit/debit card fee of $1.35. Suddenly, their profit is all of 15 cents on your gas purchase!
Is it legal to charge more for gas to people who pay using their credit card?
Sal Risalvato, the executive director of the New Jersey Gasoline C-Store Automotive Association in Springfield, is quoted in an article posted on DailyRecord.com, “they are not charging for credit. They are giving a discount for cash.”
The discount for paying with cash may only be a couple cents per gallon over paying with your credit card, but it’s becoming almost a necessity for gas stations to try and encourage more cash sales. Gas stations average a profit of about 10 cents per gallon. The fee the retailers pay for credit or debit card payments is 3% of the total sale. If you purchase 15 gallons of gas at $3 per gallon with a credit card, the profit for the gas station is about $1.50 - until they pay the credit/debit card fee of $1.35. Suddenly, their profit is all of 15 cents on your gas purchase!
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