Something I noticed driving by a number of convenience stores was there is now a discount for paying cash for gas. When credit cards began their proliferation in the eighties, there was an extra credit card fee attached to purchases made with a card, then at some point later there was a discount for users who applied for and used their retail gas cards, with the cash price being more expensive. Now we're back to lower cash prices. Is this only happening in Houston ?
R.J. Schneider, post: 354694, member: 409 wrote: Something I noticed driving by a number of convenience stores was there is now a discount for paying cash for gas. When credit cards began their proliferation in the eighties, there was an extra credit card fee attached to purchases made with a card, then at some point later there was a discount for users who applied for and used their retail gas cards, with the cash price being more expensive. Now we're back to lower cash prices. Is this only happening in Houston ?
I have seen as much as $0.15 per gallon difference.
Here a large number of supermarkets have an attached filling station.
They offer a discount with purchase - usually around 10 cents per litre.
The fuel companies have followed suit and now also offer a similar discount - usually tied to a particular supermarket brand receipts
There have been stations discounting for cash here in the NW since I started driving the the late 90's.
It's been common around here for a long time also....probably since the 90s I would say.
A number of places have the discount for cash thing. That's great for me as I don't own a credit card.
Maybe I should have stated that the number of gas stations offering a lower price for credit purchases appears to have declined noticeably.
It's mainly the small mom and pop stores that have it around here. Usually about $0.05 cheaper per gallon.
A lot of places here do that, usually only one to three cents per gallon.
None do that around our areas, but when I travel downstate I get screwed as there are lots along the expressway that will have a price on their sign that is the 'cash price' which you have to go into the station to pay. Paying at the pump is always $0.05-$0.10 more expensive then the cash price, that is advertised on the sign. Seems like false advertising to me - and always pisses me off as soon as I see the pump.
10 cents cheaper at Safeway.
The only downside is having to wait behind the guy making a $2.67 purchase with plastic then when getting change waiting behind 4 people getting 3 item with plastic.
Paying at the machine at Arco helps, I try to undershoot so I don't have change.
I've been getting my gas at Costco lately. About 20 cents a gallon cheaper. Line up moves pretty quick.
Dave Karoly, post: 354792, member: 94 wrote: The only downside is having to wait behind the guy making a $2.67 purchase with plastic
I am definitely that guy. Never carry cash anymore.
It used to be cheaper for cash just about everywhere around where I live. But I don't really see that any more. Not saying there aren't places like that, though, I guess I just don't see them. What I do see is the surcharge for using an ATM/debit card to pay for gas, especially at the "discount" gas places. When I drove my pickup everyday (with a 23 gallon tank) paying 35 cents extra on a fill-up (usually about 20 gallons) worked out to less than 2 cents per gallon, which was still cheaper than the next higher price for gas. When I started driving my car (13 gallon tank) a fill-up of about 10 gallons essentially doubled that per gallon extra cost. Still, it is usually cheaper than the next higher price for gas. My new (well, new to me, it is 8 years old now) car has a 16 gallon tank and so I'm still okay with the 35 cent surcharge when I fill up. But it is the thing I keep in mind.
What I really wish we still had was a full service island for gas. When I was a kid, my grandfather managed a 76 station and there was the full service island and the self service island. And there was a price difference for that. That's where I learned how to clean a windshield and operate a cash register! I have many fond memories of that station when I was young. It has been converted to a convenience store now. I've gone in there a couple of times and stood by the soda coolers and imagine the service bays there with a couple of cars up on the racks, my uncles changing tires or doing an oil change or whatever. Things change...
R.J. Schneider, post: 354694, member: 409 wrote: Something I noticed driving by a number of convenience stores was there is now a discount for paying cash for gas. When credit cards began their proliferation in the eighties, there was an extra credit card fee attached to purchases made with a card, then at some point later there was a discount for users who applied for and used their retail gas cards, with the cash price being more expensive. Now we're back to lower cash prices. Is this only happening in Houston ?
Happening many places around here as well. I think that when the trend was to offer discounts for those using credit, it was for those using the credit card offered by the gasoline company itself as they made a profit on the interest of unpaid balances. Now that most are using some form of Visa, MC, or other general purpose credit card, the gas companies are not making any money on the interest of those credit purchases, so there is nothing to offset the credit card company transaction fee paid by the merchant, thus the current trend for cash discount.
Thank you Evan, that seems to make sense.
I buy most of my gas at Sam's Club where you must pay with a card. By using their card, I get a $0.05 per gallon rebate. Plus there is no temptation to buy any of the higher priced impulse items found in convenience stores.
It does help that Sam's is only one mile from my home/office.
Steve Gilbert, post: 355531, member: 111 wrote: I buy most of my gas at Sam's Club where you must pay with a card. By using their card, I get a $0.05 per gallon rebate. Plus there is no temptation to buy any of the higher priced impulse items found in convenience stores.
It does help that Sam's is only one mile from my home/office.
Yeah, I don't get that impulse to buy because I "pay at the pump" so I don't see those things! It's pretty much the only way I can keep from buying a candy bar.
I believe quite some time ago, when credit cards were starting to be used regularly, merchants had to start taking them in order to be competitive, but it cost them money. So to make up for it, they tried to charge a surcharge. I believe American Express included it in their agreement that they couldn't charge a surcharge. So the merchants raised their price (of gas for instance) and offered a discount for cash. (Not positive on all of this).
Around here Kroger owns a chain of gas companies and a bunch of supermarkets and they offer a discount if you have their discount card (but that's not related to the credit card).
I have not seen a surcharge on my credit card in years (nor a discount if I had chose to pay cash).
Regular was $1.599 Friday afternoon at Valero in Hughes Springs........
