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One Sweet World Donating Member (323 posts) Send PM | Profile | Ignore Wed May-09-07 08:39 AM
Original message
Gas prices spark a war of words
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2007/05/09/BUGJUPNAED1.DTL

With pump prices at sky-high levels, is it OK for gas stations to offer two different rates -- one for people who pay with credit cards and another, lower rate for people who pay with cash?

Gas stations say they're entitled to offer a "cash price" and a "credit price." The credit card industry says the two rates are perfectly fine, but it opposes the stations' terminology, preferring more ambiguous language.

The dispute may be entirely semantic, but the stakes for all concerned are high. And it may take a judge to decide who's right.

At the heart of the matter are transaction fees of up to 3 percent levied on gas stations for customers to use plastic at the pump. With such fees cutting into already thin profit margins, some station operators are offering discounts to customers who pay in cash.


We need to get Pelosi's attention. I would use cash to pay for cheaper gas.

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Donnachaidh Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-09-07 08:41 AM
Response to Original message
1. is this happening nationwide?
I don't see this in my area.
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OlderButWiser Donating Member (389 posts) Send PM | Profile | Ignore Wed May-09-07 08:50 AM
Response to Original message
2. I suspect
that you won't get a discount for paying with cash just that they will charge credit card users more. It will only seem like a discount.
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ramapo Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-09-07 08:53 AM
Response to Original message
3. Been there
We had the two-price scenario some years ago here in NJ. It was pretty annoying and it eventually went away.
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One Sweet World Donating Member (323 posts) Send PM | Profile | Ignore Wed May-09-07 09:01 AM
Response to Reply #3
5. a discount
would certainly work for me. Californians should at least be given the chance to try the two price system.
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Gold Metal Flake Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-09-07 09:00 AM
Response to Original message
4. Card companies charge a fee to the retailer for credit card use.
Just like PayPal takes a cut when someone sends you money. Works the same way at department stores and other retail outlets. This has been going on since the credit card industry started.

I have seen separate prices for cash and credit purchases for gas for years in many western states. It's not a new thing. The new thing seems to be that the credit card industry is getting shy. Guilty consciences, perhaps.
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sabbat hunter Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-09-07 09:33 AM
Response to Reply #4
6. i get 5% discounts
for using a particular CC on gas purchases
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Gold Metal Flake Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-09-07 10:05 AM
Response to Reply #6
7. You are not the retailer.
End-user promotions have nothing to do with my post, which refers to the cost of CCs to the retailer. Most folks don't know about such charges. Some retailers just spread the cost to all users, some offer a choice.

However, as a end-user promotion that's a sweet deal. Which card?
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sabbat hunter Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-09-07 10:18 AM
Response to Reply #7
8. AAA visa card
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haele Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-09-07 10:27 AM
Response to Original message
9. Some Arcos and "smaller gas stations" (Golden State, etc) have two prices
In Southern California, it's fairly common for franchise owners and off brand stations such as Golden State or Valero to provide several different prices to draw in specialty customers; self-serve/full service (with fluid check and window cleaning).
Usually if you pay with cash, you'll get about 5 cents to, on occasion, 10 cents less a gallon - which usually enough of a discount to go out of your way to find one and pay cash even in those stations where one pays a 35 to 50 cent fee to use a debt card as "cash".

At (your city here)GasPrices.com - where I go looking before I find my gas station for the week - it is suggested that posters identify if they are posting cash only prices, or if there's a "club card/membership" required to get the price - such as stations at Costco or the military bases.

Haele
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