CNN article says paying gas with a CC will cost 10 cents more!!

[FretlessMayhem]

http://www.cnn.com/2008/LIVING/personal/07/22/cash.vs.credit/index.html

I don't like the sound of this one bit considering I just got a Discover card so I can make 5 percent back on gas.

10 cents extra a gallon for my 16 gallon car is an extra $1.60 in theory. It costs me about $70 to fill up, so 5 percent of that is $3.50, so hopefully it can still technically work out in my favor.

Has anyone else heard of this?

ETA: At least the article seems to have their wording correct that the prices are discounted for cash.

Message Edited by FretlessMayhem on 07-22-2008 10:50 AM

[Anonymous]

They are all ready doing that in my area. It's 4.01 w/ cash and debit and 4.09 to use a credit card. All of the Spinx do it in my area and if I'm not mistaking so does the new BP behind my house.

[Anonymous]

Upstate SC, btw

[Anonymous]

We have a cheap gas station that is always the lowest because they are cash only.

I believe they pay 3-4% to the ccc's, so you would think that would be one way to be more profitable.

[Anonymous]

If 1 gallon of has is $4.00 and they are giving a $0.10 discount to those who pay cash, I'll happily charge the gas to my Discover card.

Cash before: 10 gallons * $4.00/gallon = $40.00

Cash now: 10 gallons * ($4.00-$-0.10)/gallon = $39.00

Discover: 10 gallons * ($4.00 - 5%)/gallon = $38.00

Thanks for the cash back Discover!

[jmbfl]

I think this is a violation of their card processing agreement with VISA and MasterCard. It is not permitted to charge a different price to an person rendering payment with a CC. I would complain if I was confronted with this.

[Anonymous]

They are not allowed to charge a surcharge/fee for using your cc, but nothing prohibits them from offering a discount to those who pay in cash. Basically a symantecs argument, but that's how they can do it...

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jmbfl wrote:

I think this is a violation of their card processing agreement with VISA and MasterCard. It is not permitted to charge a different price to an person rendering payment with a CC. I would complain if I was confronted with this.

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[Anonymous]

Jaybird:  Which Discover card gives 5% cash back on everything?   They DO have the 5% cash back promos on certain types of purchases each quarter (gas and hotels this qtr), but not the whole year.....

[FretlessMayhem]

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@Anonymous wrote:

Jaybird:  Which Discover card gives 5% cash back on everything?   They DO have the 5% cash back promos on certain types of purchases each quarter (gas and hotels this qtr), but not the whole year.....

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Not everything, but the Open Road card is 5 percent back on gas and auto related purchases all year. This is on top of their normal cash back program and the very awesome ShopDiscover.com.

[Anonymous]

Any caps on the 5%?  The regular Discover caps it at $400, so max benefit each qtr is $20.