topic Re: using credit cards for gas? in Credit Cards

using credit cards for gas?

Anonymous — Tue, 08 Jul 2014 19:01:50 GMT

Is there even a point to use a credit card to buy gas? For the gas stations around me, they always charge a much higher price for those using credit cards, and wouldn't that just cancel out any awards earned than if I had just paid for gas with cash?

Re: using credit cards for gas?

Ghoshida — Tue, 08 Jul 2014 19:09:57 GMT

@Anonymous wrote:
Is there even a point to use a credit card to buy gas? For the gas stations around me, they always charge a much higher price for those using credit cards, and wouldn't that just cancel out any awards earned than if I had just paid for gas with cash?

What's the difference per gallon?

For e.g. current prices where I live are about $3.50, so unless I see at least a 18 cent reduction, I won't pay cash For convenience, I'd keep the threshold at about 20 cents discount.

Re: using credit cards for gas?

Anonymous — Tue, 08 Jul 2014 19:15:25 GMT

It's usually like 10 cents more just for using credit card

Re: using credit cards for gas?

sportsguy83 — Tue, 08 Jul 2014 19:26:01 GMT

I’ve wondered about this too but found its worth it if you do the math. I guess it really depends on how much more it is to use a credit card – around here it is usually only a 10 cent/gallon difference. So if you have a Chase Freedom (or something similar) which gets 5% two quarters out of the year it saves you more. Let’s say you are charged an extra 10 cents/gallon for using a credit card. If you buy 16 gallons you pay an extra $1.60 just to use your credit card. If gas is $4/gallon that is $64. 5% of that is $3.20 – more than the extra you are paying to use your credit card. Even a card that gets only 3% back (more common) would be better by 30 cents under that scenario.

Re: using credit cards for gas?

longtime_lurker — Tue, 08 Jul 2014 19:21:01 GMT

@Anonymous wrote:
It's usually like 10 cents more just for using credit card

So while that's a pain, at 3.50 (3.60 for credit), I still come out ahead using credit on my SM, or for this quarter Discover It/Freedom (I come out VERY ahead on Freedom this Q for gas), since I'd be effectively getting a 18 cent/gallon discount using SM or IT

Re: using credit cards for gas?

PlasticOrPlastic — Tue, 08 Jul 2014 19:21:30 GMT

@Anonymous wrote:
It's usually like 10 cents more just for using credit card

Theres no difference by me for paying with a card so I guess its worth it for me. Currently gas is sitting at $3.64 so a tank of gas earns me just under 3 bucks on my Discover or Sallie card. Adds up fast for summer months when I feel like I'm constantly filling up.

Re: using credit cards for gas?

SunriseEarth — Tue, 08 Jul 2014 19:23:17 GMT

@Anonymous wrote:
It's usually like 10 cents more just for using credit card

If you pay $4 a gallon and used a CC that got 3% cash back for gas, you'd be getting 12 cents a gallon, which would offset the price difference. The gas stations here that have a difference usually keep it less than 10 cents, so it works out well for me. However, if you don't have a CC with decent gas rewards, you could always get a gas card for the station you frequent most often; gas stations tend to charge the cash price for their own CCs.

I think aside from rewards, you're much safer using a CC at a gas pump. If your card ever got skimmed from one of those in-pump readers, it's much better to have a CL compromised instead of a bank account. Cash is fine, but CC is certainly faster.

Re: using credit cards for gas?

Anonymous — Tue, 08 Jul 2014 19:37:19 GMT

@sportsguy83 wrote:
I’ve wondered about this too but found its worth it if you do the math. I guess it really depends on how much more it is to use a credit card – around here it is usually only a 10 cent/gallon difference. So if you have a Chase Freedom (or something similar) which gets 5% two quarters out of the year it saves you more. Let’s say you are charged an extra 10 cents/gallon for using a credit card. If you buy 16 gallons you pay an extra $1.60 just to use your credit card. If gas is $4/gallon that is $64. 5% of that is $3.20 – more than the extra you are paying to use your credit card. Even a card that gets only 3% back (more common) would be better by 30 cents under that scenario.

And if you use Freedom as UR points, with a transfer card, the points are worth more than 1c, so it is even more worthwhile.

Re: using credit cards for gas?

tattooedhusker — Tue, 08 Jul 2014 19:41:52 GMT

@PlasticOrPlastic wrote:
@Anonymous wrote:
It's usually like 10 cents more just for using credit card
Theres no difference by me for paying with a card so I guess its worth it for me. Currently gas is sitting at $3.64 so a tank of gas earns me just under 3 bucks on my Discover or Sallie card. Adds up fast for summer months when I feel like I'm constantly filling up.

Same way here, same price either way. It's worth it, but I only spend about $140/month on gas

Re: using credit cards for gas?

PlasticOrPlastic — Tue, 08 Jul 2014 20:06:45 GMT

Just curious where do you guys live that they charge 10 cents a gallon to use credit? That seems insane to me....

Re: using credit cards for gas?

Anonymous — Tue, 08 Jul 2014 20:22:33 GMT

@PlasticOrPlastic wrote:
Just curious where do you guys live that they charge 10 cents a gallon to use credit? That seems insane to me....

Insane in what way, too small or shouldn't happen at all!

Since the beginning of credit cards, merchants would like to charge more for credit to make up for the transaction fees. This is real, although the CCCs would argue that accepting cards drives additional traffic and purchasing power (because people spend more than they have) and also there are costs in handling and transporting cash.

Only recently, in some states, are merchants allowed to impose a surcharge for credit. Because of competition, a lot of merchants don't do it, scared they will lose credit customers to other stores.

Prior to that, many gas stations gave "discount for cash" which is of course EXTREMELY different from "surcharge for credit". In the first case you pay 10c per gallon more for using a credit card, and in the second case you spend 10c more per gallon for using a credit card!

Re: using credit cards for gas?

Turbobuick — Tue, 08 Jul 2014 20:29:51 GMT

@PlasticOrPlastic wrote:
Just curious where do you guys live that they charge 10 cents a gallon to use credit? That seems insane to me....

Southern California for one! Sometimes it's more than a 10 cent penalty for plastic. This is why we finally ended up at Costco and their Amex card. They are already 25+ cents cheaper per gallon at the pump than the local major suppliers. About on par with Arco which doesn't accept rebate/credit cards. Cheaper gas with the 3% rebate is hard to beat.

Re: using credit cards for gas?

PlasticOrPlastic — Tue, 08 Jul 2014 20:34:24 GMT

@Anonymous wrote:
@PlasticOrPlastic wrote:
Just curious where do you guys live that they charge 10 cents a gallon to use credit? That seems insane to me....
Insane in what way, too small or shouldn't happen at all!

Since the beginning of credit cards, merchants would like to charge more for credit to make up for the transaction fees. This is real, although the CCCs would argue that accepting cards drives additional traffic and purchasing power (because people spend more than they have) and also there are costs in handling and transporting cash.

Only recently, in some states, are merchants allowed to impose a surcharge for credit. Because of competition, a lot of merchants don't do it, scared they will lose credit customers to other stores.

Prior to that, many gas stations gave "discount for cash" which is of course EXTREMELY different from "surcharge for credit". In the first case you pay 10c per gallon more for using a credit card, and in the second case you spend 10c more per gallon for using a credit card!

It shouldnt happen at all. I understand the surcharge to make up for transaction fees but around here only the smallest mom and pop gas stations charge extra to use a credit card, which is fine because they usually operate on the outskirts of town where people will pay the extra since they have no choice. In the city though everybody is pretty competitive and I've never seen a surcharge to use credit. In this day and age most people use some form of credit/debit card. I personally never carry cash, and actually find myself quite annoyed when merchants don't accept credit or debit cards. Thats why I was wondering where people are living or buying gas that charges 10 cents per gallon to use a credit card.

Re: using credit cards for gas?

sportsguy83 — Tue, 08 Jul 2014 20:35:19 GMT

@PlasticOrPlastic wrote:
Just curious where do you guys live that they charge 10 cents a gallon to use credit? That seems insane to me....

Seattle metro area and Washington in general. Not all stations but a lot of them are 10 cents more to use credit cards. Also some stations like Chevron charge an extra 10 cents if you use a credit card OTHER than their own (i.e. the Chevron gas card). It's ridiculous.

Re: using credit cards for gas?

RushXTC — Tue, 08 Jul 2014 21:43:59 GMT

@Anonymous wrote:
Is there even a point to use a credit card to buy gas? For the gas stations around me, they always charge a much higher price for those using credit cards, and wouldn't that just cancel out any awards earned than if I had just paid for gas with cash?

I use Chevron only and they charge the same here.

So I can get either 3% on my BoA Cash Rewards (All year long) or 5% in a certain quarter with my Discover.

Re: using credit cards for gas?

Anonymous — Tue, 08 Jul 2014 21:45:34 GMT

@PlasticOrPlastic wrote:
Just curious where do you guys live that they charge 10 cents a gallon to use credit? That seems insane to me....

Tom Thumb (Safeway) here in Texas charges 10 cents more per gallon for credit

Re: using credit cards for gas?

mongstradamus — Tue, 08 Jul 2014 22:44:49 GMT

@PlasticOrPlastic wrote:
Just curious where do you guys live that they charge 10 cents a gallon to use credit? That seems insane to me....

A lot of places in Connecticut do that,I just choose to not go to them even if they are few cents cheaper

Re: using credit cards for gas?

B335is — Tue, 08 Jul 2014 22:46:50 GMT

Living in Detroit, I only pay with credit cards - for anything - and it's $0.10 per gallon for using credit card here. There's too many skimming machines being used by criminals to put your liquid funds at risk by using Debit cards.

Re: using credit cards for gas?

mongstradamus — Tue, 08 Jul 2014 22:48:01 GMT

@B335is wrote:
Living in Detroit, I only pay with credit cards - for anything - and it's $0.10 per gallon for using credit card here. There's too many skimming machines being used by criminals to put your liquid funds at risk by using Debit cards.

Here they count debut cards as credit cards.you need actual paper money for it to qualify for cash price

Re: using credit cards for gas?

B335is — Tue, 08 Jul 2014 23:02:13 GMT

@mongstradamus wrote:
@B335is wrote:
Living in Detroit, I only pay with credit cards - for anything - and it's $0.10 per gallon for using credit card here. There's too many skimming machines being used by criminals to put your liquid funds at risk by using Debit cards.
Here they count debut cards as credit cards.you need actual paper money for it to qualify for cash price

See it's been so long since I paid cash I didn't realize it's the old fashioned cold hard cash!!