I would like feedback on gas cards, pro and cons. Thank you and be safe.
Starting Score: 663
I just posted on another thread about gas cards but I'll repeat my list here. Previously there were two cards that paid a flat and full 5% cash back on gasoline, uncapped. Then the Ducks Unlimited card was recently converted to a 1.5% flat-rate cash back card for new applicants. (As far as I know, anyone who had the card under the old program was grandfathered-in and still gets 5% uncapped on gas.) So that just leaves one card that pays 5%, all year, all the time, uncapped on gas.
Abound FCU (previously Fort Knox FCU) Platinum Visa
For Honorable Mention, there are about a dozen others that pay 4% or higher, and many have some sort of caps or only offer the higher-payout as a rotating category. (However, if you have more than one of these cards, you can get savings on gas year-round.) Some of these lenders are geo-fenced or otherwise restricted to membership, but I include them all to be complete.
There are a lot of other cards that can pay 3% on gas, but I leave them off the list to focus on the higher-earning cards. For anyone without a flat-rate 2% or better card, there are some cards that give at least 2% on gas, even if it doesn't include other categories.
- Bank of America Cash Rewards with Preferred Rewards status:
- Platinum Honors* (5.25% up to $10K annually) *$100K deposits
- Platinum** (4.50% up to $10K annually) **$50K deposits
- Abound FCU Platinum Visa (5% uncapped)
- People Caring More Credit Union (5% up to $1K monthly or $12K annually)
- Aerospace FCU Platinum Visa Cash Back (5% up to $7K annually)
- Synchrony Bank Sam's Club Mastercard (5% up to $6K annually)
- Discover IT (5% up to $1500 in one quarter annually)
- Chase Freedom (5% up to $1500 in one quarter annually)
- ABOC (Amalgamated Bank of Chicago) Mastercard (5% up to $1500 in one quarter)
- Nusenda Credit Union Platinum Cash Rewards (5% up to $1500 in one quarter)
- USAA Cashback Rewards Plus AMEX (5% up to $3K annually)
- PenFed Platinum Rewards (4.25% uncapped based on 5x points at .85 value per point)
- Synchrony Bank Verizon Visa (4% uncapped but pays in Verizon credit)
- PNC Cash Rewards (4% up to $8K annually)
- Citi Costco Visa (4% up to $7K annually)
- Huntington Bancshares "Business Voice" Mastercard (4% up to $7K annually)
*Incidentally, the highest gasoline return I know of is my Chase Freedom which, when UR points are transferred to my Chase Sapphire Reserve for 50% redemption bonus for travel, earns 7.5% on $1500 in that quarter.
My go-to gas card is my Citibank Costco-Visa. Costco gives me highly competitive rates on gas so I buy there when I can, but the card earns 4% anywhere you buy gas on the first $7K annually. I like my Costco card a lot, but I would have a Costco membership anyway. (You must be a Costco member to get this card.) The main downside to it is that the rewards are given annually in a check form that has to be cashed inside Costco.
In the rotating quarters, I also use my Discover IT and Freedom cards that give me 5% back on up to $1500 in gas purchases. So I get between 4% and 5% on up to $10K annually, which more than fits my needs. I would consider the Abound FCU Platinum Visa but with what I already earn, it would be of neglible added benefit so not worth the additional card to manage and hard pull.
- - - - - - - - - - - - - - - - - - - -
Edit to Add:
- Nusenda Credit Union Platinum Cash Rewards (5% up to $1500 in one quarter)
.... compliments of @PullingMeSoftly.
"My go-to gas card is my Citibank Costco-Visa. Costco gives me highly competitive rates on gas so I buy there when I can, but the card earns 4% anywhere you buy gas on the first $7K annually. I like my Costco card a lot, but I would have a Costco membership anyway. (You must be a Costco member to get this card.) The main downside to it is that the rewards are given annually in a check form that has to be cashed inside Costco. "
Man, I wish they would change this. Even if they HAD to keep the credit in house, at lease make it quarterly.
I just posted about this - this and other Citi issues is the reason I might drop this card, now that I have the Verizon 4% for Gas.
Selfish piggy-back time for me, @Aim_High !
How much does the Chevron Texaco Visa earn you in actual "CB?"
I found this on the T&C:
Techron Advantage Credit Card Account (“Card Account”) and Techron Advantage Visa Credit Card Account (“Visa Card Account”)
Fuel credits (“Fuel Credits”) are earned on fuel purchases made at participating Chevron or Texaco stations in the U.S. Fuel Credits accrue during your billing period and will be applied as a statement credit to the balance on your Card Account or Visa Card Account at the end of the billing period in which they are earned. For each fuel purchase, you will earn three cents ($0.03) per gallon in Fuel Credits (“Base Fuel Credits”) that can be combined with additional Fuel Credits as explained below. Fuel Credits will not be earned on Chevron or Texaco commercial aviation fuel or on marine fuel purchases or cash advances. Your account must be in good standing to earn and receive Fuel Credits. If your Card Account or Visa Card Account is suspended, you will not earn Fuel Credits until your charging privileges have been restored. Fuel Credits will be forfeited if your Card Account or Visa Card Account is closed, whether by you or Synchrony Bank.
Fuel Credits for Visa Card Accounts
If you carry the Visa Card Account, you can combine your Base Fuel Credits with Fuel Credits earned from making Eligible Purchases as defined below (“Visa Spend Fuel Credits”). You can earn up to ten cents ($0.10) per gallon in Visa Spend Fuel Credits in two cents ($0.02) per one hundred dollar ($100.00) spend increments as described below. To earn Visa Spend Fuel Credits in any billing period you must meet one of the Eligible Purchase thresholds set forth below in that billing period. Eligible Purchases include net purchases (less credits, returns and adjustments) made on your Card Account or Visa Card Account, other than (i) purchases made at Chevron- or Texaco-branded retail locations and (ii) purchases made at any other fuel merchant (“Eligible Purchases”). If your Eligible Purchases in any billing period total: $100.00 to $199.99, you will earn two cents ($0.02) per gallon; $200.00 to $299.99, you will earn four cents ($0.04) per gallon; $300.00 to $399.99, you will earn six cents ($0.06) per gallon; $400.00 to $499.99, you will earn eight cents ($0.08) per gallon; and $500.00 or more, you will earn ten cents ($0.10) per gallon. A maximum of $300 in Visa Spend Fuel Credits may be earned in any calendar year.
Apperantly they changed it again and I have no idea how actually good this card is but it seems bleak. Before, you needed to spend $300 outside of Chevron/Texaco and then you got a flat amount per gallon back. This seems way more convuluted still.
Edit: Bolding titles for clarity
Must garden until 2/1/2022 to hit my goal AAOA. 
@SecretAzure wrote:Selfish piggy-back time for me, @Aim_High !
How much does the Chevron Texaco Visa earn you in actual "CB?"
I found this on the T&C:
Techron Advantage Credit Card Account (“Card Account”) and Techron Advantage Visa Credit Card Account (“Visa Card Account”)
Fuel credits (“Fuel Credits”) are earned on fuel purchases made at participating Chevron or Texaco stations in the U.S. Fuel Credits accrue during your billing period and will be applied as a statement credit to the balance on your Card Account or Visa Card Account at the end of the billing period in which they are earned. For each fuel purchase, you will earn three cents ($0.03) per gallon in Fuel Credits (“Base Fuel Credits”) that can be combined with additional Fuel Credits as explained below. Fuel Credits will not be earned on Chevron or Texaco commercial aviation fuel or on marine fuel purchases or cash advances. Your account must be in good standing to earn and receive Fuel Credits. If your Card Account or Visa Card Account is suspended, you will not earn Fuel Credits until your charging privileges have been restored. Fuel Credits will be forfeited if your Card Account or Visa Card Account is closed, whether by you or Synchrony Bank.
Fuel Credits for Visa Card Accounts
If you carry the Visa Card Account, you can combine your Base Fuel Credits with Fuel Credits earned from making Eligible Purchases as defined below (“Visa Spend Fuel Credits”). You can earn up to ten cents ($0.10) per gallon in Visa Spend Fuel Credits in two cents ($0.02) per one hundred dollar ($100.00) spend increments as described below. To earn Visa Spend Fuel Credits in any billing period you must meet one of the Eligible Purchase thresholds set forth below in that billing period. Eligible Purchases include net purchases (less credits, returns and adjustments) made on your Card Account or Visa Card Account, other than (i) purchases made at Chevron- or Texaco-branded retail locations and (ii) purchases made at any other fuel merchant (“Eligible Purchases”). If your Eligible Purchases in any billing period total: $100.00 to $199.99, you will earn two cents ($0.02) per gallon; $200.00 to $299.99, you will earn four cents ($0.04) per gallon; $300.00 to $399.99, you will earn six cents ($0.06) per gallon; $400.00 to $499.99, you will earn eight cents ($0.08) per gallon; and $500.00 or more, you will earn ten cents ($0.10) per gallon. A maximum of $300 in Visa Spend Fuel Credits may be earned in any calendar year.
Apperantly they changed it again and I have no idea how actually good this card is but it seems bleak. Before, you needed to spend $300 outside of Chevron/Texaco and then you got a flat amount per gallon back. This seems way more convuluted still.
Edit: Bolding titles for clarity
I don't do it, but I've previously read about members combining a credit card that has a good earn rate on gasoline with a loyal customer account with certain major retailers to "stack" their fuel rewards. That can be a good trick if you frequently shop at one brand, without restricting yourself with the brand's credit card. It gives you added savings without the longer-term commitment.
I dislike these gas chain credit card discounts. Yes, they are better than what gas card used to offer, which was nothing! 
But they usually can't compete with other cards that aren't tied to a particular retailer. Let's look at this card's fine print.
First point is that you have to use the credits to buy gas at that chain, and therefore you are committing to whatever prices they charge. Sometimes, that isn't the best deal. I often use the "Gas Buddy" application to search for low gas prices when I buy away from Costco. There can be a wide variation between stations, even in the same general area, and some stations are slower or quicker to adjust prices as the markets change up or down. Having flexibility is always a good way to save on gas.
Second point is that they often tie rewards to a discount on a "cents per gallon" of gasoline, but gas prices can vary widely! Saving "up to 10 cents per gallon" sounds good. I imagine they do that because some people tend to mentally equate that somehow with saving 10%. Of course, it's not. It's a mind trick; it makes the discount sound larger than it really is. At the lower range of current gas prices of about $2 a gallon for regular in some parts of the country, 10 CENTS a gallon savings would be up to about 5% a gallon. (However, you're not earning even that much because of the requirement to use the card for $500 in non-gas purchases which don't earn rewards.) In higher-priced areas or for higher octane gas, that may be $4 a gallon (or about 2.5%) minus the lost rewards on the $500. You're much better off with a card that earns an unrestricted (or much less restricted) 3%, 4% or a true and full 5% on gas combined with a flat-rate card on the non-gas spend.
Third, there's that $500 non-gas spend which earns no rewards on a gas station card. If you only have a generic flat-rate 1.5% card, you're already behind $7.50 in earnings on $500 spend. If you have a "good" flat-rate 2% card, you're behind $10.00 before you pump any gas. And if you have an above-average card like my AOD FCU Visa that earns a flat-rate 3%, you're already behind $15.00. That makes it unlikely for a gas card like this to catch up on overall savings, even with the potential top-earning rate of "5%."
But back to the spending equation and the "true" earn rate. I'll give them the credit and assume they are charging you the same or less per-gallon than any other station, which is highly unlikely in all situations. I'll also assume you spend exactly $500 in non-gas purchases to earn the top rewards rate and not a penny more, which is also a generous assumption. I'll assume my example of two cars in a household with 20-gallon tanks each and using one tank per week per car is typical. Some may be more, some may be less but that's probably pretty average nationally. That is 40 gallons of gas per week or 160 gallons of gas per month. That would earn $16 in cashback if you qualified for the highest 10 cents-per-gallon savings. In turn, your household gas bills would be:
$2 per gallon .... $80 per week or $320 per month
$3 per gallon ... $120 per week or $480 per month
$4 per gallon ... $160 per week or $640 per month
Your monthly rate of return would be (as high as):
($2 per gallon) ... $500 + $320 = $820 to earn $16 or 1.95% overall.
($3 per gallon) ... $500 + $480 = $980 to earn $16 or 1.63% overall.
($4 per gallon) ... $500 + $640 = $1140 to earn $16 or 1.40% overall.
So perhaps as much as 1.95%, but this could decrease month-to-month if:
(1) you spend less than $500 non-gas and lower your earnings rate
(2) you spend anything more than $500 non-gas above the minimum requirement for top rewards
(3) you purchase less gas that month which is what your earnings are based on
(4) aren't getting the lowest price-per-gallon in order to buy gas at this retailer
(5) gas prices rise in your area or you travel to a higher-cost area, since higher prices per gallon lower your earnings
In other words, your earnings are highly complicated and are a constantly moving target! Unless you spend time analyzing your monthly spending every single month, you probably don't really know exactly what your true earning rate is, which is by the design of the card! Meanwhile, you're probably not even earning 2% back on the gas, much less 3%, 4% or 5%. And in many cases, you might be better with a 2% card like PenFed Power Cash Rewards, PayPal Mastercard, or Citi Double Cash and calling it a day. You might even be better off with 1.5% card on everything and saving more money by selecting the stations with lower prices.
Usually, a complicated rewards program like this is a clear signal that it's designed to be confusing and tilt the table in the lender's favor. Buyer beware.
Interesting graphics on AAA website that show gasoline price history and how widely it varies geographically. Using my example above, a stated 10-cents-per-gallon goes farther when the price-per-gallon is lower.
In two extremes (Mississippi being a low price state and Hawaii being very high), REGULAR fuel prices:
In two extremes (Mississippi being a low price state and Hawaii being very high), PREMIUM fuel prices:
@Aim_High wrote:@SecretAzure wrote:Selfish piggy-back time for me, @Aim_High !
How much does the Chevron Texaco Visa earn you in actual "CB?"
I found this on the T&C:
Techron Advantage Credit Card Account (“Card Account”) and Techron Advantage Visa Credit Card Account (“Visa Card Account”)
Fuel credits (“Fuel Credits”) are earned on fuel purchases made at participating Chevron or Texaco stations in the U.S. Fuel Credits accrue during your billing period and will be applied as a statement credit to the balance on your Card Account or Visa Card Account at the end of the billing period in which they are earned. For each fuel purchase, you will earn three cents ($0.03) per gallon in Fuel Credits (“Base Fuel Credits”) that can be combined with additional Fuel Credits as explained below. Fuel Credits will not be earned on Chevron or Texaco commercial aviation fuel or on marine fuel purchases or cash advances. Your account must be in good standing to earn and receive Fuel Credits. If your Card Account or Visa Card Account is suspended, you will not earn Fuel Credits until your charging privileges have been restored. Fuel Credits will be forfeited if your Card Account or Visa Card Account is closed, whether by you or Synchrony Bank.
Fuel Credits for Visa Card Accounts
If you carry the Visa Card Account, you can combine your Base Fuel Credits with Fuel Credits earned from making Eligible Purchases as defined below (“Visa Spend Fuel Credits”). You can earn up to ten cents ($0.10) per gallon in Visa Spend Fuel Credits in two cents ($0.02) per one hundred dollar ($100.00) spend increments as described below. To earn Visa Spend Fuel Credits in any billing period you must meet one of the Eligible Purchase thresholds set forth below in that billing period. Eligible Purchases include net purchases (less credits, returns and adjustments) made on your Card Account or Visa Card Account, other than (i) purchases made at Chevron- or Texaco-branded retail locations and (ii) purchases made at any other fuel merchant (“Eligible Purchases”). If your Eligible Purchases in any billing period total: $100.00 to $199.99, you will earn two cents ($0.02) per gallon; $200.00 to $299.99, you will earn four cents ($0.04) per gallon; $300.00 to $399.99, you will earn six cents ($0.06) per gallon; $400.00 to $499.99, you will earn eight cents ($0.08) per gallon; and $500.00 or more, you will earn ten cents ($0.10) per gallon. A maximum of $300 in Visa Spend Fuel Credits may be earned in any calendar year.
Apperantly they changed it again and I have no idea how actually good this card is but it seems bleak. Before, you needed to spend $300 outside of Chevron/Texaco and then you got a flat amount per gallon back. This seems way more convuluted still.
Edit: Bolding titles for clarity
I don't do it, but I've previously read about members combining a credit card that has a good earn rate on gasoline with a loyal customer account with certain major retailers to "stack" their fuel rewards. That can be a good trick if you frequently shop at one brand, without restricting yourself with the brand's credit card. It gives you added savings without the longer-term commitment.
I dislike these gas chain credit card discounts. Yes, they are better than what gas card used to offer, which was nothing!
First point is that you have to use the credits to buy gas at that chain, and therefore you are committing to whatever prices they charge. Sometimes, that isn't the best deal. I often use the "Gas Buddy" application to search for low gas prices when I buy away from Costco. There can be a wide variation between stations, even in the same general area, and some stations are slower or quicker to adjust prices as the markets change up or down. Having flexibility is always a good way to save on gas.
Second point is that they often tie rewards to a discount on a "cents per gallon" of gasoline, but gas prices can vary widely! Saving "up to 10 cents per gallon" sounds good. I imagine they do that because some people tend to mentally equate that somehow with saving 10%. Of course, it's not. It's a mind trick; it makes the discount sound larger than it really is. At the lower range of current gas prices of about $2 a gallon for regular in some parts of the country, 10 CENTS a gallon savings would be up to about 5% a gallon. (However, you're not earning even that much because of the requirement to use the card for $500 in non-gas purchases which don't earn rewards.) In higher-priced areas or for higher octane gas, that may be $4 a gallon (or about 2.5%) minus the lost rewards on the $500. You're much better off with a card that earns an unrestricted (or much less restricted) 3%, 4% or a true and full 5% on gas combined with a flat-rate card on the non-gas spend.
Third, there's that $500 non-gas spend which earns no rewards on a gas station card. If you only have a generic flat-rate 1.5% card, you're already behind $7.50 in earnings on $500 spend. If you have a "good" flat-rate 2% card, you're behind $10.00 before you pump any gas. And if you have an above-average card like my AOD FCU Visa that earns a flat-rate 3%, you're already behind $15.00. That makes it unlikely for a gas card like this to catch up on overall savings, even with the potential top-earning rate of "5%."
But back to the spending equation and the "true" earn rate. I'll give them the credit and assume they are charging you the same or less per-gallon than any other station, which is highly unlikely in all situations. I'll also assume you spend exactly $500 in non-gas purchases to earn the top rewards rate and not a penny more, which is also a generous assumption. I'll assume my example of two cars in a household with 20-gallon tanks each and using one tank per week per car is typical. Some may be more, some may be less but that's probably pretty average nationally. That is 40 gallons of gas per week or 160 gallons of gas per month. That would earn $16 in cashback if you qualified for the highest 10 cents-per-gallon savings. In turn, your household gas bills would be:
$2 per gallon .... $80 per week or $320 per month
$3 per gallon ... $120 per week or $480 per month
$4 per gallon ... $160 per week or $640 per month
Your monthly rate of return would be (as high as):
($2 per gallon) ... $500 + $320 = $820 to earn $16 or 1.95% overall.
($3 per gallon) ... $500 + $480 = $980 to earn $16 or 1.63% overall.
($4 per gallon) ... $500 + $640 = $1140 to earn $16 or 1.40% overall.
So perhaps as much as 1.95%, but this could decrease month-to-month if:
(1) you spend less than $500 non-gas and lower your earnings rate
(2) you spend anything more than $500 non-gas above the minimum requirement for top rewards
(3) you purchase less gas that month which is what your earnings are based on
(4) aren't getting the lowest price-per-gallon in order to buy gas at this retailer
(5) gas prices rise in your area or you travel to a higher-cost area, since higher prices per gallon lower your earnings
In other words, your earnings are highly complicated and are a constantly moving target! Unless you spend time analyzing your monthly spending every single month, you probably don't really know exactly what your true earning rate is, which is by the design of the card! Meanwhile, you're probably not even earning 2% back on the gas, much less 3%, 4% or 5%. And in many cases, you might be better with a 2% card like PenFed Power Cash Rewards, PayPal Mastercard, or Citi Double Cash and calling it a day. You might even be better off with 1.5% card on everything and saving more money by selecting the stations with lower prices.
Usually, a complicated rewards program like this is a clear signal that it's designed to be confusing and tilt the table in the lender's favor. Buyer beware.
HOLY COW DUDE!!! You went above and beyond. I knew it couldn't possibly be worth it but I actually did want to know how it would affect things overall. My gas spend is probably under most families as I live alone and my car makes it about 2 weeks per full tank of gas.
I have Chase Freedom Unlimited for 1.5% (not the best but I aspire to have Sapphire some day). I also have Freedom which is great for that one quarter.
Currently, if I were to max my CB, I'd use Amex BCE at the pump for a humble 2%. This is the one where I most wanted to know if Texaco could potentially beat it out. Clearly, it would be too much effort and still likely wouldn't be worth it.
Texaco is my oldest card though sadly, I don't suppose Synch would let me PC it to something more fun, right? 
Anywho, thank you for breaking out one of the most complicated rewards structures I have ever seen.
*HAVE ALL THE KUDOS*
@Aim_High wrote:@SecretAzure wrote:Selfish piggy-back time for me, @Aim_High !
How much does the Chevron Texaco Visa earn you in actual "CB?"
I found this on the T&C:
Techron Advantage Credit Card Account (“Card Account”) and Techron Advantage Visa Credit Card Account (“Visa Card Account”)
Fuel credits (“Fuel Credits”) are earned on fuel purchases made at participating Chevron or Texaco stations in the U.S. Fuel Credits accrue during your billing period and will be applied as a statement credit to the balance on your Card Account or Visa Card Account at the end of the billing period in which they are earned. For each fuel purchase, you will earn three cents ($0.03) per gallon in Fuel Credits (“Base Fuel Credits”) that can be combined with additional Fuel Credits as explained below. Fuel Credits will not be earned on Chevron or Texaco commercial aviation fuel or on marine fuel purchases or cash advances. Your account must be in good standing to earn and receive Fuel Credits. If your Card Account or Visa Card Account is suspended, you will not earn Fuel Credits until your charging privileges have been restored. Fuel Credits will be forfeited if your Card Account or Visa Card Account is closed, whether by you or Synchrony Bank.
Fuel Credits for Visa Card Accounts
If you carry the Visa Card Account, you can combine your Base Fuel Credits with Fuel Credits earned from making Eligible Purchases as defined below (“Visa Spend Fuel Credits”). You can earn up to ten cents ($0.10) per gallon in Visa Spend Fuel Credits in two cents ($0.02) per one hundred dollar ($100.00) spend increments as described below. To earn Visa Spend Fuel Credits in any billing period you must meet one of the Eligible Purchase thresholds set forth below in that billing period. Eligible Purchases include net purchases (less credits, returns and adjustments) made on your Card Account or Visa Card Account, other than (i) purchases made at Chevron- or Texaco-branded retail locations and (ii) purchases made at any other fuel merchant (“Eligible Purchases”). If your Eligible Purchases in any billing period total: $100.00 to $199.99, you will earn two cents ($0.02) per gallon; $200.00 to $299.99, you will earn four cents ($0.04) per gallon; $300.00 to $399.99, you will earn six cents ($0.06) per gallon; $400.00 to $499.99, you will earn eight cents ($0.08) per gallon; and $500.00 or more, you will earn ten cents ($0.10) per gallon. A maximum of $300 in Visa Spend Fuel Credits may be earned in any calendar year.
Apperantly they changed it again and I have no idea how actually good this card is but it seems bleak. Before, you needed to spend $300 outside of Chevron/Texaco and then you got a flat amount per gallon back. This seems way more convuluted still.
Edit: Bolding titles for clarity
I don't do it, but I've previously read about members combining a credit card that has a good earn rate on gasoline with a loyal customer account with certain major retailers to "stack" their fuel rewards. That can be a good trick if you frequently shop at one brand, without restricting yourself with the brand's credit card. It gives you added savings without the longer-term commitment.
I dislike these gas chain credit card discounts. Yes, they are better than what gas card used to offer, which was nothing!
First point is that you have to use the credits to buy gas at that chain, and therefore you are committing to whatever prices they charge. Sometimes, that isn't the best deal. I often use the "Gas Buddy" application to search for low gas prices when I buy away from Costco. There can be a wide variation between stations, even in the same general area, and some stations are slower or quicker to adjust prices as the markets change up or down. Having flexibility is always a good way to save on gas.
Second point is that they often tie rewards to a discount on a "cents per gallon" of gasoline, but gas prices can vary widely! Saving "up to 10 cents per gallon" sounds good. I imagine they do that because some people tend to mentally equate that somehow with saving 10%. Of course, it's not. It's a mind trick; it makes the discount sound larger than it really is. At the lower range of current gas prices of about $2 a gallon for regular in some parts of the country, 10 CENTS a gallon savings would be up to about 5% a gallon. (However, you're not earning even that much because of the requirement to use the card for $500 in non-gas purchases which don't earn rewards.) In higher-priced areas or for higher octane gas, that may be $4 a gallon (or about 2.5%) minus the lost rewards on the $500. You're much better off with a card that earns an unrestricted (or much less restricted) 3%, 4% or a true and full 5% on gas combined with a flat-rate card on the non-gas spend.
Third, there's that $500 non-gas spend which earns no rewards on a gas station card. If you only have a generic flat-rate 1.5% card, you're already behind $7.50 in earnings on $500 spend. If you have a "good" flat-rate 2% card, you're behind $10.00 before you pump any gas. And if you have an above-average card like my AOD FCU Visa that earns a flat-rate 3%, you're already behind $15.00. That makes it unlikely for a gas card like this to catch up on overall savings, even with the potential top-earning rate of "5%."
But back to the spending equation and the "true" earn rate. I'll give them the credit and assume they are charging you the same or less per-gallon than any other station, which is highly unlikely in all situations. I'll also assume you spend exactly $500 in non-gas purchases to earn the top rewards rate and not a penny more, which is also a generous assumption. I'll assume my example of two cars in a household with 20-gallon tanks each and using one tank per week per car is typical. Some may be more, some may be less but that's probably pretty average nationally. That is 40 gallons of gas per week or 160 gallons of gas per month. That would earn $16 in cashback if you qualified for the highest 10 cents-per-gallon savings. In turn, your household gas bills would be:
$2 per gallon .... $80 per week or $320 per month
$3 per gallon ... $120 per week or $480 per month
$4 per gallon ... $160 per week or $640 per month
Your monthly rate of return would be (as high as):
($2 per gallon) ... $500 + $320 = $820 to earn $16 or 1.95% overall.
($3 per gallon) ... $500 + $480 = $980 to earn $16 or 1.63% overall.
($4 per gallon) ... $500 + $640 = $1140 to earn $16 or 1.40% overall.
So perhaps as much as 1.95%, but this could decrease month-to-month if:
(1) you spend less than $500 non-gas and lower your earnings rate
(2) you spend anything more than $500 non-gas above the minimum requirement for top rewards
(3) you purchase less gas that month which is what your earnings are based on
(4) aren't getting the lowest price-per-gallon in order to buy gas at this retailer
(5) gas prices rise in your area or you travel to a higher-cost area, since higher prices per gallon lower your earnings
In other words, your earnings are highly complicated and are a constantly moving target! Unless you spend time analyzing your monthly spending every single month, you probably don't really know exactly what your true earning rate is, which is by the design of the card! Meanwhile, you're probably not even earning 2% back on the gas, much less 3%, 4% or 5%. And in many cases, you might be better with a 2% card like PenFed Power Cash Rewards, PayPal Mastercard, or Citi Double Cash and calling it a day. You might even be better off with 1.5% card on everything and saving more money by selecting the stations with lower prices.
Usually, a complicated rewards program like this is a clear signal that it's designed to be confusing and tilt the table in the lender's favor. Buyer beware.
Just for completeness, let's do a best case analysis. In this, you spend $500 in a month, use the full 3,000 gallons to get $300 off.
Your rate of return, at $2 per gallon:
$500+ 6000 to get $300 back = 300/6500 =4.6% So even this very unlikely scenario, which would only work for one month, hardly gives stellar returns.