Cash, debit, and credit at the gas pump

[bishop]

I've been under the impression - for a long time - that debit was considered a cash transaction at gas stations, and thus not charged the additional fees that credit transactions were.

I filled up tonight and expected to pay $2.33 per gallon. The pump said it was $2.43. When I inquired inside, the lady said to read the sign again. Sure enough, "CASH" and "DEBIT/CREDIT" were the two categories.

When did this change? I usually use Shell because of some discounts we have available, so I haven't paid attention to the cash/credit difference. However, other stations I've used don't charge credit fees for debit transactions. What's up? I've got half a mind to contact Spinx (the chain) and complain.

 

[Wilpar76]

It depends on where you live. I started to see this pop up in my area last year when gas shot up as high as $4.50. A lot of gas stations started dropping the credit option and lumping debit/credit together and adding more fees to the transactions. When people were buying less gas, the gas stations were not making enough money to cover their fees associated with processing Visa/Mastercard and the like. They did several stories on the news about it here in Baltimore.

 

[jsrdrnr]

Yeah, it has to do with the fees for processing the debit cards as well as the credit cards. I know it sucks but that is the way the ball bounces.

 

[_JP_]

The upcharge is definitely not a new thing. I make sure to check the pumps carefully before fueling.

 

[bishop]

When did the major shift towards adding fees to debit gas transactions happen? I know the story behind this (I'm a personal finance sort of guy) but totally missed the debit move. Plus, 10 cents seems a bit steep. The usual markup around here has been 5.

 

[bigred90gt]

Perhaps it is a regional thing for some of you, but I have never paid a difference in price regardless of what for of payment I use. The price of the fuel is the price of the fuel, whether you pay with pennies, dollars, credit, or debit.

 

[chainfire]

It's also irritating when they put a $100 hold on your credit card for a few days while the station processes the $10 you actually paid for the gas.

 

[dpm802]

When did the major shift towards adding fees to debit gas transactions happen? I know the story behind this (I'm a personal finance sort of guy) but totally missed the debit move. Plus, 10 cents seems a bit steep. The usual markup around here has been 5.

The standard mark-up here in South Jersey is 6 cents per gallon, but some companies (particularly Venezuelan refineries like Citgo and Valero) charge a dime.

OTOH, I work on a military base, and the gas-stations there will actually offer a discount if you put the purchase on your Military Star Card, similar to a department store card, useful at the base exchange and other retail operations. The standard discount is 5 cents. For Veteran's Day, they are offering 11 cents off, and for the first and last week of December, it will be 20 cents off per gallon.

 

[Cuttingboard]

I always choose the credit option when paying with a debit card. I thought Exxon was the only company that charges extra for credit, instead of cash. I always use by debit card with the credit option when buying gas and have never been charged extra.

 

[mmack66]

perhaps it is a regional thing for some of you, but i have never paid a difference in price regardless of what for of payment i use. The price of the fuel is the price of the fuel, whether you pay with pennies, dollars, credit, or debit.

+1

 

[bishop]

...I always use by debit card with the credit option when buying gas and have never been charged extra.

So I'm not the only one who had previously been able to use debit just like cash. As has been suggested, it's most likely a store/chain decision. I'm definitely staying away from Spinx stations now.

On a related note, does anyone have a Shell Saver Card?

 

[82R100]

I have a Chase BP credit card and for a while they'd only ring up the cash price if I used the BP card at a BP station. About a year ago that changed.

 

[chfair]

don't see the extra charge even for credit around here, they do have minimum purchases in store to use a credit card though ($5 ussually) but never at the pump.

 

[Wendy]

I never use cash for anything so maybe I have been paying and not noticed a charge. I will have to pay more attention.

 

[SRock]

Luckily on base gas is discounted if you use your Star card (military only type credit card). I always buy my gas this way to get the discount and pay it in full monthly do I don't incur any interest.

 

[RBE17]

I remember hearing that charging more for gas when paying w/ a cc or debit car was illegal. Places that up charge don't get my business.

 

[TimMechEngr]

Perhaps it is a regional thing for some of you, but I have never paid a difference in price regardless of what for of payment I use. The price of the fuel is the price of the fuel, whether you pay with pennies, dollars, credit, or debit.

+1 again

 

[WhosYerBob]

Depends. In some areas debit and credit are the same price. In others, debit has a flat surcharge of X amount (it was $1.50 at one station locally and .50 cents at another).