top Ad Widget

Collapse

Announcement

Collapse
No announcement yet.

Decision at the gas pump: Cash or Credit?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Decision at the gas pump: Cash or Credit?

    Visa said last month it was reducing its cut on petroleum purchases to give station owners and consumers a break.
    Visa fee
    15-gallon tank @ $4.00 per gallon = 94 cents charged to service station
    Source: Visa


    "By lowering our rates, we hope to see oil companies pass these savings along to their stations and ultimately to consumers," said Bill Sheedy, global head of corporate strategy and business development for Visa Inc.

    MasterCard has also capped its fees on petroleum purchases to try to keep down prices.

    Both MasterCard and Visa point out that credit and debit cards offer security and convenience that they say beats cash.

    For some customers, that's an important consideration.

    "What if somebody jumps me? Can't do that," trucker Martin Bouvet, of Garfield, New Mexico, told CNN affiliate KFOX-TV.

    On the West Coast, cash discounts on gas are nothing new.

    ARCO, a unit of BP America which bills itself as the leading gasoline marketer in the West, stopped accepting credit cards in 1982. The policy allows ARCO customers to save 6 to 7 cents a gallon, the company says. It accepts debit cards, but charges a 45-cent transaction fee.

    A check of the Web site gasbuddy.com, which tracks gas prices in cities across the country, shows the difference can be substantially larger.

    An ARCO on Palomar Airport Road in Carlsbad, California, was selling regular for $4.27 a gallon on Monday. Just a few miles down the same street, Chevron and Mobil stations advertised regular for $4.59 a gallon.

    Charles Langley, who has tracked Southern California gas prices for the Utility Consumers' Action Network for 10 years, says drivers who charge their gas can actually end up paying substantially more than the 32 cents in the Carlsbad comparison.

    "More people are financing gas," he said, incurring interest payments along with the cost of the fuel. And he said credit card users need to be more aware and just check posted prices to save money.

    "Credit card buyers are notorious for not looking at the price of gas," he said, staying loyal to either their brand of gasoline or credit card they've used for a long time.

    Langley says he personally stopped paying for gas with plastic, and now drives by the motto, "More gas for less cash."
    "You can never get enough of what you don't need to make you happy."
    6/16/08: Attorney approached lenders to surrender old home
    8/26/08: Met w/attorney RE: filing BK
    9/29/08: Filing Chapter 7

    #2
    I pay for all food/gas with cash myself, it is an easy way to budget it.

    I've been amazed that they haven't charged more for credit cards for years, because I used to work in the field as a manager and those charges by the CC companies do eat into the bottom line of gas stations, I guess it took high gas for folks to see by how much.
    May 31st, 2007: Petition Filed by my lawyer
    July 2nd, 2007: 341 Meeting Held
    September 4th, 2007: Discharged and Closed.

    Comment


      #3
      Since our financial troubles became clear we have been using cash for everything too. I guess in a way it helps more people than just us.

      Great Article!!
      ichb
      Filed Chapter 7 June 20th
      341 scheduled for August 6th
      Discharged August 2008.

      Comment

      bottom Ad Widget

      Collapse
      Working...
      X