Save $ at the pump

A friend told me about this. If you regularly use your credit card at the pump, do you pay a higher price? Well here's what you do. Go buy a Visa, MC or AE gift card(I buy 3- $100 cards/month) Use that at the pump instead. It reads it as cash and you pay the lower price. Often about 10cents per gallon difference. Saves you $2 on a refill, times 52 weeks = $104 per year in savings. Hey it might not seem like much, but you're also not paying any interest on it either! It all adds up in the end. Check it out. Bob

Bob C,

Some stations charge more if you use a credit/debit card (not all, and not most, but some), otherwise there is no difference in price using a credit card, a debit card, a prepaid card or cash???...assuming you pay off the credit card balance each month.



It's easier to simply pay cash, or just not use gas stations that charge extra for using credit/debit cards. I know charging extra for using plastic is a common practice in the New York area, and in some other major cities around the US. There are even some gas stations in the Dallas area that charge extra for using plastic...you just have to look for the signs they are required to post that tell you they charge more for using plastic.



Some grocery chains in the area will charge you less for gas if you use their prepaid credit card, or Wal-Mart will charge less if you pay with a Wal-Mart credit card.



I usually use my debit card to buy gas, but only at stations that do not charge extra for using credit/debit cards.



If you really want to save gas money, log onto www.gasbuddy.com, become a member and log in gas prices as you spot them. They can desplay the cheapest gas prices in your area, or any area by zip code. If you are planning a trip, they will map on your route and tell you were to gas up at the lowest prices stations along your route. If you have a smartphone with a GPS, they can even tell you the gas prices in the area where you are at any moment in time.



...Rich

I'm talking 'gift card' here. I understand what you're saying, but these are the same as cash and the pump reads it as such. Bob

Bob C,

I know what your saying....Around here, there is no difference unless the gas station charges extra for using plastic. Their signs will specifically say "Cash only prices" and they will charge you extra if you use plastic...I don't know if they consider "Gift Cards as cash? Fortunately, there are very few stations in this area that charge extra for using credit/debit cards.



The only exceptions I am aware of are a few stores like Wal-Mart and some large grocery chains that will have lower prices if you purchase your gas with one of "Their" branded gift cards only.



To me, buying a gift card is not very convenient since you can pay cash and get the lower price and you don't have to go through another step to get the gift card in the first place? Better yet, just go to other stations that will accept credit cards without requiring you to pay extra for using plastic. Using GasBuddy.com will show you the gas prices in your area, Just find the cheapest gas and you can check if they charge extra for using credit/debit cards.



Around here we have several stations that consistantly have the cheapest prices in town and Sam's Club is one of them....They all accept credit cards, but Sam's Club only accepts credit/debit cards (no cash) and requires you to use your Sam's Club membership card before your payment card to identify you as a member....Their gas is often about 8-10 cents cheaper per gallon than most other stations. Right now their Regular(87) is $3.32 and Premium(93) is $3.57 (it was down to $3.49 earlier this week) :grin:



...Rich

I can use my ATM debit card here in NY,,, IT goes in as cash and my credit union charges NO fee for gas.....



Living in ny has its ++++



Todd Z

I have never heard of paying more for using cards. That sucks if it means debit, too. If anyone is actually putting gas on credit, I'd hate to see those statements.:cry:

Around here, I've never heard of anyone charging different amounts based on the payment method. In areas where the price is the same regardless of cash or credit, then the advice completely switches--You'll be best off paying with credit. With a credit card, you earn miles (or whatever program your credit card has), which you don't get with debit or cash. Also, the last thing you want to do is pay it with debit, as most stations will put a sizeable hold on your account when you scan the card, and then release that hold when the actual payment processes some time later. That time can be multiple days. In the meantime, if your bank account balance isn't high enough, you'll lose the ability to make purchases, or worse, go in the red and have to pay an overdraft fee, all because of the hold that hasn't cleared yet.

Hugh,

It is a very common practice with gas stations to charge more for using credit cards...mainly because the Credit Card companies will charge the merchant a fee to process the transaction...usually in the 2%-4% range..AmEx charges the higher fees.



Nothing wrong with using the credit card for buying gas or even groceries, as long as you pay off the account balance each month...then there is no interest charged. I know of several people who put everything they purchase on their credit card and then just pay it off when the bill comes.



I do that with my AmEx card since it has no limit and as long as I pay off the balance each month I don't have to pay any interest. I like that because I get a more fraud protection and even an extended warranty on anything I purchase with my AmEx card.



Bill V.

I agree that using credit cards is more convenient as long as they don't charge a premium for using plastic. Some gas stations in Dallas charge more, and I hear that NY is really out of control with the fees that they charge....and kind of hide the fact that they charge more.



When I was looking at getting a Merchant's account to accept credit card with my LeverLift business, I would have had to sign a contract agreement that I would not charge a fee or a higher price for customers using credit cards....Makes me wonder how gas stations get away with charging more?



...Rich

I pay with debit card at the pump all the time, but I put it through as credit simply to save time and not have to enter my pin. For about 24 hours after purchase I see two transactions when going onto my online account: One in the amount of $1 and titled "Credit Pre-Auth", then a second in the amount of the gasoline purchase LESS the $1 (if I bought $50 in gas then the amount is $49). After 24 hours those two transactions are replaced by one for the full amount.



Very few stations around my way have different price for cash and credit. The reason being, I think more and more people pay with their debit card like I do rather than carry cash, and they refuse to pay more for that priveledge.



TJR

I find it much easier to pay debit and maintain a balanced checkbook regardless of what's going on behind the scenes (which I also track online). It shouldn't be a secret to anyone how much money they've authorized for release from their account, regardless of time of day or transaction delays.



Our credit card is used for online purchases only. The physical cards are actually in a safe.

I buy my gas at BP. The more you buy, the lower the price. The pump lowers the price simply by me acknowledging that I want the lower price.

TJR,

Like you, I also use my Debit Card to purchase nearly all my gas. Some pumps here will ask if this is a Debit or Credit transaction and if Debit, you enter your PIN, if Credit, you enter your Zip Code?? A few stations don't process Debit cards and just default to Credit Card. That works the same way with your account getting charged $1.00 until the complete transaction is cleared then it adds the remaining credit charge. My bank treats all those as Debit card transactions anyway.



I have an Exxon/Mobil credit card with a SpeedPass, but rarely use them because Exxon/Mobil's prices are so much higher. They are currently running a program where they will deduct and rebate you 15 cents a gallon off your bill if you use your SpeedPass, but when they are charging more than 15 cent per gallon over the average station in the area, it's just not worth it, and it takes a couple of months to get your 15 cents a gallon back.



...Rich

Saw that happening recently when in FL on Spring Break for MLB Spring Training Grapefruit League games back in March. But the idea hasn't gotten as far north as TN yet.



I buy my gas from BP for several reasons: their rebate program [ not as good as it use to be though], closest station to my house & always have had good luck w/their brand [so far], been using it for years in 3 Sport Tracs.



FYI: EXXON also has their own credit card that gives you back 15 cents per gallon off your bill @ the end of each month. Shell also has something similiar as far as I know.

Mark K, I haven't heard of that one at any BP stations here in the Twin Cities. Is it something just at your local station, or have you seen it elsewhere? Have you seen it in MN at all? At what volume(s) do the lower prices kick in, and how much lower are they?

I do credit and no extra charge. I get 4% cash back and pay off every month.

Be careful using debit cards at gas stations.

One other thing that some gas & convenience stores do. With debit card use.

Example is, say you spend $60. The store electronicaly attaches $95 to your account. The $35 will be put back in your account, 24 hours latter. After the assurance they got their $60. The $35 was to cover their fee on not enough funds.

If you only had $75 in your account, you just got an overdraft. It is happening to many that live paycheck to paycheck.

First story I read about. Was last yr, a single mom was in the news. With her complaint. They debited her $65 for about half that amount in sales. That day was payday. After deposit and paying bills. Every check bounced. Living on the border $$ wise. Some merchants have stoped it, but not all.

Eddie,

I have never encountered any convenience stores that attach any fee to cover overdrafts...That's what the debit/credit cards prevent because they are approved when you make a puchase. If your card is excepted for payment, that means you have money in your checking account, or you have enough available credit to cover the cost. Once they approve your purchase, they will come after you if you do not have the money in your account, or if you have already maxed out your credit card...and most have hefty fees for doing that.



I would be very suspicious of anyone gas station that added a $35 fee in advance, just incase you did not have the money or credit available??? When the card is approved they get an authorization number and that confirms the transaction between them and the credit/debit card company.



Tom T,

I check my debit card bank balance every day, especially after using it to make a purchase. I will know immediately if someone is charging my card without my permission.



...Rich

Does anybody keep a balanced checkbook anymore or is it just me?

Hugh,

I do...Of course with my debit card and my bank's free bill-payer service, I rarely ever write an actual check...:grin:



I check my interest paying checking account everyday, and often several times a day to insure all debits and credits are posted accurately and promptly. I have been doing this for about the past 5 years and love it.



I actually have 3 checking accounts...one is my main interest bearing checking account linked to a savings account where most of my money resides. The other two checking accounts are free, no fee accounts that have no minimum balance requirements, which I use for internet transactions where I may not be 100% certain about the trustworthiness of the company I am doing business with. I only transfer enough money into those accounts when I need to, and any money that I receive into those accounts is immediately transfered out. Right now, one account has $40 and the other is at $0. One is a local bank and the other is an Ally Internet Bank account.



Your point is well taken, but I think the better question might be: "Does anyone even know how to balance a checkbook now??" :bwahaha:



....Rich