I don't think I'm ready to give up the convenience of paying at the pump.  I understand that it costs service stations more and I can sympathize, but I don't think a cash discount is going to off-set having to stand in line for 10 minutes while you try to pay for your gas.  I pay at the pump, not to get a gas rebate or earn points on my credit card, but because its quicker.

In NJ the difference is .10/gallon between paying cash or paying credit.

Common myths?

1. It is illeagal to charge the customer more if they want to use a credit card.

2. Gas stations only make two to three cents per gallon.

Anyones insights?

Answers:

1. Not Illegal.  Self serve vs. Full serve  (if you remember full service) full service cost more. Why? you were paying for service.  You are paying to use the credit card service.

2. i believe it!  search it out numerous stories on the internet/news sites about costs and profits of station owners.

"Most typically eke out just 2 or 3 cents of profit per gallon, if that. "

Where does the bulk of the money go? The oil companies? Certain countries?  I understand and agree with the free market/capitalism concept, but surely we are now at the point where we are experiencing a global cartel situation?

Answers:

1. Yes, it is against MasterCard and Visa rules and regulations to charge more to pay with a credit card.  I know this because I work in the industry.  You can, although, offer discounts to customers who pay with cash instead of credit.  

If the discount amounted to .10 or more per gallon, it *might* overcome my desire to pay at the pump when I fill up at 11:00pm after getting off work. Or, since my nearest and cheapest gas station is incredibly busy almost all the time, I would really have to feel like standing in line for a long time. While it adds up, when I'm dead tired and dragging, that extra savings of $1-$1.50 probably wouldn't be enough to get me inside the store.

The stores really should do something like that though - or maybe a frequent shopper card/punch card for cash customers. If their profit margin is only a percentage point or two, then they should be trying harder to get people inside for those impulse buys.

I can wish or a cash discount.  After finding out how high the hold on my debit card was at some stations, I have taken to paying with cash.  It is worth the time and the savings to make the walk to the store.  When you want to top the tank for $35 and they hold $75 it is worth the effort.  Sometimes it can take a week to have the $40 released from the bank.  My money is tight like everyone else but I don't do credit cards so its debit or cash.

An off-brand gas station in the Cleveland, OH area stopped accepting credit cards around the time gasoline approached $3 per gallon.  That station is among the lowest priced in town.  I believe the station also requires pre-payment, so customers don't steal gasoline by driving off without paying.  Gasoline purchases, at the rate gas prices are going, will run up credit card bills fast.  And up until the early to mid 1990's, many gasoline stations, especially the so-called "discount" brands, DID NOT accept credit cards.  Speedway/Gastown/Bonded did not start taking plastic until the early 1990's, for example. (This was also around the time they merged with Ashland Oil's Superamerica brand.)  The only credit cards they accepted were fleet and commercial fuel cards, at locations that were also truck stops.  When gasoline pumps with credit card slots became widespread is when more gas stations started taking plastic.  Still other gas stations only accepted their own branded cards, and did not accept Mastercard, Visa, Discover, or American Express, while others accepted pretty much any credit card, including Diners Club and Carte Blanche.  (This was back when credit cards were pretty much only for the well-to-do; the average Joe was more likely to be turned down for a credit card back then.)  I also remember going to a Shell station at 2:00 in the morning (in the mid-1980's) to fill up, and the station would not accept my Mastercard because they coudn't contact the credit card center to accept the payment.  (I had to pay cash as a result.)  There was no "pay at the pump" at the time.  Back then, gas was 99 cents a gallon and I bought $20 worth.  

And both banks and gas station owners should make it clear about holds placed on debit/check card accounts when gasoline is purchased either via "pay at the pump" or signature/credit (non-PIN).  If it's the gas station putting the hold on, they should post the amount of this hold on the pump.  If it's the banks, they should include the amount of this hold in literature included with monthly bank statements, as well as applications for debit/check cards or checking accounts.  This way, if customers are aware in advance about these holds, they would be less likely to unknowingly overdraw their checking accounts when they buy gasoline.  Customers should contact their financial institutions to ask how much a hold is, when purchasing fuel via "pay at the pump" or signature/credit, before going to the gas station...especially after they write checks for bills (such as rent/mortgage, utilities, car payments, credit card bills, etc.) so they don't bounce as a result of these holds.  Or better yet, make sure you have at least a $100 cushion in your checking account, and wait for all outstanding checks and debits to clear, before buying gasoline with your debit card.  If you need gas right away, withdraw the cash and pay cash for your fuel.  

what causes you folks to think a reasonable operator of a gas station has not long ago factored in the cost of the credit card service charge?