cash vs. credit at jersey gas stations

[FashionGod]

Anybody seeing this trend nationwide? I know I would pay cash for cheaper gas.

Fill it up and save with cash payment (http://www.courierpostonline.com/apps/pbcs.dll/article?AID=/20070810/NEWS01/708090389/1006/rss01)
By EILEEN STILWELL
Courier-Post Staff

Cash is king at about 15 percent of New Jersey's gas stations as retailers struggle to hold onto slim profits instead of siphoning them off in fees to credit card companies.

Making the switch from credit to cash was a no-brainer for Yvonne Stephens of Cherry Hill.

"To save 3 cents a gallon, I'll pay cash. I'm no dummy," said Stephens this week as she waited with a $20 bill at a US Gas station in Cherry Hill.

An eye-catcher at the corner of Kresson and Brace roads, the station's marquee spells out the two-tier pricing structure. Pay cash for regular gas at $2.51 a gallon, or pay $2.54 with a credit card. Pay $2.78 for premium gas with cash and $2.83 per gallon with plastic.

The choice has boosted cash sales at least 20 percent since it began in June, said station owner Gary Mathoan.

Not only are consumers happier, but Mathoan is happy to pay 20 percent less than the $5,000 a month he generally pays in credit card fees.

[Buck Laser]

Just as I wouldn't drive across town to save 3 cents a gallon, I wouldn't carry cash to save 3 cents a gallon. The convenience of paying at the pump with a card is too great to save a few cents. Besides, I get a record of my expenditures that way.

I pay my credit bill off every month, except when we put a vacation or something unusual on the card. We haven't used an ATM in 25 years, because the usage charge seems exorbitant.

So I'd say it more or less all washes out.

[Marley]

I have a 15 gallon tank.

Chasing a 3 cent price difference returns 45 cents for my efforts.

The credit swipe system has made gasoline a commodity available 24/7, an innovation worth the price.

[FashionGod]

Yeah, 45 cents is not really that much but collectively it adds up overtime. Based on the article, it appears that the credit card interchange fees play a role in the price of gas. At least for credit card purchases.

[Marley]

Over a year, even at two tanks a week, it adds up to $46.80, not enough for a decent dinner out.

All you need to understand is fill up when prices are rising and buy as little as possible when prices are falling. This is mathematically and logically correct while being counterintuitive and needs to be expressed for the betterment of my neighbors.

[Mayberry]

I don't have any more credit cards, and never will either, so I'll gladly take a cash discount! I do have a debit card, does that count as cash? It should!

[Labrocca]

Well we have a place not too far away that does 5 cents less for cash payment. Yeah it's not an astronomical amount but I pass by there often enough. They also have a car wash that with gas purchase is another $1 off ($3.99) so that's a good deal too. Believe it or not..I get my best deal at my local grocery store..Smith's.

When you buy X amount of grocery you save on gas. $30+ 5 cents, $60+ 10 cents, and $90+ you get 15 cents...I often get 10 cent of 15 cents off my gas and THAT'S a nice difference. With our two cars I think I save about $10-$20 a month just from that deal so it's not terrible and heck..it's the cheapest gas I can find.

As an ex-retailer I know that CC fees can really add up. You get that end of the month statement and realize that you just gave them a couple grand and they really do no work. Anytime I can help a retailer and screw the CC companies..I do it.

[Mayberry]

Anytime I can help a retailer and screw the CC companies..I do it.
I have about as much respect for CC companies as I have for insurance companies and lawyers. They'll all be roasting in hell. :P

[Labrocca]

Anytime I can help a retailer and screw the CC companies..I do it.
I have about as much respect for CC companies as I have for insurance companies and lawyers. They'll all be roasting in hell. :P


Lawyers are iffy...I have great friends that are Lawyers...

But I will say you forgot to mention Bankers...now THAT'S an evil bunch. :shock:

[Drocket]

Not only are consumers happier, but Mathoan is happy to pay 20 percent less than the $5,000 a month he generally pays in credit card fees.

This, to me, is an example of not seeing the forest for the trees. Credit cards are most definitely cheaper for merchants than cash is. The man-hours needed to count cash, make change and run to the bank to make deposits is astronomical. Then you get into clerks who make mistakes and, since we're talking about gas stations here, the inevitable robberies.

They're saving $1000/month by offering a discount on cash transactions - and probably losing 5 times that much because of the hassles associated with cash.

[firefox]

I've seen some places in the Southeast especially that offer this. Hey, more anonymity AND a discount? To me, that would be the best of both worlds! Still no sign of that trend yet on the west coast though. Hopefully that will change soon?

[FashionGod]

This, to me, is an example of not seeing the forest for the trees. Credit cards are most definitely cheaper for merchants than cash is.

Sorry, but that's not what the merchants are saying. Just look at the story from Jersey and the former retailer in this thread. I enjoy the convenience of the credit and debit cards but I know I'm paying the interchange fee in some way because it's a huge expense to the stores.

[rscheuer]

Whenever I see a gas station with a significant lower gas price by a few cents, I automatically think it's for the 'cash price' only, so I just drive around the corner to the next closest one anyways that has regular prices listed. It can be deceiving to people who don't know about the cash/ credit card price difference. It's too much of a hassel to find an ATM that won't charge me the extra few dollars to make the withdrawal, then drive somewhere else to pump my gas, after walking inside the store to pay for it. Sure, using the 'pay with cash system' is in the short run saving the gas stations money, but like others have said, it does not prevent more robberies or more labor work hours for the employees. I say charge it up! It is much more convenient for me. I don't have the time or the patience to stand in lines to save the few cents it would be saving me.