Discount on fuel if paying with cash??
We r heading south. Do any stations give discounts if we pay for fuel with cash?
Forum Discussion
It's all about the money. The station isn't giving you 5 cents off. They are saving themselves 2 cents.
Typical charge by the card company is around 2%. At $3.50 a gallon that is 7 cents a gallon. Station is making $3.43 a gallon. If you pay $3.45 a gallon cash, the station makes $3.45 a gallon.
So you save 5 cents on 50 gallons and hand them $172.50 in cash. No more cost to them.
Or you pay $175 with credit. They pay the card company $3.50. On top of that there is the extra paper work (or most likely computer work) to get their $171.50 back. So take a little more off of their profit.
The card companies lose interest payments for those using cash so they fight back and give me 5% off of fuel purchases. Hoping I will not pay my bill off every month. So now the cost to me is $166.25 for paying with credit.
Don't pay that off for a few months and you are losing that saved money.
Typical charge by the card company is around 2%. At $3.50 a gallon that is 7 cents a gallon. Station is making $3.43 a gallon. If you pay $3.45 a gallon cash, the station makes $3.45 a gallon.
So you save 5 cents on 50 gallons and hand them $172.50 in cash. No more cost to them.
Or you pay $175 with credit. They pay the card company $3.50. On top of that there is the extra paper work (or most likely computer work) to get their $171.50 back. So take a little more off of their profit.
The card companies lose interest payments for those using cash so they fight back and give me 5% off of fuel purchases. Hoping I will not pay my bill off every month. So now the cost to me is $166.25 for paying with credit.
Don't pay that off for a few months and you are losing that saved money.
