Charged extra for using a extra card/debit card...

[shanendoah]

I'll just say, gas stations aren't the only ones who do this.
I used turbo tax and to pay my taxes via credit card when submitting the tax return (electronically), we would have to pay a 2.7% (number may not be exact, but its close) surcharge. I don't know if its turbo tax or the IRS charging the fee.
DH's college is the same way - we can pay for his tuition via credit card, but pay a percentage fee or we can pay via an electronic check from our bank account for free.

So, in both cases, we would be charged a fee for using our credit card.

[azphx1972]

Well, a convenience fee is a little different: www.merchantcouncil.org/merchant-account/operation/convenience-fee.php

[shanendoah]

Don't you love how we have 5 different names all for the same thing? Its like we're eskimos talking about snow

I'm pretty sure that what the gas stations are charging is also a convenience fee - it is convenient for you because you don't have to go into the store, wait in line, remember what pump your at, etc. Its inconvenient for the gas station because it removes any chance that you will impulse buy a pack of gum or piece of beef jerky.

However, gas is the only thing (in states with sales tax) that vendors have to list the actual price you'll pay at the pump/cashier. I don't know why we have special rules about showing the price of gas, but we do.
That means that the gas stations may very well be calling it a convenience fee in legal terms, but because of the laws around gas pricing, can't list the cash price and then note that there's a 5% convenience fee for using a credit card. Instead, they have to list the exact price for credit cards, and then if there is a different price for cash (be it a discount or the actual price without the convenience fee) list that below.

[azphx1972]

Yeah, it's confusing.

[TD2K]

Most gas stations here don't charge for using a credit card but a few do.

[wvugurl26]

I never saw the cash discount thing for gas until I moved to MD. I've also run into stations here who only take cash. I rarely have cash on me. I've just learned what stations to avoid. Somehow Sam's Club seems to do ok and they only take cards, you can't pay with cash.

Around here the discount seems to run $0.03-.04/gal. As long as its a place that actually takes cards I'm good. I try to keep my car at least halfway full so at most I need around 7-8 gallons at a time. I had trouble with an automatic carwash that only took cash or codes. Wouldn't take my cash (miracle I had it) and of course there was a line behind me so I had no choice but to drive though car wash and get out of my car and pay attendant for code. At home I swipe my card and its done. Then after I finally got my car washed I went to get gas and you couldn't pay at the pump. Screw that. Too many gas stations in this town to deal with that.

[❤ mollymouser ❤]

That's pretty common around here.

[973beachbum]

The issue about minimum charges and surcharges vs. discounts is that those are violations of the contract between the merchant and the processor. They are not illegal in criminal sense, they are a civil contract dispute.

In about 10 states including the one I live in ,NJ, it is illegal in a criminal sense. There are easy ways around this for the stations. The most important one is that the pump must have the credit card price. It can also list the discounted price there but it doesn't have to. The teaser price on the sign doesn't have to be the credit card price. Ad laws are different and this is more like the grocery store ad that list the sale price but it is for customers with their special price club card.

Most around here that even do give a cash discount do list both prices as pissed of customers isn't exactly good for business either.

[Deleted]

Your math lost me, Toughtimes. If they charge the merchant 5% of the $100 I charge, then that is $5. How did you come up with 12 times $5, which by the way is only $60.

I do know our favorite little restaurant has a $10 minimum to use a card. That's also a violation, but I understand that they are trying to make ends meet. They also run a vegetable place as part of the restaurant, and they want to avoid a lot of small swipe fees.

[gooddecisions]

"As for minimum credit card charges, that's a no-no:

www.merchantcouncil.org/merchant-....credit-card.php
consumerist.com/2007/12/how-to-re....ou-show-id.html

I've reported businesses before for merchant violations, but it usually does no good so I've all but given up."

Your reference is accurate for 2007, but it's 2011 now and CARD Act of 2009 that Obama signed into law changed a lot of things. Additional provisions approved in 2010 resulted in minimum purchase requirements no longer being a violation (or the merchant can now require $10 as a minimum credit card purchase amount if they choose to). Cash "discounts" are also allowed as long as the state doesn't have a law against it.

[gooddecisions]

This article does an excellent job of explaining the minimum charge provision:
www.mightybargainhunter.com/2010/08/26/stores-can-now-refuse-small-credit-card-charges/

[daisylu]

I have known places that gave a discount for cash payments.

[ty]

Apr 22, 2011 6:00:11 GMT -5 TheHaitian said:

Is this normal? Have you run into this before?

I went to fill up my tank last night on my way home and the gas station charge $0.09/gallon extra if you use a credit card/debit card.

Is this normal?

A lot of places do this. They have to tell you in advance before you swipe your card. when I fill-up at the gas station and swipe my card, it tells me right up front that there will be a .45 charge for using the card. I have to option of paying in cash or using the card.

What I think is wrong here is that the free card swiping days are pretty much over. I'm just waiting for the food stores to start charging a fee for people buying groceries and using an ATM or Credit-Card.

Next will be when everyone decides to go with paperless billing, and then they start charging you a fee for that as well.

[Deleted]

What I think is wrong here is that the free card swiping days are pretty much over. I'm just waiting for the food stores to start charging a fee for people buying groceries and using an ATM or Credit-Card.

I would modify your prediction slightly. I think the bill to lower swipe fees will pass. When it does, these places will only accept debit transactions and cash. That's all you can use at Aldi's and Costco (except for your Costco Amex).

[tiredturkey]

One local gas station offers a 10-cent discount if you use their store branded credit card vs. Visa, Discover, etc. because they save the fee. But it's a station that has trouble attracting or keeping business because of the aggressive vagrants and junkies hanging out there.

A local floor store tried to charge the merchant fee back to me on a carpet purchase, saying I shouldn't expect them to pay it. I said merchant fees are a cost of doing business, like lighting, security, and employee wages and I voted with my feet by walking out the door.

[azphx1972]

Apr 23, 2011 11:23:29 GMT -5 gooddecisions said:

This article does an excellent job of explaining the minimum charge provision:
www.mightybargainhunter.com/2010/08/26/stores-can-now-refuse-small-credit-card-charges/

Thanks for the link. Sad news for consumers.

[gooddecisions]

"Never forget that they charge somewhere around 5% to the merchant simply to take a credit card"

Where are you getting 5%? Last I checked visa's site, the average interchange fee was less than 2%. Most merchants by far make up this cost because they gain more business by accepting credit card purchases. I understand gas stations are in a more precarious position given their limits on increasing the price of fuel. For supermarkets and other retail stores, they have already marked the prices up on merchandise, so you might as well use your credit card and collect your rewards.

And, for the merchant who isn't able to mark their prices up by the full processing rate, using your assumptions, it wouldn't be 5% of 100 x 12 = $60 of $100 in principal, they would have $1200 in sales at the cost of $60. Sales that they may not have gotten had they not accepted credit cards. Regardless, it's closer to 2% and they probably accounted for some, if not all, of that 2% in the price of the product.

Note: there may be additional fees for 3rd party processing companies (but you're sentence was "you've made the bank almost as much in merchant fees")...and the math wasn't adding up for me either.

[gooddecisions]

Still lost on your logic. Who is getting 24% interest? There is a difference between a 1.8% interchange exchange fee and interest.

[gooddecisions]

"If the merchant, "gets more sales." well then you are stuck a second time. More money for the merchant means less for you."

Not necessarily, it could mean that instead of going to Bill's Local Gas Pump that only accepts cash, you fill up at the Wawa that accepts your credit card. You have to spend the money either way if you need your car to get to work. Bill's Local Gas Pump loses the $60 in business, but you still had to spend the money either way.

[gooddecisions]

Your logic is flawed.