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Back to As Gas Prices Soar, Station Owners Offer "Cash" Incentive to Bypass Credit Card Companies (MA, V)
Back to As Gas Prices Soar, Station Owners Offer "Cash" Incentive to Bypass Credit Card Companies (MA, V)
Back to As Gas Prices Soar, Station Owners Offer "Cash" Incentive to Bypass Credit Card Companies (MA, V)
Back to As Gas Prices Soar, Station Owners Offer "Cash" Incentive to Bypass Credit Card Companies (MA, V)
at Jul 27, 2009 03:29 PM Different Prices = Merchant Violation Check out this online form at MasterCard's web site: http://www.mastercard.com/us/personal/en/contactus/merchantviolations.html Apparently it is a "Merchant Violation" to charge two different prices for cash vs. credit. Note the check boxes at the bottom: "The merchant/retailer is adding a charge for using your MasterCard card." Report the merchant if they are accepting MasterCard.
at Jul 24, 2009 01:42 PM cash price What most consumers don't realize is that the merchants cannot choose which credit cards to take and not take except by generic Visa/mastercard, Discover, or AMEX. The Credit card companies are pushing these new bonus cards with 1-3% cash back discounts but are paying for them by increasing the fees they charge the merchants who accept them. If we price to be fair to everyone, we get dinged extra for these cards, but we get no recognition from the customer who thinks his wonderful credit card company is doing him the favor. Remember when you use these cards - IT IS THE MERCHANT YOU BUY FROM THAT IS GIVING YOU THAT EXTRA 3% WHETHER HE WANTS TO OR NOT. His only choice is to stop taking credit cards altogether.
at May 9, 2008 11:54 AM Violation As noted, this was common in the 80's. It died not because consumers used cards anyway, this disappeared because credit card companies collectively dis-allowed in their contracts, the station owners ability to charge different prices. People were refusing to use cards and paying cash to get the lower price. It's unfair in my view because it forces cash customers to subsidize card users and eliminates market pressure on credit card interchange fees. If the credit card is truly worth the convenience, user should be willing to pay the extra fee. Europe allows charging card users extra, and there are bills on the table to allow it again in the US. With strong opposition from credit card companies of course.
at May 8, 2008 10:01 PM Its not a violation -- Its business This a a trend that I have been seeing in Valero gas station in the San Fernando Valley. For a nickle per gallon its pretty dumb if you ask me. My car can take 17 gallons max. I fill up once every 5-7 days. 17 X .05 = .85 cents. PER FILL-UP 7 * .85 = $5.95 per MONTH $5.95 * 12 = $71.40 per YEAR If the "discount" was 4-5 times that I would be a happy camper. But this is not realistic. I assume CC companies charge 2-3% per transaction. Avg. gallon of gas in California is $4 4*.02 = .12 cents surcharge from CC company per gallon. It does VERY little to help my pocket. It only looks good to a consumers eyes because they like to pay the least they can.
at May 8, 2008 04:19 PM Gimme a break! I would have to find an ATM, get charged $1.50 to $3.00 just to pay in cash, as well as go inside and deal with the usual uncaring moron running the register? I'll pay with my Visa check card at the pump thank you very much!
at May 8, 2008 02:46 PM blah blah blah Are you around 5 years old or what? It used to be (in the 80s) that everywhere offered a different price for cash or credit. the 90s saw that start disappearing as it became too much for consumers to deal with. 1 number, easy. gotta cater to the laziest SOBs out there. Clark - is that OPEC jr. or some other nobody. If Exxon or BP or Shell or a real player starts doing it, then we'll see a problem for V & MA - gas stations are fee-crops for them because the process is 1000 times faster - don't have to go inside and wait and then pay, then go back inside and get refund if I put too much money, or risk forgetting i put more in and completely losing money. With CC, it's just much more accountable and accurate than cash.
at May 7, 2008 07:47 PM cheaper "cash" price goods can be cheap, prices are low
at May 7, 2008 03:39 PM Report them - It's a Violation I would report them if I saw such as sign. Let them force everyone to use cash if they like it that much.