Credit cards have long been a popular and convenient way to pay for most things (including filling in at a gas station), and there are benefits to using one thing on the pump, such as bonus points or cash purchased from buying fuel.
However, if you are not cautious, you tend to pay for gas with a credit card and may end up spending more money. This is Pat Igo, Palm Beach Gardens, Florida, has recently learned the tough road.
Like many consumers, Igo has noticed an increase in gas stations that buy credit card purchases compared to cash purchases. Worse, gas stations in some areas even try to hide the extra fees of credit cards.
In most states, it is legal for businesses to impose surcharges on customers who pay via credit card. One of these states is Florida.
The only requirement is that the company must notify customers of these surcharges in advance. However, some Florida gas stations are testing the concept to unfair restrictions.
Igo told WPTV News that his company, North County Coluting, owns a fleet of 12 trucks and pays about $3,000 for their business. Recently, he noticed some pumps that shocked him when he went to a truck.
"I noticed this little box at the bottom," Igo shared with WPTV. “And it doesn’t match the price on the street.”
Igo said a small sign on the pump indicated that those who paid with a credit card would pay $1 per gallon, so he asked the station manager if it was wrong. “He said no,” Igo said. "'I can do whatever number I want.' So I walked out."
Reporter Dave Bohman investigated the matter and found that many local gas stations pay a dollar more than cash for credit cards. When he started asking questions, both stations lowered the surcharge to 90 cents per gallon.
Boman also contacted consumer attorney Thomas Patti to see if the practice is legal. His answer? Yes.
"If they say 'listen, we'll offer you discounts on cash-based services and we'll charge you a standard price for your credit card, which seems like a legal way," Patty said.
The Florida Attorney General's Office also confirmed to Boman that the practice is legal. But Patty confirmed the price difference that gas stations must disclose to consumers - the problem is that some stations do not advertise the price difference of large prints on their road signs. Instead, they post it in small prints on the actual pump.
Meanwhile, Igo now ensures that his staff don't use a $1 per gallon gas station for credit cards. He also believes that stricter rules should be formulated to avoid consumers being deceived.
“If you use a credit card, there should be a law that shows what they will charge you,” he said.
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In 2023, ordinary drivers in the U.S. spent $2,449 on natural gas, according to the Bureau of Labor Statistics. If your spending is similar, some changes can help you save some money on the pump.
First, use an app like GasBuddy to compare the price of gasoline in your area. Second, be aware of the price differences at local gas stations and aim to avoid those price differences that charge credit card surcharges – but don’t just rely on the big signs you can see from the street. Instead, pull up to the pump and read the beautiful print.
Of course, if you want to avoid over-spending gasoline, paying cash is also an option. However, if you have a larger vehicle, it may not always be feasible and you can bring enough cash to fill your tank.
A recent YouGov survey found that Americans prefer to pay for gasoline with credit cards than any other method. However, if you pay via a debit card, you may not face a gas surcharge, so this may be a reasonable option. Additionally, YouGov found that debit cards are the second largest payment method consumers use in pumps.
Try to avoid avoiding gas stations at rest stops or along major highways, as you may pay a higher price for convenience. Follow these lines, keep an eye on your tank so you won't be forced to fill in the nearest station just because you're running out of gas.
Finally, the more efficient you are in driving the vehicle, the less fuel you may be using. To do this, try not to speed up, make sure the tire pressure is not too low, and consider using the cruise controller for longer road trips.
With a few adjustments, you can set yourself up to stretch each subsidy and enjoy some savings along the way.
This article provides information only and should not be construed as advice. It is without any warranty of any kind.