Is it LEGAL for gas stations to charge MORE for gas when using a credit card then when using cash?

Question

I don't know if this depends WHERE the gas station is located, so I'm asking SPECIFICALLY about gas stations in Suffolk County, Long Island, New York...does it depend on what town/village it's located in? If so, then I'm asking specifically about the Village of Islandia...

Answer 1

The issue is the sign.

Back when gas companies originally did this (the 1980s), the rule quickly became that the if the sign said $3.50 a gallon, then that was the credit card/pump price.  If you paid cash, you could have a discount (say 4cents a gallon).

What they can't do is post $3.50 for cash and then when you pull up to pay, say, oh, credit card, that's $3.60.

Answer 2

no it is not legal, it must be at advertised price

Answer 3

It's very legal. Infact most gas stations charge more for credit cards rather than cash.

Answer 4

In most states it's legal, but ---I'm just talking off the top of my head here-- I think some states may be thinking of requiring stations to charge the same for all purchases, or may have already done so.  You may want to ask a dealer in your state about state regulations.

Answer 5

Nope Arco does it. Thats just the scam of using a credit card. Since everyone does it,they profit off it. But its not illegal, should be though

Answer 6

Usually it's labeled as discount for cash...

any business has to pay a processing fee to the CC company to process the transaction...

If you pay cash.. there is no fee, obviously...... most places that fee is figured into the price,however you pay....

Answer 7

Credit card companies charges the merchant for every transaction,So some Gas stations offers less price if paid in Cash(to avoid the commission to credit card). But you are looking the other way that 'they are charging more for Credit cards.'

Answer 8

I found a nice online list of New York local credit card resources. http://www.howtofindcreditcard.com/New-Y... Try calling a local service and they most likely answer your questions.

Answer 9

yep its legal

Answer 10

Most credit card companies have in their contract that, if you accept their credit card, you may not charge an extra fee, minimum or maximum fee, or preference to credit cards or cash.  Therefore, it would be a breach of contract to charge you a fee, making it illegal.  It is also a breach of contract to say you need to spend at least $5.00 to pay with a credit card.

Answer 11

For the most part this is a legal practice.

There have even been cases where gas stations have decided to STOP accepting Credit Cards.

The issue is with the fees that Credit Card companies charge the stores.

These Gas Stations are running on a very very tight margin.  Even though we as consumers are paying record prices at the pumps...the actual Gas Station sees very little of this money.  

The majority of this money goes to the Gas Companies and the U.S. Government.

As an example...for every $1 you spend on Gas, the station itself may see 5-8 pennies.   Now the Credit card companies are charging 3-5% for Credit Card sales...in other words of the 8 pennies, the credit card company will take 5...leaving the gas station with 3.

Now this is if the amount is below an amount such as $50.00...but if the amount goes over, that percentage can increase.  In many cases the fee gets to be so high that the gas station is not only no longer making a profit, but now are paying above and beyond, thus LOSING money.

If you have any questions regarding this information, then please do a search for Gas-Credit Card Charges or check out the following assiciation (NACS or PEI)  National Association of Convenient Stores or Petroleum Equipment Institute.

Just a note,  I am not affiliated with any of the above,  I am a consumer who's job used to be around the sales support of hardware that is integrated into Gas Pumps.  Thus I have learned more about this industry than I realized.

The folks hardest hit by the recent gas issues are the actual Gas Stations that you and I use.  Unfortunately they are just middle guys with virtually no control of how to handle the problem.

The real folks to complain about are the Credit Card companies themselves...They are charging way more than is needed to process credit cards, but most of us consumers have very little vision as to how much they are making through this.

Answer 12

It is actually against the law in the "state" of New York to add a surcharge for using a credit card.

Some states have no laws concerning surcharges and other states do.

The following list is the states that have laws against it:

California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma, Texas.

In all states it is against credit card policy for a merchant to add surcharges.

Other posters mentioned merchants giving discounts if cash is used. It is not illegal to give a discount below the advertised price if cash is used. It is illegal to charge more than the advertised price if a credit card is used.

For example: If the gas station has a price on their signs/pumps saying their gas is $3.50 per gallon:

You pay with a credit card and discover that you had not been charged $3.50 but $3.51 (or so) per gallon.

That would be what is considered a surcharge and is illegal in your state (plus against credit card policy).

OR

You pay cash and discover that they have only charged you $3.49 (or so) per gallon, that is the discount for using cash and is not illegal.

(if you use a "debit" card, it would not be illegal for them to charge surcharges)