I was intrigued today when I learned that my local convenient store is giving people some money off of their price for gas if they pay with cash versus using a card. If you pay with a ten they will bump you up to 10.50 worth of gas, which is pretty good. It got me think as to the reason, though, and I was really not sure. Clearly they just want to have cash, but I am not sure why. It is a pretty good way to get something extra for your money though. Does anybody else see this where they live?
@rz3300 I've seen that at certain stores. I'm pretty sure it has to do with credit card fees. I'm not sure if they have to pay fees on debit cards. I don't believe they do, but from what I've heard, credit card fees can be quite expensive, and that could be prohibitive, especially for small stores, so perhaps that's the reason they give an added incentive for cash payments.
I think cards are always the way to go, even though, hypocritically, I normally don't bother with them. Anyway, possibly too many people are taking advantage of card programs - prompting owners to try to encourage cash. However, I still cannot understand how they are losing money with cards. Note, the idea behind cards, pretending for a moment you're a service station owner, involves the fact the people will be buying gas at your station nearly all the time. Of course, if they're buying it at your station all the time, then you're making more money off them, even if they're paying less.
I have never seen this offer in my area, however, some merchants try to encourage the use of cash as much as they can and. There are instances where credit or debit cards are not accepted under a certain amount. I believe this practice is being applied because they are seeking to eliminate credit cards fees as much as possible.
We also have that here, one gasoline brand is giving a rebate voucher when you pay in cash. Another brand have the rewards card where you earn points for each liter you buy. But the best is Unioil which is connected to S&R supermarket. With an S&R receipt, they give you a discount of 3 pesos for each liter. Our big car usually fills up to 50 liters and that’s a lot of money for a discount.
It's like @Diane Lane said. They want to avoid so many fees from the use of credit and debit cards. They have to pay a small fee every time one is used, and it adds up over time. That's also why some places won't allow you to use a card unless you spend the minimum amount (often, around $5.00). It's just not worth the fees, otherwise. Yes, we have that here too. I don't usually carry much cash, so I'd have to stop at the bank before going to one of these stations. It is a better deal though. Since the bank is right across the street from one such location, it's not a big ordeal. I just don't always thin of it. I don't usually get gas here in town anyway, since it's cheaper elsewhere. What I don't like about some of these gas stations is that they don't post the additional information. The sign states one price, but that's the cash price only. You don't find out until you've pulled in and our ready to pump, if you even notice it then. They should be more straightforward with it, in my opinion. If that happens, I leave and get gas someplace else.
