Randomperson1362 t1_j2adwt7 wrote
Credit cards have fees. If you pay cash, the merchant avoids these fees. A cash discount also requires you to enter the store (where they sell things like soda and candy, that have a much higher margin than gas)
Shorthawk t1_j2an795 wrote
The snack bit is big, never underestimate how much companies will push the snacks.
ImReverse_Giraffe t1_j2bqwfh wrote
Because they actually make money on the snacks. They make a few cents per gallon, and that all depends on how many other gas stations are around.
EightOhms t1_j2c6iue wrote
I've heard of gas stations where they make more profit on a single cup of coffee than they do on 8 gallons of gas.
aknabi t1_j2dn35k wrote
Coffee is pure margin
dl__ t1_j2d7f9x wrote
Just like movie theaters
Jormungandrs-bite t1_j2buzr5 wrote
You may or may not know,.
But in the US. It's illegal to charge more for credit cards. But it's not illegal to give a discount on cash.
Manyelynn13 t1_j2cl1ps wrote
It's not illegal in the US to charge a credit card surcharge in all but five states.
EightOhms t1_j2c78ar wrote
Discounting cash sales is literally charging more for credit card sales.
So no it's not actually illegal because gas stations do it all the time.
The truth is this isn't a legal question but rather has to do with the service agreements the gas station signs with the credit card processor. For most stores, the CC processor forces stores to charge the same for cash versus credit cards. However they make exceptions for super low margin businesses like gas stations who literally cannot afford to pay the transaction fees and still make money on gasoline.
Not-your-lawyer- t1_j2cdbjc wrote
...not the point.
I mean, they're at least partly wrong. Only a few states in the US—five, I think?—ban passing on processing fees to the customer. But what's banned is not having different prices, it's charging a fee on top of the listed price.
It's basically a truth in advertising rule, though it's weird that we made it for credit cards and not for sales tax. Anyway, the idea is that credit card surcharges feel like a penalty and cash discounts feel like a reward, even if there's not practical difference between the two at checkout.
Legal-Mammoth-8601 t1_j2fnfcx wrote
Is it literally "Illegal" or just against the terms of the agreement with the credit card processor?
wavform t1_j2ap7tq wrote
In addition, all these card companies have increased rates dramatically over the last 2 years. This (Cash v. Card pricing) will be the norm soon across most vendors that use cards daily. Most restaurants in my area already do this if they are not corporate backed to absorb those extra fees.
152centimetres t1_j2btkxz wrote
netflix explained: credit cards also mentions how if enough customers are using credit cards they have to raise the prices for everything to account for the fees
make it easier for everyone - use cash or debit!
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