Gas stations offer discounts for cash

I'll preface this by stating that IANAL. My understanding of the law is:

Surcharges for using credit cards used to be illegal due to the Truth in Lending Act, but this expired in 1984. Since then, several states have enacted laws that made such practices illegal (California is one of them). The major credit card issuers also do not permit such surcharges according to their merchant agreements, so most of the time, anyone charging a surcharge is either violating the law or their agreement with the card issuer. Discounts for cash are allowed.

Local Chevron (the one near Sunnyvale Fry's Electronics) gives a $0.09/gallon discount for cash. A surcharge for using an ATM card is legal.

 

They have been doing it here in NJ as well. I only see it in select stations though.

 

I'll second the post about it being illegal or at least against the terms of the credit card companies. If you caught at this the credit card companies can shut off your processing, or tack on huge penalties.

Tom

 

Most of the CC companies have a loophole where offering a cash discount is OK. You just cannot have a surcharge for using a credit card.

 

Here in Indiana they have a sign that shows both it flashes back and forth. This has been going on for awhile ...but there are also gas stations that do not take credit cards at all anymore!

 

I have a Conoco/Phillips 66 Mastercard. 3% discount for purchases at their branded stations, 1% back for purchases everywhere else. It helps that the Phillips 66 station near home is usually the cheapest around, same price for cash/credit.

The Sam's Club near me requires you to pay by credit/debit card. They won't take cash/check/etc.

 

i am in california, and i have to go to small claims court in 2 weeks about this !

i went to a convience store the clerk had a sign that said there was a 35 cent fee for using credit cards, and when i told him about what california says, he would not budge so as per section 1748 i wrote a certified letter to the business asking them
for my 35 cents back, and when no one responded in 30 days, i sued them! heh

i am asking for $12 for the cost of the merchandise + 3.00 certified letter fee + .35
credit card fee and $30 for the court filing costs and $50 for the process server!

the directions on the form say do not list your court costs so i didnt

visa headquarters wrote me back and basically said 'talk to your bank not us , we wouldnt have records' and 'that it was not legal and its under investigation'

i got scans of the receipt and pictures of the sign on the register and i made two copies one for myself and the "discovery" copy so i am all set

section 1748.1 doesnt say 'oh talk to your bank' it clearly says you must write a certified letter to the business demanding a refund, and if they ignore it then they are responsible for 3 times the damage and court costs

 

Will I pay more to pay at the pump and keep my children safely in the car? I don't even have to think twice about that.