Why is it legal to charge more money to use a credit card at the gas station?

A gas station advertises $1.99 on their sign for 87 octane, and $2.09 if you plan on using a credit card. Why is this not against the law yet? Both forms of currency are legal tender, and charging someone more money to use plastic versus paper is absurd.

I've heard the excuse "well it costs more for the business to have a credit card machine" and that answer is bull. My former boss used to own a gas station, and you wanna know the real truth? It's for tax purposes. If you entice people to pay in cash, it's much easier to make that money "disappear" and lower your tax burdens. All electronic payments are kept on a secure server where a reconciliation will show every single transaction.

So why is this legal?

BOYCOTT ALL GAS STATIONS THAT CHARGE MORE TO USE CREDIT!!

LaVere B

Well, your boss was feeding you a line. I own my own business and it costs me every time I have to run a visa, mastercard, discover card. The company that installs the machines and runs the transactions gets a piece of the action. Their employees do not work for free, their machines cost money to buy, install and maintain (they don't install and maintain themselves)...and the credit card companies have to make some money to stay in business.

timothy p

credit card companies charge 3.5% to the sellers on all transactions. If you pay with credit it costs the gas station. It is usually illegal to charge more for credit but they get around it by selling at a discount if you don't use credit.

*Chloe...x*

Its perfectly legal as long as they make it clear.

jakflak

It costs approximately 2.5% more to for a business to run a credit card.

It's legal because you can take your business elsewhere or pay cash. It's your free choice.

ICE 'em

Some have to pay more to process through credit cards. I pay with my debit out of my checking account so this does not affect me. If it did, I would never buy gas at one that charged more.

coguy

Believe me I share your irritation! But I have no idea where you get the idea that business owners want cash vs credit cards for tax purposes. Please check the facts next time before you rant! I helped my boss set up an account to accept credit cards. The credit card companies charge the business owner 1.5 to 4% of the total sale for the convenience of having their customers pay with credit cards! I DO BELIEVE THAT SHOULD BE ILLEGAL!
In my opinion - as much interest as the CC companies siphon off us as customers, it is wrong to charge business owners on top of that!

Lionheart Â®

A station near me charged 5 cents less for cash. That lasted for about three months because the station across the street took the charge customers away from them.

0bamarx

No, they are passing on to you the fees chared bt the CC company. If you only knew that business income and payroll taxes are passed on to you too.

mom of 3 and done!

You just caught that, been doing that for years. There's alot of situations we the people can change if we only stuck together, but people will not do it.

Flo

man that is such a great question
http://answers.yahoo.com/question/index;_ylt=AnuVBHcXUyxQ9h14fCz3n7nsy6IX;_ylv=3?qid=20090426183919AAwL7jR&show=7#profile-info-wnhSSdYEaa

answer

Joshua B

YEAH!

hoser

Visa & MC charge the merchant 1.69% of the purchase price to the merchant. Anything above that is added-in for the person/company selling the credit card contract to the business owner. Typically it's another .5 to 2% so the merchant has to pay that also to the bank handling the credit card contract. Some where in there that bank pays Visa/MC their 1.69% of sale price. If memory serves, I thought it was illigal for businesses to charge more to cover these fee's.....

Enter Your Message or Comment

User Name:
User Email:
Post a comment: