Gas-Saving Moment of the Day: Pay Cash

This gas-saving tip does not mean you should always pay cash, so pay attention.

Some gas stations are offering reduced gas prices for customers who pay in cash. This is because when you pay with a card, the credit-card company is skimming 12-15 cents a gallon off the top, which comes directly out of the retailer's pocket.

Therefore, it makes sense for them to offer a 7 to 10 cent discount to customers who pay cash. Again, this tip is only good for gas stations that offer the discount. If not, then you're just saving the station a few cents rather than yourself.

Therefore, go to the ATM before you fill up. Pay in cash and save yourself a few bucks whenever you can.

Related:
More Gas-Saving Moments of the Day (KickingTires)

Comments

[J]

It is not a wise move on their part at all.

Imagine, assuming they have only 1 customer to fill up every hour(they are opening 24/7), everyone filled up for let's say 35 bucks.
By the end of the day, they will have $840 in cash.
Let's do the math again with more customer this time.
3 customers/hour, $35 per fill up. They will end up with $2520.
Of course, those are not up to the realistic numbers at all.

They are putting themselves at risk of robbery.
Reasons are quite simple:
a) It is easier to rob a gas station than a bank(usually).
b) Gas stations usually open 24/7, meaning that someone can rob them at 3am.
c) With today's economy, where else can robbers rob for 4 digit amount of cash?

[valero]

That's assuming that the banks aren't taking it out of your hide on ATM fees. At a $1.50 as a pretty standard fee you'll have to buy between 15 and twenty gallons to make up the difference, more if your bank really puts the screws to you.

[J]

Plus, some people uses cash reward card for gas, and they get somewhere ranging from 2% to 5% regularly.
10 cents just won't cut it.

[l]

I am suprised that this does not violate the gas station's agreement with the credit card companies.

[DL]

i drive 45 miles a day, 6-7 days a week, to and from work. saving 10 cents a gallon in my 29mpg car means saving about a dollar a week. balanced against the risk withdrawing extra cash and carrying more cash around, it's not worth it.