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Credit cards have long been a popular and convenient way to pay for most things — including filling up at the gas station — and there are benefits to using one at the pump, such as bonus points or cash back on fuel purchases.
However, if you’re not careful, paying for gas with a credit card could end up costing you more money. That’s something Pat Igo of Palm Beach Gardens, Florida, recently learned the hard way when he went to fill up at the pump.
“I noticed this little box at the bottom,” Igo told WPTV news. “And it didn’t match the price that was out on the street.”
Igo, like many consumers, had noticed that some gas stations are charging more per gallon for credit card purchases than cash purchases. What’s worse, some local gas stations even try to hide the extra charge for credit cards.
In most states, Florida included, it’s legal for businesses to impose a surcharge on customers paying by credit card. However, businesses must inform customers of those surcharges ahead of time. In that regard, some Florida gas stations are pushing the limits.
Igo told WPTV News that his company, North County Cooling, has a fleet of 12 trucks. Fueling them all costs his business about $3,000 per month. He recently went to fill up one of his trucks when he noticed something that shocked him at the pump.
He says a small sign on the pump showed that those paying with a credit card would pay $1 more per gallon, so he asked the station’s manager if that was an error.
“And he said no,” Igo said. “‘I can make it any number I want.’ And so I walked out.”
WPTV News reporter Dave Bohman looked into the matter and found that a number of local gas stations were charging $1 more per gallon for credit card payments than cash. When Bohman asked consumer attorney Thomas Patti whether the practice was legal, Patti confirmed it is, but that gas stations must disclose the price difference to consumers. Yet, some stations advertise this in fine print on the pump, which can easily be missed while filling up.
Igo now makes sure his crews don’t use gas stations that charge $1 more per gallon for credit cards. He also thinks there should be stricter rules in place so that consumers don’t get duped.
“There should be a law showing what they’re going to charge you if you use a credit card,” he said.
The average U.S. driver spent $2,449 on gas in 2023, according to the Bureau of Labor Statistics. If you’re spending a hefty chunk of cash on gas, it’s worth considering some ways to save at the pump.
First and foremost, pay attention to price differences at local gas stations and aim to avoid those that impose a credit card surcharge — and, like Igo, be sure to read the fine print.
Alternatively, you could use a platform such as the Upside cash-back app for your essential purchases, like gas, groceries and dining. Once you download Upside’s app, you can claim cash-back offers at locations near you. For instance, users can earn up to 25 cents per gallon back on gas, taking some of the bite out of pump sticker shock. You can also get a bonus 25 cents off per gallon with code MONEYWISE25 on your first transaction when you sign up.
How it works is simple: Claim the offer in-app, shop as usual, then purchase and pay with a linked credit or debit card. You can then cash out your earnings directly to your bank account, PayPal or a gift card.
From here, it could be a good idea to take that extra money and invest it to give yourself a bit of extra resilience. The best part? Starting to save for your long-term financial goals can be easier than you think.
Finally, the more efficiently you drive your vehicle, the less fuel you’re likely to use. To that end, try not to speed, make sure your tire pressure isn’t too low and consider using cruise control for longer road trips. Driving at a steady speed typically improves fuel efficiency, meaning you use less gas per mile.
And make sure you aren’t overpaying for essentials, such as car insurance. OfficialCarInsurance.com helps you switch to a more affordable auto insurance option within minutes. Simply provide some information about yourself and your vehicle, then compare quotes from trusted brands like Progressive, Allstate and GEICO — with some offers as low as $29 per month depending on factors like the make and model of your car, and your driving history.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
