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So I'm in California temporarily, and I've noticed a strange thing. It happens at ,many small stores but mostly gas stations here. They charge less for gas if you buy with cash, or they don't take credit cards and have a on site ATM that charges you a pretty hefty fee.

Back where I'm from (good old Cleveland OH) I've never seen this. Almost every business there takes credit cards. Owning two businesses, I can see why you would want to cut the credit card companies out, but the inconvenience factor would really hurt also.

I didn't even think this was legal, and maybe it's not in Ohio. Anyone else familiar with this?

I passed through Ohio (near Toledo recently) and the gas station there charged more for a credit card, so it isn't an Ohio thing. The reason, I am told, is that it was that independantly own stores pay a fee to credit card companies in order to have access to be able to accept them. This is also why some places have a minimum purchas amount in order to buy with a credit card. Large corporate chains supposedly also have this, but due to volume, it is dispersed in their franchise fees and their corporation (like McDonalds, Shell, ACE etc instead of mom-n-pop store) itself might get special rebates from the credit card companies they pay to be able to get business from making available. It's about volume.

If by hefty fee you mean around $5? It's not unusual, a lot of ATMs charge a fee of some sort. However, paying less if it's through cash and refusing to accept eftpos sounds a bit shady.

EDIT: Is it just credit cards then?

It is perfectly legal. The fees that companies have to pay for credit card transactions are going up up up. So they give you a discount, so you pay in cash, so they don't have to pay the higher fees.

mister robouteo wrote:I passed through Ohio (near Toledo recently) and the gas station there charged more for a credit card, so it isn't an Ohio thing. The reason, I am told, is that it was that independantly own stores pay a fee to credit card companies in order to have access to be able to accept them. This is also why some places have a minimum purchas amount in order to buy with a credit card. Large corporate chains supposedly also have this, but due to volume, it is dispersed in their franchise fees and their corporation (like McDonalds, Shell, ACE etc instead of mom-n-pop store) itself might get special rebates from the credit card companies they pay to be able to get business from making available. It's about volume.

Really? I have never once seen this in Ohio, anywhere else for that matter. I've seen places that don't accept credit cards before, but never places that don't accept them, then have an on site ATM.

I own a bar. Actually it's not illegal, but the contract you sign with the credit card companies does not allow it. You can suggest it ,and put up the sign, but the company then can take your machine. As a rule this never happens!

I know all about how much it costs to have a credit card machine, but there is also the convenience factor that customers will go to another bar as a good amount of people don't walk around with cash anymore.

The reason for this might be that credit cards will actually charge interest to the companies who use "pay at the pump" service, so while they only make 1 cent or so for every gallon, that suddenly disappears, giving them no profit. If people pay with cash, then then get their profit.
As far as the ATM charging fees, that's set by the bank, not the gas station. I think it's legal, as you don't have to use their machine, gas is not a necessity (technically), and you're not required to use it, and most ATMs (I've never heard of one that disobeys this rule) waive their fees for members of the bank.

micahaphone wrote:The reason for this might be that credit cards will actually charge interest to the companies who use "pay at the pump" service, so while they only make 1 cent or so for every gallon, that suddenly disappears, giving them no profit. If people pay with cash, then then get their profit.
As far as the ATM charging fees, that's set by the bank, not the gas station. I think it's legal, as you don't have to use their machine, gas is not a necessity (technically), and you're not required to use it, and most ATMs (I've never heard of one that disobeys this rule) waive their fees for members of the bank.

Many of these ATMs are not bank affiliated. I'm not sure how they work. I know I've been approached by ATM companies to put them in my bar where I would get a commission form each transaction, but I never thought to then get rid of my credit card machine. I guess it makes sense if you are greedy, but it's terrible customer service. I would never become a regular at such an establishment.

Actually the fees for credit card charging is part of the reason why many small business owners refuse to accept some cards...

This actually used to be really common back in the eighties, as I recall. I remember it used to be a service gas stations would use as a selling point- "Same price, cash or credit".

Not illegal, but there are some credit card companies that make it a condition of accepting their card that you cannot charge a higher fee for using the service.

Also, my FLGS gives me a 5% discount if I pay cash, so I always make sure to stop by the bank if I'm going to buy anything. It's a nice bonus.

Mannahnin wrote:This actually used to be really common back in the eighties, as I recall. I remember it used to be a service gas stations would use as a selling point- "Same price, cash or credit".

You still see it in bad neighborhoods today because there is a natural profit incentive arising from certain credit systems and their tendency to approve transactions that aren't under the credit limit, creating an opportunity to dispute payment.

Actually the fees for credit card charging is part of the reason why many small business owners refuse to accept some cards...

Yeah, we only take visa and mastercard, discover and american express cost extra.

I live here in California, and it's pretty common, usually an extra ten cents per gallon of gas. Since I don't pay for gas, I don't really care.

Andrew1975 wrote:

Actually the fees for credit card charging is part of the reason why many small business owners refuse to accept some cards...

Yeah, we only take visa and mastercard, discover and american express cost extra.

Same thing for my father's business, I believe, along with many others in our local small business community.

I know of at least one gas station in Cleveland that's been doing this for years now.

Polonius wrote:I know of at least one gas station in Cleveland that's been doing this for years now.

Really? I've never seen it there. I rarely carried cash in C-land

Andrew1975 wrote:

Polonius wrote:I know of at least one gas station in Cleveland that's been doing this for years now.

Really? I've never seen it there. I rarely carried cash in C-land

The place on Clifton, just east of 117th has been doing it since I moved to Lakewood.

Polonius wrote:

Andrew1975 wrote:

Polonius wrote:I know of at least one gas station in Cleveland that's been doing this for years now.

Really? I've never seen it there. I rarely carried cash in C-land

The place on Clifton, just east of 117th has been doing it since I moved to Lakewood.

You mean on the south west corner of 117th and Clifton across from the CVS? They used to take credit cards and i don't remember them charging different, but i haven't been home since October. I used to stop there all the time on my way to the 5 o'clock.

IIRC credit card companies pocket something like 2-5% of your purchase which comes out of the business' profit.

Some states don't allow businesses to charge less for cash but others do. I see lower prices for cash from time to time in Virginia.

I remember when my grad school announced they'd charge more for paying tuition by credit card, I was not happy. I loved charging $10k, paying it all, and keeping the miles.


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Your Friend Doctor Robert wrote:Since I don't pay for gas, I don't really care.

???

There are a few stations in north Texas/Oklahoma that do the same thing. Just thought I'd throw that out there.

Wait wait wait.... you guys have to pay to get your money...?

America is weird.

I'm so glad we just use use bank/pin cards XD

Soladrin wrote:Wait wait wait.... you guys have to pay to get your money...?

Some 3rd party ATM's in the UK charge you to withdraw money, though most ATM's on banks etc let you withdraw it for free (even if it is not your bank).

Here you never have to pay for it, only restriction is that you can only withdraw money from another bank's atm once a day.

Mannahnin wrote:This actually used to be really common back in the eighties, as I recall. I remember it used to be a service gas stations would use as a selling point- "Same price, cash or credit".

That's correct and it clearly is perfectly legal.

Does the person who asked this initial question realize that credit card companies take a percentage of the sales when customers pay with those credit cards? Businesses gain volume of sales by accepting them, especially for large items for which people would not have the cash on them, but it is a money-saver for businesses when people pay with cash instead of credit cards. It's why some small businesses are cash only, it helps them keep their costs and their prices down.

BrassScorpion wrote:

Mannahnin wrote:This actually used to be really common back in the eighties, as I recall. I remember it used to be a service gas stations would use as a selling point- "Same price, cash or credit".

That's correct and it clearly is perfectly legal.

Does the person who asked this initial question realize that credit card companies take a percentage of the sales when customers pay with those credit cards? Businesses gain volume of sales by accepting them, especially for large items for which people would not have the cash on them, but it is a money-saver for businesses when people pay with cash instead of credit cards. It's why some small businesses are cash only, it helps them keep their costs and their prices down.

If you read the thread you would know that I understand all of this. Is seams strange to me to not accept credit cards and yet still have an ATM machine that charges an exorbitant free. I wont use such places and I can't figure out why anyone would, it seams like poor customer service and poor business practice to me. I always take by business elsewhere.

The credit card companies don't charge that much, I know I have the set up! Especially at a gas station where the average purchase had to be around $50.

Bank ATM fees are ridiculous, you are saving the bank money by using the ATM instead of a live teller.

I'll say, I do miss how some things are run in ol' Europe. It was nice to have a cell phone with no plan, and no money on it, and still be able to receive calls and texts.