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Is This Legal?

Discussion in 'General Automotive Discussion' started by Coolhand, Oct 5, 2007.

  1. Coolhand

    Coolhand Karting

    Mar 30, 2007
    193
    Overland Park Kansas
    So the other day I stopped at a BP gas station in Overland Park Kansas to buy some gas. I observed something that somehow I don't think is legal. They were selling premium grade gasoline at $2.80 per gallon if you paid with cash, and $2.83 per gallon if you paid with a credit card. I've never seen anything like this before where gas is one price if you use cash to pay for it, and the same gas is more expensive if you use a credit card to pay for it. I'm not a lawyer, but somehow that just doesn't seem right. Anyone care to enlighten me?
     
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  3. John Se

    John Se Karting

    Mar 15, 2005
    201
    Scottsdañe
    completely legal, a place I use will charge .45 per transaction
     
  4. 1ual777

    1ual777 Formula 3

    Mar 21, 2006
    2,431
    Orange County, CA
    So what is the issue? The guy is just trying to drum up some business; nothing wrong with that.
     
  5. justhrowit

    justhrowit Formula 3

    Feb 12, 2004
    1,020
    Dallas
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    Jay D.
    I don't think i is illegal, however, from what I understand Credit Card agencies do have agreements saying that retailers can't do this. They do have the right the pull their machines out the retailers for breach of contract. This can obviously hurt retail business because of how often credit cards are used. I may be off here, perhaps somone knows better than me.

    J
     
  6. AMA328

    AMA328 F1 Rookie

    Nov 12, 2002
    2,518
    ABQ-67me68-OKC :)
    yupper, you're right - cc co's have merchant terms prohibiting cash discounts.
    However, as you see, some places do it anyway.

    You oughta try calling visa/mc and turning 'em in. Supposedly, the cc co's jump on this sorta thing el pronto.
     
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  8. branko

    branko F1 Rookie
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    Mar 17, 2003
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    I've seen it here also. The credit card company's charge 3-4%, so this is there way to make up the difference.
     
  9. Ingenere

    Ingenere F1 Veteran
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    Dec 11, 2001
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    Fairly common practice, and if you have ever been an acceptor of credit cards and the 3-4+% fees......fully justified. I have no term in my agreement that I can't give cash discounts. This is still a relatively free country and we can charge or discount as we please. The marketplace decides our success, not governments
     
  10. Protouring442

    Protouring442 F1 Veteran
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    Sep 5, 2007
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    One Stupid SOB
    Discount for cash.... nothing new about it, been around for quite a while. Exxon was a biggie in the discount for cash deal, even their signs read CASH PRICE. Now they've done away with it, but it was a big thing for a while.

    Shiny Side Up!
    Bill
     
  11. SrfCity

    SrfCity F1 Veteran

    Nov 1, 2003
    9,842
    Orange County, CA
    They do it out here too. The oil co's hate having to report all the CC income ;)
     
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  13. Darolls

    Darolls F1 Veteran
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    Jul 2, 2003
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    I wish I could buy gasoline here at those prices, either way.
     
  14. etip

    etip Formula 3

    Apr 4, 2004
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    It's the way every gas station used to be in the 80s with Cash and Credit prices.
     
  15. agup48

    agup48 Two Time F1 World Champ

    Apr 15, 2006
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    What if you use a Debit card, thats like cash, but in a card form.
     
  16. menoy

    menoy F1 Rookie

    Mar 12, 2005
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    I think it doesn't matter on what kind of card. The card companies take a % of the card made transactions.
     
  17. Protouring442

    Protouring442 F1 Veteran
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    I'm not sure... My father owned an Exxon station in Maryland, and debit cards weren't yet a real big thing when we had the discount for cash program, or if they were, I don't remember.

    There's a way to not make a ton of money by the way, own a gas station.

    Shiny Side Up!
    Bill
     
  18. DGS

    DGS Four Time F1 World Champ
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    Depends on the agreement. My tobacconist just dropped taking debit cards. It used to be that the credit card fee was higher, but they raised the fee on debit cards. (I guess that's why there's all that advertising about using cash cards to "keep it moving".)
     
  19. 62 250 GTO

    62 250 GTO F1 Veteran

    Jan 9, 2004
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    Even if you have "gas regulation" it may still be legal.
     
  20. Choptop

    Choptop F1 Rookie

    Aug 15, 2004
    4,455
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    illegal in Kalifornia to charge more for CC transactions.

    ATM "surcharge's" are legal.
     
  21. Protouring442

    Protouring442 F1 Veteran
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    That's the whole rub of the issue; it's also illegal to charge more for a credit card transaction here in The People's Republik of Maryland. Unfortunately, it is OK to give a "discount for cash" despite the fact that both you and I know that these are really the same thing.

    Shiny Side Up!
    Bill
     
  22. Snapper323

    Snapper323 Formula Junior

    Mar 12, 2005
    263
    South Carolina
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    L. Lee
    Apparently, this is a franchise owned BP and not a corporate owned one. What the owner is doing is making his customers pay the cost of using a credit card (billing,advertisement stickers, etc.). If he owned a Walmart, he would charge .50 for every buggy that passed thru the checkouts because of wear and tear and the cost of buying new buggies.
     
  23. Protouring442

    Protouring442 F1 Veteran
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    Sep 5, 2007
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    Maybe... but believe me, the companies own the owner! For example, we were required to be open 24/7. If we were caught being closed, the rent "rebates" could be taken away, thus doubling your rent. By the way, I understand that the rents in the Maryland area are somewhere around 20K a month, less "adjustments."

    Shiny Side Up!
    Bill
     
  24. TexasF355F1

    TexasF355F1 Four Time F1 World Champ
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    It's sort of like if you go to Spec's Liquor Store. You get a cheaper price with cash, as opposed to credit.
     
  25. TurboTodd

    TurboTodd Formula 3

    Jan 8, 2004
    1,078
    Brentwood, TN
    IIRC, the Love's Country Stores in Texas charge different prices on their diesel depending on payment.
     
  26. karmavore

    karmavore Formula 3

    Dec 29, 2002
    1,641
    Maryland
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    What SHOULD be illegal is Cab drivers, like the one I got at Heathrow Friday, charging 10% to take Credit Cards!!! They should only be allowed to change what they incurr. Annoying...

    Lucas.
     
  27. Buzz48317

    Buzz48317 F1 Rookie

    Dec 5, 2005
    2,803
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    It is probably not illegal as others have pointed out. However it is in violation of their subscriber agreement with the credit card companies. It is also in violation of this agreement to have a minimum or maximum on the transaction. So for example if you go into your favorite Chinese food place (I say this cause mine has this sign) and they have a sign that says $15 minimum for CC purchase, this will violate their agreement with the major cards. You should be able to purchase one egg roll and be able to charge it. However it is generally the squeeky wheel that gets greased, and most customers don't know that this is in violation (or don't care enough to call the credit card company) so nothing is ever done about it.

    I was going to pay my property taxes with a credit card this year and get the miles for it, but the Township where I live is not a subscriber for CC purchases, they have an affiliate that will facilitate the transaction for an additional 10% of the total....needless to say I paid with a check.
     

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