Why is it that, at some gas stations, it’s cheaper to pay with cash instead a credit card?

Question

Have noticed this recently at a few gas stations in my area – it will be several cents per gallon cheaper to pay for gas with cash rather than a credit card. Why is that?

In: 23

Answer 1

Credit card companies charge transaction fees. The gas station gives a discount for cash payers because they don’t have to cover a transaction fee when people pay in cash.