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

When you use your credit card anywhere from 1 to 3% of every purchase goes to the credit card company. So by paying cash they are giving you a break on those fees.