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 cards have fees. If you pay cash, the merchant avoids these fees. A cash discount also requires you to enter the store (where they sell things like soda and candy, that have a much higher margin than gas)