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Gas Stations Giving Breaks to People with Cash | News

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Gas Stations Giving Breaks to People with Cash
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LAS VEGAS -- More gas stations nationwide are offering discounts for fuel purchases made with cash as high oil prices eat into their profits. In some cases, it can be a difference of at least five cents per gallon at the pump just for paying with cash.

The Sinclair station near Durango Road and Summerlin Parkway charges $3.83 for unleaded gas using cash and six cents more using a credit card. The owner says it might not sound like a lot, but amounts to thousands of dollars in the long run.

"It's $5,000 to $10,000 a month in credit debit card processing. Now multiply that times 12 months over five years, you're talking about the single largest expense in the petroleum industry next to labor," said store owner Murray Peterson.

Because banks charge Peterson a credit card processing fee, he has to charge consumers. But he refuses to charge everyone, which is why he offers an option of paying six cents less for gas with cash.

Not every gas station has this option, but Petersen says they are required to clearly post separate prices for cash and credit signs. The savings has forced some people to forget about plastic altogether.

"I canceled all my credit cards because the interest has grown so much. I used to pay 18 percent and now there's 26 percent -- unbelievable," said Petra Herrera.

Herrera says she saves about $30 to $40 a month by paying cash instead of credit cards. She travels 60 miles per day to work, so she relies on gas stations that offers a cash savings.

Here are some pros and cons to cash versus credit cards: of course, cards charge interest and fees if you go over your limit. On the other hand, credit cards are safer than carrying large amounts of cash and they can easily be reported if you lose them. But with cash, you don't have to worry about skimming devices that are placed at ATM's and gas pumps that steal your credit card number.

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