Savings for cash payment not swaying drivers
The practice by gas station owners of offering a discount to drivers who pay cash is not swaying drivers, as 90 percent of them choose to use plastic regardless of price.
News 12 New Jersey has reported on how some gas stations across the state, in an effort to help meet their bottom line, are offering two different prices for the same type of gas - one for cash and another for credit cards.
Gas station owners have chosen to offer the reduced price because credit card fees are based on a percentage of the sale.
When gas was $2 a gallon, for example, many station owners paid the fee out of their own pocket. But now that the price has climbed to $4 a gallon, the financial burden is too large for them to bear, they say.
While gas station owners believe they are being squeezed by credit card companies, Sandra Laloo, of Hamilton Township, says she doesn't mind paying extra to fill her tank.
"I prefer to pay with the card because I get extra bonus points on the card, so I'm taking advantage of that at the same time," says Laloo, who filled up her Lincoln Navigator for $120.
Another reason some choose plastic is simple economics: They are able to budget better in tough economic times.
"The way gas is going, $50 worth of cash, it's kinda hard not to spend it,? says Agustine Cuevas, of Trenton. ?At least with a credit card, you never have to see the money."
A local group representing gas station owners is working with a federal coalition that is taking on the credit card industry in hopes of finding some relief.
To watch an extended interview with one driver searching for gas bargains, go to Channel 612 on your iO digital cable box and select iO Extra.