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I think it is because it is easier, as a business owner, to see someone trying to charge me for a payment method and to want to recoup that cost.

• matthewdgreen 6y ago
  Gas stations operate in an intensely competitive environment with profit margins in the 1-2% range. Consistently across dozens of stations, both independents and large chains, I see noticeable discounts on the order of 1-2% for using cash. This isn't a question of a few owners making a mistake with numbers. I strongly suspect if you aggregate these discounts, you'll get a very clear picture of the comparative cost of cash/debit handling and credit card costs.
  • xnyan 6y ago
    Because of the environment of gas stations (easy to get in and out, open all the time, has cash on hand, not at the top of society) they typically already have really good cash handling procedures in place. They are already paying for cash to get in and out quickly and securely so I think when compared to something with similar margins and volumes like a grocery store, it makes more sense to push for more cash via discount vs a grocery store. As an anecdote, I don't think I've seen a grocery store offer a cash discount whereas I've seen it offered at gas stations frequently.
    • matthewdgreen 6y ago
      My understanding is that at least until recently, it was illegal in many states for stores to charge customers a different price for cash and credit, but that gas stations lobbied for an exemption. But I don't know the current state of the laws.