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To save on the credit card fees. Gas stations are one of the few businesses which are allowed to offer cash discounts in their merchant agreements.
by dhosek 5y ago
To save on the credit card fees. Gas stations are one of the few businesses which are allowed to offer cash discounts in their merchant agreements.
- bee_rider 5y agoInteresting! Any idea why that is?
- kasey_junk 5y agoBecause the margins on gas are tiny. The gas stations would have never had any credit card uptake without it and people have to buy gas and are extremely price sensitive so would have continued shopping at cash only gas stations. Unlike say a clothing store where the convenience of credit overcomes the price sensitivity, you can defer the purchase and the merchant has higher margins.
- acjohnson55 5y agoA lot of places do this, whether it is "allowed" or not. But my understanding is that after much push and pull between merchants and processors, most processors do allow it.