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September 15, 2011

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Sorry. I don't have that problem. I buy 99% of our gas at Costco. They only take CC.

My mother and I argue about this all the time, because I never pay for gas with cash. It's easier (and cheaper) to pay with credit!

We live out of the city a bit, there is a local gas station here that we used to go to all the time. Not the absolute lowest prices, but pretty good (usually 2 cents higher than the lowest, so it was still good prices). A few months ago, they started charging 7 cents per gallon to use cards, and we started just getting gas elsewhere - the next exit up the interstate is where the best prices are. So we just get gas there when we're out. And the math works out to be a 19 cents per gallon difference (10 cents for cc, 7 cents for their fee, and 2 cent normal price difference).

Too bad, we liked supporting a local store and rewarding them with our business.

The true moral of the story is - just go to the place where you aren't penalized for using a credit card anyways.

I never pay cash for gas. I also have the Chase Freedom card but even when they don't give the 5% rebate on gas I pay with it. I also never go to stations that give a "discount" for cash (aka charge extra for credit cards). For the most part the cash discount might be 2-4 cents compared to a station that has the same price for cash and credit cards. At todays prices that's only about a 1% discount which I get back with the Chase credit card, and often I get more.

I don't like paying with Cash for gas, because here all of the stations make you prepay. So you have to go in, tell the clerk how much gas you are getting and pay, then go back to your car and fill up. I hate people and I'm lazy, so CC's work better for me.

Paying with credit instead of cash at the gas station is:

* Simpler
* Faster
* More convenient
* Safer
* Ultimately, cheaper

What's not to like? Why would you not do this?

Or you can use a cash back debit card like the Perkstreet card and get 2% cash back on everything and still be paying "cash".

Peter --

Best option IMO is to pay with gift card, purchased with 6% cash back credit card. Details:

http://www.freemoneyfinance.com/2011/09/my-new-credit-card-strategy.html

When I was in MI, I noticed Meijer have always lowest Gas-price, and other Gas stations around keep their Cash price same (or 2 cents less than) as of Meijer and CC price is 6-8 cents more than Meijer, so with even 2% cash back, better to buy with CC. BTW, my friend owns busy Gas Station in AZ, says their most business is from CASH (>50%), not CC (<20%) or debit (@30%). Also some Gas stations like ARCO (in West coast) do NOT take credit, just cash or debit (with 35 cents transaction charge)

I love my Chase Freedom card. Great on gas and airline purchases too. For the airlines, you have to be careful and buy directly from the airline company. Having Orbitz show up on your cc statement will not work. What I do is shop for the lowest prices using the "On the Fly" mobile app, then copy the trip code and repeat it back to the agent over the phone. I paid $950 for a $1000 ticket! Not to mention the app itself saved me a few hundred dollars compared to the competition.

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