Maurie Backman
5 min read
Credit cards have long been a popular and convenient way to pay for most things — including filling up at the gas station — and there are benefits to using one at the pump, such as bonus points or cash back on fuel purchases.
However, if you’re not cautious, your tendency to pay for gas with a credit card could end up costing you more money. That’s something Pat Igo of Palm Beach Gardens, Florida recently learned the hard way.
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Igo, like many consumers, had noticed an uptick in gas stations charging more money per gallon for credit card purchases than cash purchases. Making matters worse, some area gas stations are even trying to hide the extra charge for credit cards.
In most states, it's legal for businesses to impose a surcharge on customers who are paying by credit card. One of those states is Florida.
The only requirement is that businesses must inform customers of those surcharges ahead of time. However, some Florida gas stations are testing that concept to an unfair limit.
Igo told WPTV News that his company, North County Cooling, has a fleet of 12 trucks and fueling them all costs his business about $3,000 per month. He recently went to fill up one of his trucks when he noticed something that shocked him at the pump.
“I noticed this little box at the bottom,” Igo shared with WPTV. “And it didn’t match the price that was out on the street.”
Igo says a small sign on the pump showed that those paying with a credit card would pay $1 more per gallon, so he asked the station's manager if that was an error. “And he said no,” Igo said. “‘I can make it any number I want.’ And so I walked out.”
Reporter Dave Bohman looked into the matter and found that a number of local gas stations were charging $1 more per gallon for credit card payments than cash. When he started asking questions, two stations dropped the surcharge down to 90 cents per gallon.
Bohman also reached out to consumer attorney Thomas Patti to see if this practice is legal. His response? Yes.
"If they say ‘listen, we're going to provide you a discount for cash-based services and we're going to charge you a standard price for a credit card,' that's seemingly a lawful way to go about it," said Patti.
