Paying at the pump with a credit card is quick and convenient, but did you know it could be costing you more money? A little-known law allows gas stations to charge extra fees when you use a credit card—adding up to hundreds of dollars per year in unnecessary expenses.
If you’re still swiping your card every time you fill up, it’s time to rethink your strategy. Here’s why you should stop buying gasoline with your credit card—and what to do instead to save money.
Why Gas Stations Charge More for Credit Card Purchases
When you pay with a credit card, the gas station has to pay processing fees (usually 2-4%) to the card network (Visa, Mastercard, etc.). To offset these costs, many gas stations now pass those fees directly to customers in the form of higher prices.
This practice became more widespread after a 2013 legal settlement between merchants and credit card companies. Before then, credit card agreements often prohibited surcharges—meaning gas stations had to charge the same price for cash and credit. Now, thanks to changes in the law, businesses can legally add a credit card fee at the pump.
How Much More Are You Paying?
Let’s break it down with real numbers:
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Average gas price (May 2024): ~$3.50/gallon
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Credit card surcharge: 0.10–0.30 per gallon
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Average fill-up (15 gallons): 1.50–4.50 extra per tank
If you fill up once a week, that’s an extra 78–234 per year—just for using a credit card!
Debit Cards Aren’t Always a Better Option
You might think, “I’ll just use my debit card instead.” But be careful—some gas stations charge fees for debit transactions too, though they’re usually lower than credit card fees.
Another issue with debit cards: Gas stations often place a temporary hold (up to $100) when you pay at the pump, which can tie up funds in your account for a day or two. This isn’t an issue with credit cards since you’re not using your own cash upfront.
The Best Way to Pay for Gas (Without Extra Fees)
1. Pay with Cash for the Lowest Price
Most gas stations offer a cash discount, meaning you’ll pay less per gallon if you use physical money. If you’re serious about saving, withdraw cash before heading to the pump.
Pro Tip: Some stations list two prices—one for cash and one for credit. Always check the signs before swiping.
2. Use a Gas Rewards Credit Card (If the Math Works)
If you must use a credit card, choose one that offers cash back on gas purchases. Some cards give 3-5% back, which could offset the surcharge.
Example:
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Gas price with credit fee: $3.60/gal
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5% cash back: $0.18/gal discount
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Effective price: $3.42/gal (better than the cash price in some cases)
Best Gas Rewards Cards (2024):
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Costco Anywhere Visa® Card – 4% back on gas (up to $7,000/year)
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Bank of America® Customized Cash Rewards – 3% back on gas (if selected as category)
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Citi Premier® Card – 3x points on gas
Note: Always check if the rewards outweigh the surcharge.
3. Join a Gas Station Loyalty Program
Many chains (Shell, Exxon, BP) offer loyalty programs that give discounts per gallon when you pay with their branded credit card or app.
Example:
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Shell Fuel Rewards: Save 0.05–0.10/gal
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Exxon Mobil Rewards+: Earn points for free gas
4. Use Apps to Find the Cheapest Gas (Including Cash Prices)
Apps like GasBuddy, Waze, and AAA TripTik show real-time gas prices, including cash vs. credit differences. Some even offer cashback deals.
The Bottom Line: Stop Overpaying at the Pump
Credit card convenience comes at a cost—literally. If you’re not maximizing rewards or hunting for cash discounts, you’re likely paying more than necessary.
Action Steps:
✔ Pay with cash when possible for the lowest price.
✔ Use a gas rewards card if it offsets the surcharge.
✔ Join loyalty programs for extra discounts.
✔ Check gas apps to find the best deals near you.
By making a few small changes, you could save $100+ per year—money that’s better spent elsewhere. Next time you pull up to the pump, think twice before automatically reaching for your credit card.
