Cheap and expensive gas at same station

Seven On Your Side
May 14, 2008 3:15:55 PM PDT
Just when you thought gas prices couldn't get any higher, Eyewitness News found a new wave of fees some gas retailers are adding on. How can you save big bucks? Seven on your Side has the answer. "I've personally never seen it, I've never seen it before," says Michael Clapman.

Clapman is talking about an expensive sign of the times. Two prices for gas. One if you pay cash, the other, a higher number if you use a credit card.

"It said cash $3.89 a gallon and credit is $4.49 a gallon. That's a big difference, and at that point i was pretty outraged," adds Clapman.

When Eyewitness News visited the pumps at an Exxon they were charging a 50 cent per gallon premium for charges. If you fill a sixteen gallon tank, that's $8 extra.

How much is the retailer charged when you use a credit card at the pump?

If you buy $60 worth of gas at the Exxon station, Visa charges the station a two percent fee. That means the retailer pays 22 cents per gallon when you charge.

Still it's a far cry from the 50 cent premium the Exxon we visited charged.

In order to charge two prices retailers have rules to follow.

In both New Jersey and New York, gas stations must have both prices, cash and credit listed at the pump. The street sign has to show if that price is for cash or credit.

One way to save money is to get a gas company credit card. Most don't charge you a fee if you use their plastic, and some actually give cash rebates.