Pulling up to the pump is getting more expensive — not just because of rising fuel prices, but also due to hefty fees that are quietly added to credit card purchases.
In recent years, gas stations nationwide have increasingly imposed steep surcharges for customers who pay with credit cards, and the practice is accelerating.
A recent investigation by NBC affiliate WPTV found it’s not uncommon for stations in Palm Beach County, Florida, to charge drivers using credit cards up to $1 more per gallon compared with the cash price.
Although many drivers overlook these surcharges, they can easily add several dollars to every fill-up. Over time, that means a serious extra expense for commuters and road-trippers alike.
What’s more, these fees are usually legal, catching many consumers off-guard until it’s too late.
Credit card surcharge regulations vary by state
Merchants in many places use these credit card surcharges to offset processing fees charged by card networks. But whether these surcharges are legal depends on where you live.
Surcharging credit card purchases is allowed in most states, with only four — California, Connecticut, Maine and Massachusetts — banning the practice outright, according to Merchant Cost Consulting.
Other states — including Colorado, Georgia, Kansas, Minnesota, New York and Texas — allow the practice, but with restrictions.
This patchwork of regulations means that a driver crossing state lines could face very different policies from one place to the next.
Surprise surcharges can be especially frustrating if you’re loyal to a particular gas station chain or traveling in unfamiliar areas.
In short, unless you’re buying gas in Connecticut, Massachusetts, Maine or California, don’t assume the price per gallon listed on a street sign includes every possible fee for using your credit card.
How to avoid credit card surcharges
There are several ways to sidestep costly credit card surcharges at gas stations. They include:
- Pay cash. When you pay cash, you don’t trigger any processing fees for the station, so you’ll almost always get the lowest advertised price.
- Pay with a debit card. According to Merchant Cost Consulting, it’s illegal in all 50 states for gas stations to add surcharges to debit card purchases. That means using your debit card can often get you the same price as paying with cash. However, paying with a debit card can be risky, as we note in “5 Surprisingly Costly Mistakes We Make at Gas Stations.”
- Check for a sign or a different price at the pump. Look closely for posted notices or differing cash and credit prices before you fill up, either at the pump itself or inside the station.
- Ask before pumping. If you can’t tell from signs or displays, simply ask the attendant whether a surcharge will apply. That way, you won’t be surprised when you check your receipt.
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