When it comes to gas prices, you know they're on the rise but did you know that it often costs you more to use your credit card than it does to pay in cash?
For many drivers this can get a bit confusing when the posted price is different than what shows up on their receipts.
An increasing number of gas station owners are now offering different prices for cash purchases versus those made with a credit card.
The reason comes down to credit card surcharges that merchants face.
Most credit card companies charge a two to three percent surcharge for every credit card transaction.
As an example, a year ago when the national average for a gallon of regular unleaded was $3.00 a gallon, the surcharge would be about six cents for every transaction.
Now the national average is $4.07 a gallon, meaning the surcharge is about eight cents per transaction.
For gas station owners, those pennies can really add up and cut into their profits.
The problem with the price difference though, is that the one drivers see on big signs in front of stores, is often the cash discount price.
It's almost always labeled, but many people don't know there's a difference between the price they see on the sign, and the price they get when they pay with a credit card, until they see their receipts.
"A little upset because you think you're paying one thing and you're actually paying something else. So now I've noticed to look at the gas price and make sure it says cash, debit, credit or whichever," said driver Jennifer Chapman.
Driver Robert Legette says he didn't notice the price difference before, but will now be paying closer attention at the pump.
"I will actually be checking now to see what the prices are and to look for those signs like that," said Legette.
Gas stations are required to label the cheaper price as a "cash" price.
Some states such as New Jersey, have gone as far as creating a bill that would require gas station owners to clearly display the price difference or face fines.
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