Posts Tagged ‘gas cards’

According to ABC News (http://cosmos.bcst.yahoo.com/up/player/popup/?rn=3906861&cl=8732039&ch=4226713&src=news), some gas stations are automatically changing the prices on the pump for credit card users. In the story, as soon as the reporter swipes her card, the price on the digital readout increases .08 more than the posted amount: From the posted amount of 4.27 to 4.35.

Station owners don’t profit from gas, but from in-store items. Some gas stations offer discounts for using cash, hoping while inside the buyer will pick up a soda or candy bar.

The price of gas has risen so high that the scope of what one spends has been lost. It’s easy to bait-and-switch someone who has become numb to the cost. Most consumers won’t notice the additional 8 cents per gallon.

Deceptive, yes. Illegal…can’t tell. I’m not sure if this qualifies as price gouging. However keep an eye on the rate at the pump and your receipts.

This story highlights gas stations in New York state, and there is no mention of how widespread this practice is.

At the more remote brothels in Nevada, truckers used to be big business. But with diesel prices rising, the cost of gas is cutting into their bottom line. Brothels are seeing business decline as much as 25% from last year, according to industry officials.

In order to combat the business downturn, the Shady Lady Ranch, a brothel that depends on long-haul truckers, is offering gas cards valued at $50 and $100. The card value is determined by how much the client spends.

With the right credit card, an enterprising trucker could get a gas card and get points/cash back up to 5-6% of their spend. Most of these cards offer additional points/cash back for vehicle maintenance, convenient stores, groceries—the BP Visa Rewards Card offers “2% rebates on all eligible travel and dining purchases”. I’m sure the brothel could code for that. Some brothels may even be considered a hotel/motel, in which case a Hotel credit card may work.

Of course this is speculation. I’m no industry official. I wasn’t even sure they take credit cards, but a quick phone call to the Shady Lady Ranch verifies they take all four: Visa, MasterCard, American Express and Discover. According to the Moonlit Bunny Ranch only take Visa and MasterCard.

The original story on the AP: High fuel prices put pinch on Nevada brothels

Today, I filled up at the same station with a different credit card. There was no $60 limit. So maybe it was the combination of that particular gas station and my bank. This will go unsolved for now.

Along the same lines, a gas station owner in West Virginia has ceased taking most credit cards. The credit card surcharges are costing his business $1 for every $50 that is spent. It seems this would mean fewer customers, and fewer customers mean less business. So do gas stations make so little off of gas, that this is a reasonable option? Apparently so. They make most of their profits off of what is sold in-store.

When getting gas, I always use my bank card at the pump. Over the past few weeks, I’ve gradually accepted the rising prices as a cost for loving my gas-devouring beast. However something new happened the other day—the pump stopped at $60 flat. My tank wasn’t full, and I wasn’t able to milk anymore gas from that transaction. I decided to look into it.

Who did it

There are three suspects for why the pump stopped when it did.

Me. This could be my fault if my account was empty. But it wasn’t (at that moment, anyway), so I ruled this out.

Wells Fargo. In the almost 10 years I’ve used Wells Fargo, this has never happened. What’s more, the week prior I paid over $65 at another station.

The station. This was my first time at this station, so I have no experience to compare. Therefore, rightly or wrongly, it’s getting the blame.

Before these charges can stick, I need more evidence. So I turn to a very accurate and trusted resource: The internet.

I immediately stumbled onto City-Data.com, a site that collects and analyzes data about US cities. Oddly, the forum posting that was the most useful mainly discussed gas in the UK. But hidden in the petrol talk was the snippet that solves it all:

The gas station owners have to find a middle ground between how much people usually get and how much they can put a hold on those funds in the account. When you swipe your [debit] card neither the station or your bank knows how much you are going to spend, so they put a “hold” on a set amount of funds in your account. If they set it too high, and there isn’t enough to cover it, the card will be denied and the pump will not authorize and turn on. Most lately have been set at $50 or $75. Generally enough for average sized tanks and not too big of an amount that the [debit] card will not work.

Thanks Bydand.

At peace

Credit cards don’t have this issue. Also, depending on the program, many credit cards feature rewards or cash back programs for filling up. I use a Discover Open Road credit card that offers cash back on gas and maintenance on my ever-hospitalize Jeep. This, or other gas cards,can help the hurt.

But as traumatizing as my weekly 17 gallons are, at least I don’t have the 26 gallon Escalade, the 32 gallon H2 Hummer, or the (gulp) 40 gallon Suburban.