The Dash For Cash
Looking to give motorists another reason to stop at their stores and reduce the flow of money to Visa and MasterCard, an increasing number of gasoline retailers are offering per-gallon discounts to customers who pay with cash.
Although Congress is currently considering legislation that might reduce skyrocketing credit card fees, many retailers believe they can’t afford to wait for governmental intervention. Across the country, marketers are investing in new signage and other equipment to offer three, five and even 20 cents off per gallon to customers who keep their major credit and debit cards in their wallets.
Nemer Saad, the Phoenix-based co-owner of Two Brothers Distributing, has offered a discount, now eight cents, for cash transactions at his seven Valero stores since late spring.
“If you can do it, why not?” Saad said. “It helps the consumer and it helps us. Anything that helps business is a good thing.”
Saad, who at press time was selling regular unleaded gas for $4.07 a gallon, or $3.99 with the discount, said his credit-card fees are close to nine cents per transaction. He invested $3,000 to $5,000 per location in new street signs to meet requirements set by the state’s Department of Weights & Measures. He also spends a few dollars every day printing out signage for the pumps, which clearly lists the credit/debit price and cash price. More.
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