By charging different prices for cash sales and credit sales, gasoline stations are able to provide a discount to consumers who choose to pay with cash, while those who pay by credit card pay the regular price. Credit card companies charge gas stations interchange fees that are based on a percentage of the sale. While a gas station typically only makes between 5-10¢ a gallon, the credit card company charges a percentage based on the sale. When the cost of gasoline increases the credit card interchange fee increases but the station’s profit does not. Any elimination or restriction of Cash/Credit Pricing will only harm those consumers who decide to pay with cash because they will be forced to pay the higher credit price. It would also further harm retailers who wish to entice patrons to visit their shops.
Click here to read the documents from Weights & Measures which regulate cash/credit pricing
215th Legislature (2012-2013)
S-1243
Summary: Prohibits retail motor fuel dealer from charging a credit card customer in excess of four percent of purchase price for same fuel to customer paying by cash.
Status: Currently waiting to be discussed by the Senate Transportation Committe
Sponsors:
Senator Joe Vitale (D-Middlesex)
Senator Jim Whelan (D-Atlantic)
Click here to view the bill text
Click on the next page to view previous versions of this legislation