Charged Credit Pricing When Buying Gas with a Gift Card?
Last Updated on June 26, 2017
Attorneys working with ClassAction.org are no longer investigating this matter. The information here is for reference only. A list of open investigations and lawsuits can be viewed here.
At A Glance
- This Alert Affects
- Consumers who purchased gas using a prepaid gas card or gas station gift card.
- These consumers are believed to be suffering a monetary loss when charged the higher, "credit card" price even though their gift cards may not be subject to the same credit card issuer transaction fees.
- Major gas station chains
- Additional Details
- Gas stations have to absorb a percentage of the purchase price when someone pays using a credit card and therefore offer an incentive – a lower price – for consumers to pay with cash.
Consumers who were charged the "credit card" price when using a gas station gift card or prepaid gas card may have legal recourse. It has been alleged that some major gas station chains are charging these consumers the "credit card" price, even though their gift cards may not be subject to the same credit card issuer transaction fees. Any discount the consumer may have gained for purchasing these cards, which for all other purposes are treated as cash, is nearly neutralized when they are charged the credit price upon buying gas.
Consumers Charged More When Paying With Credit
Gas stations typically provide gas at two different prices – a higher price for purchases made using credit cards and a lower price for those paid in cash. Many gas stations have elected to offer a discount to consumers to incentivize them to pay using cash, as the gas stations must absorb a certain percentage of the purchase price when someone pays using a credit card. When gas prices rise, so do the transaction fees gas stations pay to credit card issuers, even though the same amount of gas is being sold.
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