Paying less than the cash price for gas while using my credit card

[bimmer456]

So I've been lazy and always use my credit card at the gas station even though they charge 10 cents more per gallon with credit. Turns out I was getting gas cheaper with the card because I get 3 percent cash back and another 75 percent bonus cash back on top of that. So if a gallon of premium costs $3.49 cash and 3.59 credit I get an effective price of $3.40 after cash back which is almost 10 cents cheaper than the cash price!

[TomHudson]

Using a credit card for purchases when you can pay it off each month, in lieu of cash, is s smart way to manage your finances. The caveat is that you have to pay it off, or you will paying a lot more for your purchases.

We use the credit card to maintain a budget. I enjoy getting the emails from Visa to track our purchases and keep up to date monthly spreadsheets.

[aerostar]

Yeah, I thought this was credit card 101.



But it's funny that people rave about how much they're getting back from credit card rewards.

There is pretty much a flat 3% increase on all goods across the US b/c of credit card fees. Every time that your card is swiped the fee is ~3%. This cost was already passed on to us a long time ago.

[bimmer456]

Originally Posted by aerostar

Yeah, I thought this was credit card 101.



But it's funny that people rave about how much they're getting back from credit card rewards.

There is pretty much a flat 3% increase on all goods across the US b/c of credit card fees. Every time that your card is swiped the fee is ~3%. This cost was already passed on to us a long time ago.

I get 3% cash back on gas so that wipes out the 3% fee charged by the gas station and then some, and they do list there cash price being cheaper, but for most things the cash price is the same so it's the business that are paying the merchant fee. Also, I get bonus cash back so that's how gas is cheaper for me with credit than cash.

[aerostar]

Originally Posted by bimmer456

I get 3% cash back on gas so that wipes out the 3% fee charged by the gas station and then some, and they do list there cash price being cheaper, but for most things the cash price is the same so it's the business that are paying the merchant fee. Also, I get bonus cash back so that's how gas is cheaper for me with credit than cash.

Right, but the point is that all items are innately ~3% more expensive now DUE to credit cards in the first place.

[dmk08]

Wow you have to pay more for gas with card? I dont think thats a thing here.

[Ktmdude]

Wow, you guys are lucky with your gas prices! It's usually around 7 dollars per gallon ( a little less than 1.5 euro per liter) in Belgium.

[aerostar]

Originally Posted by Ktmdude

Wow, you guys are lucky with your gas prices! It's usually around 7 dollars per gallon ( a little less than 1.5 euro per liter) in Belgium.

Yes, but we pay for it through taxes which fund our trillion dollar war over gas in the middle east.

[Ktmdude]

Originally Posted by aerostar

Yes, but we pay for it through taxes which fund our trillion dollar war over gas in the middle east.

Your taxes are nowhere as high as ours though. Europe is definitely not where you want to live when it comes to cars. I pay a little under 3k euros yearly just for road taxes. First time registration was over 10k

[aerostar]

Originally Posted by Ktmdude

Your taxes are nowhere as high as ours though. Europe is definitely not where you want to live when it comes to cars. I pay a little under 3k euros yearly just for road taxes. First time registration was over 10k

Yes, but you get a lot of free / cheaper services than we do.

Tuition, medical, etc.

Also, your roads don't have 12 inch wide potholes that don't get fixed for 6+ months.

Also, most of your bridges aren't falling apart and are ticking time bombs. You also don't have subways that look like they're from the 1960's (they are).

[Ktmdude]

Originally Posted by aerostar

Yes, but you get a lot of free / cheaper services than we do.

Tuition, medical, etc.

Also, your roads don't have 12 inch wide potholes that don't get fixed for 6+ months.

Also, most of your bridges aren't falling apart and are ticking time bombs. You also don't have subways that look like they're from the 1960's (they are).

I agree except for the 12 inch pothole part. Belgium is famously known for it's awful roads. The rest of Europe has pretty nice roads.

[GoRomeo]

I just got approved for discover it card and I will start using it for gas and groceries. they offer 5% cash back not only that, they advertise that they will double my cashback at the end of year... no limit..

Gas its getting expensive again. We need to be wise about it.

[bimmer456]

Originally Posted by GoRomeo

I just got approved for discover it card and I will start using it for gas and groceries. they offer 5% cash back not only that, they advertise that they will double my cashback at the end of year... no limit..

Gas its getting expensive again. We need to be wise about it.

With my 75% cash back bonus it equates to 5.25% cash back on gas for me. Roughly 9-10 cents less than the cash price advertised at the gas station.

[autoart]

If you gas at Costco the price of gas is usually the same price as the cash price at Arco plus you get 3% back. A win/win

[louielouie]

5% cash back on gas with Chase Freedom Jan-March

[Mbbrewer]

Originally Posted by GoRomeo

I just got approved for discover it card and I will start using it for gas and groceries. they offer 5% cash back not only that, they advertise that they will double my cashback at the end of year... no limit..

Gas its getting expensive again. We need to be wise about it.

I hope it keeps getting more expensive.

[mbanks21]

I use my Amex blue to buy a gas station gift card at the grocery store and get 6% back.