Paying cash for your gas vs credit card...

[SecondCor521]

I fill up at Walmart and use my 2% Fidelity cash back Visa.

But with spending being a net WR% of 1.37%, with Auto being 4.76% of my spending, and Fuel being 77.57% of my Auto spending, the 2% cash back ends up being 0.00001011698 of my FIRE stash. So 1/10 of a basis point.

Even so, sometimes I get inspired and will do the Upside thing. @athena53, it'll show you a map of gas stations nearby with offers, and it'll also tell you how far away the gas stations are. You can even click on a station and it will pull up directions to it. Still, I don't think it's worth the hassle unless I'm getting 25 cents off a gallon or something. The Fred Meyer / Kroger gift cards 4x fuel points thing is probably easier.

 

[bobandsherry]

I had to fill up today and combined my discounts today to save 75 cents/gal, 17 gallons puts $12 for fill up in my pocket. Buys me lunch and McD's. [emoji3060] $3.75 to $3 at Circle K. By comparison Sam's Club was $3.70. My credit card doesn't give cashback for fuel purchase at Sam's Club.

 

[6miths]

No discount for cash here. Vast majority of stations you can pump first and pay after except a few stations in the wee hours. I use Costco most of the time. Have app on my phone so it's a wave at the pump and good to go. Only thing pump asks is if I want a receipt. Still looking forward to going full electric although the recent transcontinental drive gave me pause.

 

[Out of Steam]

Because of the relative ease of installing a skimmer on an unattended gas pump, the only thing not to do is to use a debit card at a gas pump.

 

[jollystomper]

Very few stations in my area give a cash discount Maybe 2 out of 30+. In addition, to pay cash you have to go inside, so that means extra time at the pump and potential delays. I use whatever card gives me the best discount. Currently Chase is giving me 5% back through the end of September.

 

[ERD50]

Because of the relative ease of installing a skimmer on an unattended gas pump, the only thing not to do is to use a debit card at a gas pump.

IME, the pumps I've used have all been converted to "tap". I had been concerned about skimmers, some were very well hidden, but I don't think they've figured out how to skim the 'tap'... yet.

-ERD50

 

[FiveDriver]

We only use a Credit Card at the pump. I stopped peeling off Twennies many years ago. We're Tap & Go.

There's a 10 cent difference in the price of Cash vs Credit, but SC has one of the lowest state excise taxes in the nation.....our Regular gas is only $3.39 vs $3.49 for Credit. That's about a 3% upcharge for using a CC. With Fido's 2% Cash Back, -- I call that a break-even.

I just checked our monthly spend on gasoline and it's only around $90. DW's Lexus NX is our main transport -- it sips regular gas. My 528 is a weekend cruiser. I fill 'er up every two months with mid-grade.

This arrangement suits us just fine.

 

[ERD50]

Cash people are maybe also not accounting for the grace period and convenience of the credit card.

I know, people will say "I'm making close to zero interest in my checking account anyhow" - but that's not the right way to look at it. Needing more money (or earlier) in the bank means that money isn't in your portfolio, earning long term growth rates. That adds up. In effect, with CC you pay ~ 1 month later, with cash you probably effectively pay ~ 1 month earlier (from the time you take that cash out of the bank - it's 'dead money'), a two month delta.

Then add in, you've got to get to a bank to get that cash, then that sits in your wallet/drawer earning nothing. Inconvenience of leaving your car, going up to the counter to pay - no thanks, I just want to get out of there.

And as discussed, my rewards more than cover the cash discount (I'm not aware of any stations that offer a cash discount near me, but I never really looked either), so it's a non-starter anyhow. Cash just sounds like lose-lose-lose. Why do it?

-ERD50

 

[FiveDriver]

Cash people are maybe also not accounting for the grace period and convenience of the credit card.

I know, people will say "I'm making close to zero interest in my checking account anyhow" - but that's not the right way to look at it. Needing more money (or earlier) in the bank means that money isn't in your portfolio, earning long term growth rates. That adds up. In effect, with CC you pay ~ 1 month later, with cash you probably effectively pay ~ 1 month earlier (from the time you take that cash out of the bank - it's 'dead money'), a two month delta.

Then add in, you've got to get to a bank to get that cash, then that sits in your wallet/drawer earning nothing. Inconvenience of leaving your car, going up to the counter to pay - no thanks, I just want to get out of there.

And as discussed, my rewards more than cover the cash discount (I'm not aware of any stations that offer a cash discount near me, but I never really looked either), so it's a non-starter anyhow. Cash just sounds like lose-lose-lose. Why do it?

-ERD50

Yes, that's the way I look at it too.

A 'Convenience Fee' of 1% on $90 a month is 90 cents.

 

[mpeirce]

A 'Convenience Fee' of 1% on $90 a month is 90 cents.

Yeah. I also probably spend more time on saving on gas than I should.

I save a few bucks on gas and then turn around and buy a business class seat to Europe for a trip.

Go figure...

 

[Chuckanut]

Cash discount in my area is about 10¢ a gallon. Gasoline is near or above $5 a gallon. My Costco Visa gives me a 4% cash back on gasoline up to a limit I never reach. 0.04 x $5 = 20¢. Need I say more?

 

[Another Reader]

For gas I always use the Costco card for the 4% discount and also fill up at Costco whenever possible wherever we are.

Yep. As long as you avoid the really busy hours... The Safeway is higher by a few pennies but you can save your Safeway rewards and use them when the tank is low. Requires more planning, though...

 

[ERD50]

... Need I say more?

No, but I sure wish the OP, Redbugdave, would. Is he still thinking there is an advantage to cash? I don't see it. And why wouldn't everyone have a rewards card, paying 4 or 5% on gas?

-ERD50

 

[ERD50]

Yep. As long as you avoid the really busy hours... The Safeway is higher by a few pennies but you can save your Safeway rewards and use them when the tank is low. Requires more planning, though...

The Costco card 4% on gas applies just about everywhere.

-ERD50

 

[aaronc879]

I pay cash for almost everything including gas. Luckily almost all the stations in my area still let you pump then pay. Only time I use the credit card for gas is if I didn't plan well and absolutely have to fill up when it is pouring rain or there is ice on the ground.

 

[Aerides]

I cannot remember the last time I paid cash - the time to go inside and deal with that transaction? forget it...

 

[ERD50]

I pay cash for almost everything including gas. ....

Why

-ERD50

 

[aaronc879]

Why

-ERD50

Several reasons including simply it is what i'm used to. Why change what's not broken? If I pay with a credit card then I have to remember to pay the bill when due. Using a credit card invites scams, ID theft, ect. I have family who went thru months of hell due to ID theft from a CC. Cash is easier to me. If i spent the huge amount that most of you spend then maybe a CC would make more sense but I spend less than $15K most years all inclusive and $3500 of that is on property tax which doesn't even allow CC as a payment method where I live.

 

[Sojourner]

[Y]ou've got to get to a bank to get that cash, then that sits in your wallet/drawer earning nothing. Inconvenience of leaving your car, going up to the counter to pay - no thanks, I just want to get out of there.

And as discussed, my rewards more than cover the cash discount (I'm not aware of any stations that offer a cash discount near me, but I never really looked either), so it's a non-starter anyhow. Cash just sounds like lose-lose-lose. Why do it?

-ERD50

+1

I have zero interest in going inside to stand in line to pay a cashier for gas every time I fill up. And zero interest in making regular visits to the ATM to withdraw the cash needed to do so.

 

[jazz4cash]

Watching the driver of the car in front of me go inside to pay for gas is the equivalent of having someone in line ahead of you pull out their checkbook. The time saved by paying at the pump and 5% cashback is why I dont use cash. Most of the cheaper stations here stay busy and none offer a discount for cash. The funds to pay for that gas are earning >4% in a high yield savings account for up to 60 days when payment is due

 

[Redbugdave]

No, but I sure wish the OP, Redbugdave, would. Is he still thinking there is an advantage to cash? I don't see it. And why wouldn't everyone have a rewards card, paying 4 or 5% on gas?

-ERD50

Yep...you are right. I'ma gonna get another card...a reward card.

 

[ERD50]

Yep...you are right. I'ma gonna get another card...a reward card.

And I have to thank you for starting this thread. It made me look, and I just realized that the place we normally fill up since we moved (just convenience/habit) is tied to a grocery store, and we were not getting the 4% Costco rewards! I might not have ever noticed otherwise (oddly, I do recall verifying that we get the 3% restaurant discount on that card, for other things, it is just 1% so we use our Fidelity card for 2% on everything else).

Other stations that are just as convenient are at the same per gallon price, so we will just change our habits going forward.

We don't drive much (~6,000 miles/year combined on the 2 cars), so not a major loss ( ~ $36/year roughly?), and I'd still prefer the convenience/float of the card anyhow.

-ERD50

 

[Healthy Lifestyle]

I use a cash back credit card and only go to the #1 largest gas stations in my traveling area for added safety.

 

[Sojourner]

I pay cash for almost everything including gas.

If I pay with a credit card then I have to remember to pay the bill when due. Using a credit card invites scams, ID theft, ect.

This is slightly OT, but I just have to ask. Do you not buy things online? What about airline tickets, Airbnb, rental cars, etc.? How do you pay for medical insurance? What about things like Netflix or other streaming services? I'm not sure how you would purchase any of those things (easily) without a CC.

 

[aaronc879]

This is slightly OT, but I just have to ask. Do you not buy things online? What about airline tickets, Airbnb, rental cars, etc.? How do you pay for medical insurance? What about things like Netflix or other streaming services? I'm not sure how you would purchase any of those things (easily) without a CC.

I don't purchase any of those things except the occasional online purchase. It's not a monthly thing, more like a couple times a year.