I have a question regarding gas stations and pricing. I recently got gas at a gas station I don't normally visit, but I assumed they're all the same. The sign said gas was $3.89 a gallon, but as I was pumping it I noticed the sign underneath that said the price for paying with a credit card is $3.99 a gallon. I was curious if gas stations can legally charge more for people using credit cards--even if they post a sign. Being a small business owner, when we set up our account with MasterCard and Visa, we signed an agreement with them that we legally couldn't charge customers more for using a credit card. Does this also apply to gas stations?
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The Editor, Mark Bernardin, is an attorney living in MA. Please send your suggestions or comments to: TheEditor@malawforum.com
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The answers and information provided on this site are for informational purposes only and are NOT substitutes for professional legal advice. Before making legal decisions, you should discuss your specific circumstances with an attorney.
Charge more for credit card use in MA
Apparently, though it is illegal in Massachusetts to charge more for credit card use, it's OK to offer cash discounts. Big difference, right? There are regulations regarding this matter, enforced by the MA Division of Standards (under the Office of Consumer Affairs and Business Regulations). Retailers are supposed to show the highest price for the gas (the credit card price) and then include the word cash near any posted price with a cash discount (in letters at least 1/3 the size of the posted price). If you know of a gas station that violates these rules, you could call the Office of Consumer Affairs. Even if this matter is covered by our Consumer Protection Act, the amount involved probably does not warrant any other type of action.
As to your second question, your relationship with the card company is a contractual relationship. As long as the terms of that contract do not violate the law, the card company is free to negotiate terms with your company (a relatively small operation) that they may not be able to negotiate with larger companies with more sales and, accordingly, more bargaining power. Hope that helps.