An independent gas station sits beside a busy highway. Half of its customers are travelers passing through the area. On a sign in front of the gas station two price

tiers are advertised for the same grades of gasoline. Gasoline purchased with cash is 20 cents per gallon less than gasoline purchase with a credit card.

Why would the gas station charge more for purchases made with a credit card?

To offset processing fees charged by credit card companies

To protect credit card users from ID theft

To bring in more customers

To discourage the use of credit cards

Question

Albert Payne

Business

27 August, 03:04

An independent gas station sits beside a busy highway. Half of its customers are travelers passing through the area. On a sign in front of the gas station two price

tiers are advertised for the same grades of gasoline. Gasoline purchased with cash is 20 cents per gallon less than gasoline purchase with a credit card.

Why would the gas station charge more for purchases made with a credit card?

To offset processing fees charged by credit card companies

To protect credit card users from ID theft

To bring in more customers

To discourage the use of credit cards

+1

Answers (2)

Know the Answer?

Aubrie Livingston · Answer 1

Could be the first and the last, if you are to choose more than one. If only one, I would choose the last one.

Josue Salinas · Answer 2

It would be "To offset processing fees charged by credit card companies".

Explanation:

It wouldn't make sense to protect credit card users from ID theft, since that is taken care of at the credit card company's level.

This specific discount wouldn't necessarily bring in more customers since half the demographic is probably either cash or credit card anyway.

Lastly, credit card companies due charge fees for the use of credits cards, so a company would use this tactic out of fairness for it's customers and the profit of the business.