The numbers I give will be based on my area, California, and thus will vary based on location.
If you're like me, you drive up to your favorite gas station (because you know they have good gas and a low price) and start filling up. Most gas stations I've experienced have a fee if you use your credit card. I usually justify it because 5-10cent on 10 gallons is about only 50cent to a buck. Not too bad, PLUS I get money back/rewards on my credit card at gas stations. (I use a credit card for everything, yet another topic for another post).
However, today I decided to do some math while waiting in line at the gas station. At this specific gas station, it cost $4.03 for debit and $4.13 for credit. Therefore, it is about 10cent more a gallon to use my credit card. If you do the math, it cost about 2.5% more to use my credit card. My credit card gives me 2% back on gas... THUS it is cheaper for me to use my debit card and bite getting the points. (Now this could vary if your card lets you redeem your points for more than they are worth on certain purchases).
So, this got me thinking. When is it worth me using my credit card and paying the extra fee? Is it ever worth it? I could get the Costco Credit card, which is 4% back on Gas since I can't think of a time when the fee to use a credit card exceeds 4%. OR I could always fill up at places that don't charge an extra fee and have a low price (once again, like Costco). But I don't have that credit card, and sometimes those gas stations are out of the way. So, I could get into the small deets, but there are some times when it is worth paying it. For example, at let's say a gas station charges a flat 35cent fee to use a credit card. Therefore, if the price per gallon $4.03 and I get 10 gallons, it would be worth using my credit card.
Then again, is it even worth going through this hassle and trying to figure this out for only .05% to 1% on a purchase?
TL:DR; Sometimes it is not worth using a credit card at gas stations to get the points when there is a fee. But sometimes we are talking only .05 to 1% difference. You decided if it's worth doing the math.
Edit: Changed a little detail thanks to llaparatzo.
October 14, 2019 at 08:49PM
