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Pay Cash for Gas for Discount?

An article in USA Today [3] mentions a new method of saving money at the pump, paying in cash. The article cites a pump in South Carolina offering a four cent discount on each gallon of gasoline in return for payment in cash as opposed to credit. Considering that credit cards charge a percentage of the sale and a flat rate, this is a win for the gas station, a business with low profit margins (all the money is in the convenience store). While this is a win for the station, it’s a lose for the consumer.

Considering you can get a 5% cashback card on gasoline purchases and gas at, say, $2.50 (good luck finding that around here) per gallon – 5% is 12.5 cents. You personally save eight cents more by using credit over cash. (if you have a 5% cashback card, if you don’t, then the cash option is better)