The New Jersey Star-Ledger reported yesterday that some gas stations in the area were employing a two tiered pricing structure to fight credit card processing costs. A sign outside one station showed two numbers representing different forms of payment; $2.93/ gallon or $2.49/gallon, an almost 20% difference.

The different payment types? Cash or credit of course. Gasoline industry experts have noticed an increase in the number of people employing plastic to pay for gas in recent years, especially when gas hit sky high records of almost $4 a gallon. For example,  70% of New Jersey gasoline purchases are made with plastic, leaving gas stations with smaller profit margins due to extra costs for processing that are not included in gas prices.

“Too often credit card fees are a cost of business customers rarely appreciate,” Sal Risalvato, who is the executive director of the New Jersey Gasoline C-Store Automotive Association, said. “Today everybody uses a Visa or MasterCard.”

The two-tiered system is completely legal, however is not an option for many gas station owners. Pumps that have the technology able to track dual-prices cost anywhere between $12,000 to $15,000, meaning many small stations simply cannot afford such a luxury…and are stuck with smaller margins due to processing costs.

An easy way gas stations can save money on processors is to comparison shop processors on TransFS.com.

Image thanks to http://www.flickr.com/photos/65013758@N00/26603770/