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Paying by credit card can save on gas

March 2, 2012

Gas stations could see an increase in credit card processing as consumers find that they can offset increasing gas prices with rewards programs offered by card companies

Gas stations could see an increase in credit card processing as consumers find that they can offset increasing gas prices with rewards programs offered by card companies. In fact, with the right card, consumers can save as much as 3 to 5 percent on their fuel costs, according to MSNBC.

“This is the perfect time to take a look at these gas cards,” says Beverly Harzog, credit card adviser for credit.com. “And many cash-back cards are offering sign-up bonuses right now.”

Some cards pay a percentage of cash back on gas purchases up to a certain amount. For example, American Express offers 2 percent back on gasoline, 3 percent back for grocery and department store purchases and 1 percent back on everything else.

Aside from major card brands, such as Visa and MasterCard, most major oil companies also have their own cards that sometimes offer better gas rewards. Marathon’s gas card pays back 6.9 percent, but rewards are only offered when customers use the cards at a credit card processing terminal at affiliated stations.

To get most out of a rewards program, customers should read the fine print and make sure to pay off the bills in full at the end of the month to avoid earning interest. 

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