Imagine pulling up to a gas station, ready to fill your tank, only to realize you’re paying nearly $1 more per gallon just for using a credit card. That’s the shock one driver shared online, igniting debate about credit card surcharges at the pump. The station advertised a cash price of $2.79 per gallon, but card users faced an eye-watering $3.69 per gallon instead. If you’re wondering how this is allowed, you’re not alone.

The surprising truth about credit card gas fees

Credit card surcharges aren’t new, but a $0.90-per-gallon markup? That’s enough to make anyone pause. In most states, surcharges are legal under a 2013 settlement with Visa and Mastercard. The goal? Allow businesses to recoup processing fees, which typically hover around 2.5% of the transaction cost. But gas stations have turned this into a double-edged sword for drivers.

According to the National Association of Convenience Stores (NACS), “Gas stations operate with razor-thin margins, often earning pennies per gallon.” To stay afloat, they pass credit card fees on to customers. Unfortunately, some take it to the extreme.

Consumer Reports has highlighted cases where drivers have unknowingly paid massive markups. One editor recalled paying $0.70 more per gallon at a station on Long Island, turning what seemed like a good deal into a $13 overpayment on an 18.5-gallon fill-up.

Adding to the confusion, some stations don’t make surcharges obvious. Federal Trade Commission (FTC) rules require businesses to disclose credit card fees, but enforcement varies. The result? Drivers are left guessing—or overpaying.

How to dodge the surcharge

The key to avoiding a hefty credit card gas fee is vigilance. First, check signage carefully. Stations must display both cash and credit prices, but the information isn’t always front and center. If in doubt, ask before swiping.

Second, consider carrying cash. While not always convenient, it guarantees you’ll pay the advertised cash price. Just watch out for hidden ATM fees, which can eat into your savings.

Third, use a rewards card strategically. Cards offering 3% to 5% cash back on gas purchases can soften the blow of surcharges. NerdWallet advises that the right rewards card “can turn a $0.10-per-gallon surcharge into a win,” depending on how much cash back you earn.

This one driver’s story highlights an uncomfortable reality at many gas stations: hefty credit card surcharges that add up quickly. While these fees are legal in most states, they can be a costly surprise if you’re not paying attention. To avoid paying more, check the station’s signage carefully, carry cash, or use rewards cards to offset the cost.