(Long Island, NY) Shocked by the huge price difference between cash and credit card purchases at certain gas stations, Legislator Jay Schneiderman (I-Montauk) has introduced legislation to ensure that customers are aware of the cost differential before proceeding with a transaction. After noticing several gas stations with nearly a $1 per gallon extra fee for credit and debit card use, Schneiderman felt that consumers needed to be made aware of the price difference at the automated gas terminal itself. In much the way an ATM machine prompts the user to accept the extra fee before proceeding, under Schneiderman’s bill, credit and debit card users will be asked to accept the fee before continuing with the purchase.
“Typically a driver will see the large sign in front of the gas station advertising the price and think that is what they will pay at the pump or something close to it if they use a credit card,” said Schneiderman. “However, there are several stations where the price difference is substantial and the consumer gets tricked into paying $20 or more simply because they used a credit card.” According to Schneiderman the retailer only pays a few cents more per gallon to process the electronic transaction. Although there is no legal authority to control the pricing, Schneiderman feels that the consumer should at least be aware of the extra fee. Under the proposed law, the screen would display a notification that says:
“YOU WILL PAY _____ MORE PER GALLON FOR THIS CREDIT/DEBIT CARD PURCHASE THAN IF YOU PAID CASH. PRESS YES TO PROCEED WITH THIS TRANSACTION OR NO TO CANCEL.”
“Consumers using their debit or credit cards should receive proper notification from retailers of the price difference of a gallon of gas between cash and credit purchases before they consent to that transaction,” said Legislator Schneiderman who also serves as Deputy Presiding Officer. “A hardworking resident shouldn’t be caught off guard filling up their gas tank, that’s highway robbery.”
If Schneiderman’s bill becomes law, gas retailers will have six months to make the necessary changes to the automated pumps. After six months, any operator who violates this law would be subject to a penalty of up to $1,000. This law would be enforced by the Department of Labor, Licensing and Consumer Affairs which already inspects gas pumps throughout Suffolk County for volume accuracy.
Representing the South Fork, Jay Schneiderman is the Suffolk County Legislator for the Second Legislative District. For more information, or to arrange an interview, please call (631) 852-8400.
