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More Gas Stations Could Offer Cash Discounts

Most Oil Companies Ban Cash Sale Discounts

POSTED: 12:22 pm EDT July 23, 2008
UPDATED: 12:40 pm EDT July 23, 2008

Paying cash for cheaper gas could become the norm, if some Massachusetts lawmakers get their way.

More Stations Could Offer Cash Discounts

NewsCenter 5's Shiba Russell reported that some independent gas stations can offer discounts to customers who pay with cash. But a new bill would allow franchise station owners to do the same.

"My bill would simply allow cash, debit and check payment with the price deferential," said state Rep. Barbara L'Italien, of Andover.

Currently, many big-name oil companies ban their gas stations from lowering their prices for cash-paying customers.

"I don’t think I am going offer a cash discount because I think it discriminates and it puts the credit card customers at a disadvantage," said Richard Campbell, who owns Trapelo Mobil in Waltham.

Campbell said he pays up to $15,000 a month in credit card fees.

The Massachusetts Retailers' Association said the bill should be targeting the credit card companies.

"I think targeting the credit card companies may be a bigger fight for another day. I am trying to do this in the here and now before the Legislature leaves on summer break," L'Italien said.

Similar legislation recently passed in Connecticut.

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