Is there a charge to the Merchant when you use a Gift Card?

[wroberts2012]

Bought at Publix a $50 Gift Card for Circle K for $40. I'm sure you have all seen the offer. Went to use it at the Circle K gas station on Pinellas next to the Chase Bank. They charged me the price for gas as if it was a credit card. I asked why but the lady was clearly working as instructed so I dropped it. Does the merchant get charged for the use of a "reloadable gift card" or is simply wrong?

[CoachKandSportsguy]

whose credit validation network is the vendor using?

There is always a charge to the vendor for credit validation, and payment transfer to vendor. . nothing happens for free, and especially with the number of choices for payment transfers to the vendor. .

the miracle of technology. . you are the product

26 days to former finance guy

[Bilyclub]

I thought Circle K gives a ten cent per gallon discount for using Easy Pay which is a debit card linked to your bank account. Otherwise what your payment is doesn't matter.

Sign Up for Easy Pay Today! | Circle K (https://www.circlek.com/promotions/sign-easy-pay-today)

[mgkw1]

This was getting you $50 of gas for $40. What is the problem. You do not get a discount on the gallon, you get extra gallons

[charlie1]

I use my circle k gift card at the pump and there is never up
charge!

[EdFNJ]

Bought at Publix a $50 Gift Card for Circle K for $40. I'm sure you have all seen the offer. Went to use it at the Circle K gas station on Pinellas next to the Chase Bank. They charged me the price for gas as if it was a credit card. I asked why but the lady was clearly working as instructed so I dropped it. Does the merchant get charged for the use of a "reloadable gift card" or is simply wrong?

Cards have to go through the same 3rd party card processor when swiped in the same gas pump or store machine that takes your credit card who then charges a fee to the merchant. GIFT CARDS are simply debit cards that are charged processor fees like any other card. Some processors charge less for debit cards, or at least used to which may have changed. The merchant does NOT have to collect fees but it's definitely not a CA$H equivalent which would qualify for the 10c savings at the station.

[EdFNJ]

I use my circle k gift card at the pump and there is never up
charge! That's because the one you go to is likely charging the same for cash or credit, NO ??? :D. SOME Circle K's offer a 10c discount for cash or for using their app where you have to link a card to it (which I would never do). They have 2 prices "cash and credit/debit". Cash saves 10c. They aren't UPCHARGING for a card, they are DISCOUNTING for cash. Most credit card banks do not permit UPcharging for credit cards or you can risk losing your processing contract .

[CoachKandSportsguy]

They aren't UPCHARGING for a card, they are DISCOUNTING for cash.

Semantics, and upcharging ,which isn't allowed, is upcharged over what that isn't cash which isn't allowed?

Just not a battle which CC aren't willing to fight. .

[crash]

That's because the one you go to is likely charging the same for cash or credit, NO ??? :D. SOME Circle K's offer a 10c discount for cash or for using their app where you have to link a card to it (which I would never do). They have 2 prices "cash and credit/debit". Cash saves 10c. They aren't UPCHARGING for a card, they are DISCOUNTING for cash. Most credit card banks do not permit UPcharging for credit cards or you can risk losing your processing contract .

The discounted price is 10 cents more than the rate for gas at stations that don’t offer the discount. So if you get the discount you pay the same rate as the station across the street and if you don’t you pay 10 cents more. It is just a way to get most people to pay more for than their gas.

[lmack]

Bought at Publix a $50 Gift Card for Circle K for $40. I'm sure you have all seen the offer. Went to use it at the Circle K gas station on Pinellas next to the Chase Bank. They charged me the price for gas as if it was a credit card. I asked why but the lady was clearly working as instructed so I dropped it. Does the merchant get charged for the use of a "reloadable gift card" or is simply wrong?


Yes, gift cards are like credit cards (not debit cards) when processing on a credit card
machine and vendors pay accordingly using their processors rates for credit cards.

[MandoMan]

That's because the one you go to is likely charging the same for cash or credit, NO ??? :D. SOME Circle K's offer a 10c discount for cash or for using their app where you have to link a card to it (which I would never do). They have 2 prices "cash and credit/debit". Cash saves 10c. They aren't UPCHARGING for a card, they are DISCOUNTING for cash. Most credit card banks do not permit UPcharging for credit cards or you can risk losing your processing contract .

That has changed. It’s legal in many states, including Florida.

[Wilson02852]

We avoid the stations adjacent to The Villages or on 301 leading to The Villages. Found less expensive gas on 441, so usually fill-up when out of the bubble.

[Pugchief]

That has changed. It’s legal in many states, including Florida.

Most credit card banks do not permit UPcharging for credit cards or you can risk losing your processing contract .

Pretty sure that UPcharging for using credit is legal everywhere. There was a lawsuit against Visa/MC a few years back. Merchants are allowed to surcharge up to, but not exceeding, their card processing rate. This rate varies wildly, from 1% or below for big retailers like Walmart and Amazon, to 5% for small low volume retailers.

[JGibson]

Use the card to buy junk food instead of gas at Circle K. ???

[fcgiii]

Yes, gift cards are like credit cards (not debit cards) when processing on a credit card
machine and vendors pay accordingly using their processors rates for credit cards.


Gift cards are issued by banks. some have fees, some don't. Read the fine print.

see Prepaid Cards vs. Gift Cards: What's the Difference? (https://www.investopedia.com/ask/answers/101314/what-difference-between-prepaid-credit-card-and-gift-card.asp)

[FredJacobs]

The discount is that you get $50 dollars worth of gas and only pay $40 for it. There is no discount at the pump. You received a 20% discount with the card.

[EdFNJ]

Pretty sure that UPcharging for using credit is legal everywhere. There was a lawsuit against Visa/MC a few years back. Merchants are allowed to surcharge up to, but not exceeding, their card processing rate. This rate varies wildly, from 1% or below for big retailers like Walmart and Amazon, to 5% for small low volume retailers. Yea, now it is up to each state. We HAD BEEN a "small retailer" for over 30 years and it was not allowed at that time. Our rate varied monthly based on volume and type of card (Amex was a killer). Connecticut and Massachusetts still don't allow it but now it seems the rest all do. It seems, after Googling, the change took place in/after 2013 which was just after we stopped being a "small retailer" and stopped being concerned about it. :)