Wednesday, July 9, 2008

Beware of the Bait and Switch

ABC NEWS has run a story about gas stations doing a bait and switch at the gas pump.

What they are doing, is using their billboards advertising the price per gallon. However once the credit card is swiped the price goes up considerably. One station was caught charging and additional 50 cents per gallon.

Visa charges the merchant a 2% discount rate on all purchases. For gasoline at $4.11 per gallon that means a additional 8 cents or 4.19 a gallon of gas.

However many stations are exceeding the discount rates the credit card companies are charging them.

Solution, carry the amount of cash you need to get home or to the station you know doesn't practice the bait and switch. Also before you start pumping gas, make sure the price on the meter matches the price on the bill board.

For those of you traveling this summer, another way to protect yourself from these robbers is to take cash in the form of American Express or travelers checks. They can be replaced if lost or stolen and are accepted everywhere. Your bank should provide them to you with little or no charge.

Stations involved in the bait and switch are breaking the law and should be turned into the authorities.

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