Fuel costs the average American household $5,000 per year, up from $2,800 a year ago. With rising fuel prices, oil and gas companies are offering gas credit cards to provide a discount on the price of gas.
What is a gas card?
A gas credit card is a kind of credit card issued by a gas station, as opposed to a prepaid card. These are issued in collaboration with a bank and may offer a five or six-cent discount on each gallon.
Not just that, with a gas credit card, you can easily pay for gas at the pump while receiving perks from the card issuer. You’ll get more cash back on gasoline purchases, ranging from 2% to 3%, than on other purchases, which may be limited to 1%. You can also earn cash back on purchases other than gasoline.Â
How do Gas Cards Work?
Gas credit cards are classified into: general rewards credit cards that provide bonus rewards points on gas station purchases and branded gas cards that can only be used at specific gas stations. Let’s see how they both work.
Branded Gas Station Credit Cards
A branded gas credit card and a particular gas station chain share a close association. The card carries the brand name. Drive into any major-brand gas station, and you’re likely to see offers for these gas station credit cards attached to fuel pumps, the cash register, or in places that will catch your attention.
These cards have two main sub-categories: traditional gas station cards and gas station credit cards.
The traditional branded gas station card can only be used to buy gas at that specific station brand. You receive discounts from 3 to 10 cents per gallon. These are applied either at the pump or as credits on your monthly statement.
With gas station credit cards, you still get discounts when you spend at the brand’s gas stations. But you can also use these cards anywhere that accepts the credit-card network.
General Gas Credit Cards
There is no link between general rewards credit cards and particular gas station brands. These typically earn you rewards on most purchases, including gas purchases at gas stations — but not always. Depending on the credit card, the type of reward differs. Some offer a cash rebate, which appears on your monthly credit card statement. Other cards offer points worth at least a cent each that you can redeem for benefits.Â
Each credit card has its own set of annual fees, interest charges, joining fees, and other perks. If you’re thinking about getting the best credit gas card to choose from, this guide should help.
Some of the best gas rewards credit cards
PenFed Platinum Rewards Visa Signature® Card: Currently has the highest rewards rate at gas stations as it offers 5X points for every dollar spent on gas purchases at the pump.
Citi Custom Cash Card: Each billing cycle, the card offers 5% back on up to $500 spent in your top eligible category, then 1% after that. If your top spending category is gas and you spend the national average, this card saves you $78.4 per year.
Blue Cash Preferred® Card from American Express: Offers a competitive unlimited 3% cash back at gas stations in the US. Cardholders also receive 3% cash back on transit purchases, such as taxis and parking tolls.
Bank of America Customized Cash Rewards Card: Offers 3% cash back on the category of your choice. If you select gas stations as your choice category each quarter, you’ll earn $47.07 annually based on the national average.
PNC Cash Rewards® Visa®: Cardholders receive 4% cash back at gas stations which enables the average American to earn $89 per year from gas stations alone.
U.S. Bank Business Triple Cash Rewards: 3% cash back on eligible gas station purchases. With this card, you can get up to $47.07 back on gas alone per year based on average annual spending.
