Safeway reimburses "Rewards" members overcharged at gas stations
Original post made on Aug 26, 2013
"rewards" members and pay a fine after overcharging customers at a gas station in Campbell, according to the Santa Clara County District Attorney's Office.
Read the full story here Web Link posted Monday, August 26, 2013, 7:53 AM
on Aug 26, 2013 at 8:43 am
I noticed this a month ago at the Dublin gas stations. The sign posted $3.79/gallon, and I was charged $3.89/gallon. I thought I didn't have enough "gas reward", that's why I was charged $0.10 higher. Can someone explain to me how do I get the most out of the Safeway reward card or the gas reward? At the pump, there's a note that says, hold the "yes" button for a few seconds to get your "gas reward." It never works for me.
on Aug 26, 2013 at 9:55 am
Busted! - There are 2 prices posted. If you pay cash or use your ATM for payment, you start out .10 lower per gallon then if you use a 'credit card' as payment. If you didn't get your rewards discount, either you had none available, or you didn't complete the rewards process correctly.
on Aug 26, 2013 at 10:37 am
In all fairness, they started the "tiered" pricing based on payment method quietly, and without much publicity. Signage was weak and best, practically nonexistent. They recently changed their signage to show cash/ATM vs. Credit card pricing. That may explain some of the difference between the discrepancies, however, in my opinion it's just a ploy to make more $. I do not know how much they are charged for credit card processing, for I believe the extra 10 cents PER GALLON more than covers it. On a $60 fill-up, at $4/gal and 15 gallons, they get an extra $1.50 per customer. 12 pumps, and it's an extra $18 per, what, 5 minutes? Assume 10 cycles an hour, and that's $180 per hour. They are earning several thousand extra dollars, per station, per day. I can see why they followed Arco in this path. Costco, the "other" high volume, lower cost per gallon station, doesn't even accept credit card other than AmEx. Bottom line, this is a profit center as far as their gas stations are concerned. The stations were profitable BEFORE THIS, so it's just extra revenue. Does it go to pay union wages or whatever? That's a whole other question. Bottom line: the consumer decides with their wallet.