Fuel/Petrol Cards

[justplain]

somebody please explain to me why I can have a credit card and ring up thousands of rands with 55 days interest free, but I must pay 26% interest on my fuel card? why do we have such interest charges on fuel cards? and why can we not just pay with our credit cards? or am i missing the point that the banks willingly screw us?..haha

[FaNIX]

I agree... And another thing i noticed on my Credit Card bill this month, WHICH I NEVER KNEW:


Fuel, outward
electronic transfers and cash transactions always attract interest from the transaction date.

Outward electronic transfers?omg... I thought all transactions on a credit card is 55 days interest free, only know do I see that if you transfer money out of your credit card, it starts building up interest right away...bummer!

[Ecco]

You cant buy on "credit" with my garage card, so afaik you can't rake up any interest payments. Its linked to my current account.

I thought all garage cards worked the same way???

[efitol]

You cant buy on "credit" with my garage card, so afaik you can't rake up any interest payments. Its linked to my current account.

I thought all garage cards worked the same way???

aahh, it all makes sense now. garages didnt accept credit cards for some reason :/ so banks issued garage cards which were linked to the credit cards which, for some reason, garages accept :/. but garage cards are quickly becoming obsolete because more and more garages are accepting credit cards as a means of payment

[justplain]

so next time i fill up, should i ask if i can pay with my credit card? where could i find out which fuel stations would allow me to do that?

[Ecco]

aahh, it all makes sense now. garages didnt accept credit cards for some reason :/ so banks issued garage cards which were linked to the credit cards which, for some reason, garages accept :/. but garage cards are quickly becoming obsolete because more and more garages are accepting credit cards as a means of payment

I didnt know garages take credit cards now. Which ones?

[Claymore]

As I recall, by law fuel cannot be purchased on credit. So even a garage card linked to a credit card account will incur interest immediately.

[lcbxx]

As I recall, by law fuel cannot be purchased on credit. So even a garage card linked to a credit card account will incur interest immediately.
100% correct. Also, when you buy something with your VISA/MC, the retailer covers the transaction fee, whereas in iron-fist-fuel-regulated SA, you have to pay for the transaction.

[bwana]

As I recall, by law fuel cannot be purchased on credit. So even a garage card linked to a credit card account will incur interest immediately.Anyone know why? :confused:

[kokzn]

I buy petrol at BP garages, they accept Visa Electron card, which costs me only R1.50 per transaction.
Garage cards are a rip off.

[CathJ]

Anyone know why? :confused:

lcbxx said it:

...when you buy something with your VISA/MC, the retailer covers the transaction fee, whereas in iron-fist-fuel-regulated SA, you have to pay for the transaction.

If they cover the transaction fee, it counts as a petrol subsidy, which is illegal.

[Ecco]

I buy petrol at BP garages, they accept Visa Electron card, which costs me only R1.50 per transaction.
Garage cards are a rip off.

Depends on your account, my garage card is free and so are the transactions on it.

[bwana]

If they cover the transaction fee, it counts as a petrol subsidy, which is illegal.Thanks, I read lcbxx's post but I couldnt help wonder how this all developed, why all the iron fisted regulation on fuel . . . iow why they decided that buying fuel on credit cards was such a bad thing.

[Ecco]

Thanks, I read lcbxx's post but I couldnt help wonder how this all developed, why all the iron fisted regulation on fuel . . . iow why they decided that buying fuel on credit cards was such a bad thing.

I dont know, its a good question. The only thing i can think up, is that the taxman probably has a hand in this.

[Ou grote]

I don't remember either, back in the 80's before I had a license.
There's been a few threads popping up on this subject.

[mikef]

Thanks, I read lcbxx's post but I couldnt help wonder how this all developed, why all the iron fisted regulation on fuel . . . iow why they decided that buying fuel on credit cards was such a bad thing.

AFAIK it was part and parcel of the price control on petrol. By allowing garages to provide extended credit on petrol purchases is was effectively a method they could use to discount the fixed petrol price. That was why garages selling petrol on credit had to hold a deposit from the customer to cover the outstanding balance. I am not sure if this is still the position.

[bwana]

AFAIK it was part and parcel of the price control on petrol. By allowing garages to provide extended credit on petrol purchases is was effectively a method they could use to discount the fixed petrol price. That was why garages selling petrol on credit had to hold a deposit from the customer to cover the outstanding balance. I am not sure if this is still the position.Thanks - what is it with all the regulation though? Putting a ceiling on prices and protecting the customer that way is one thing but rigidly fixing them in place and not allowing for even the semblance of competition is another.

And the different octane level inland? :confused:

[CathJ]

And the different octane level inland? :confused:

Because inland is at a higher altitude, so you need a different octane level? I think, anyway... don't know enough about to cars to know why/if that's true, though :o

[bwana]

Because inland is at a higher altitude, so you need a different octane level? I think, anyway... don't know enough about to cars to know why/if that's true, though :oMaybe at one time with older, normally-aspirated vehicles, but these days . . . I dunno - I'm kind of sceptical.

[SlyFly]

Well you can use your garage card as a credit card at some shops... I know Midas takes them and you can pay Toll with them :D