Save $0.20/gallon Using Gas Rebate Credit Cards
I think the two most effective ways for most people to reduce gas costs is to simply (1) consciously attempt to drive less and (2) use a credit card that offer rebates on gas purchases. Getting 5% back is like saving nearly 20 cents per gallon (more in some places), much easier than to looking for a gas station with a lower price by a few cents or sweating profusely with no air conditioning on. Here are some good ones…
Discover Open Road
The Discover Open Road Card offers 5% cashback on gas from any station and auto maintenance purchases on your first $100 spent each billing period, and up to 1% tiered on all other purchases. No annual fee.
PenFed Platinum Rewards
The PenFed Platinum Rewards card offers 5% back on gas purchases paid at the pump, 2% back at the supermarket, and 1.25% on all other purchases. No annual fee. To apply you must first join the Pentagon Federal credit union, where you must either have the appropriate military affiliation or join the National Military Family Association (NMFA) for a fee.
Chase Freedom Visa
The Chase Freedom Visa Card actually offers a 3% cashback rebate on your top 3 “Everyday Spending Categories” (on the first $600 of purchases each month), where gas and groceries are two popular options. In addition, if you wait and redeem $200 in rewards, you can get a $250 check. This makes it up to 3.75% back on gas. No annual fee. In addition, there is currently a $50 sign-up bonus after your first purchase.
Business Cards
Here are some business cards with good cash back. Most individuals (sole proprietors) can simply use their Social Security number for the Business Tax ID number, and their name as the business name if asked.
American Express SimplyCash
The American Express SimplyCash Business Card offers 5% cash back on automobile gas bought anywhere (up to $12,000 per year). 5% back on office supplies and your wireless telephone bill as well, and 1% back on everything else. No annual fee.
American Express Costco TrueEarnings
The TrueEarnings Card from Costco and American Express offers 5% back on automobile gas bought anywhere, including at Costco gas stations. You also get 3% on all restaurants, 2% on travel, and 1% on everything else. No annual fee. (The regular (non-business) version of the card gets 3% back on automobile gas, 3% on restaurants, 2% on travel, and 1% on everything else.)
Find more in Credit Cards, Deals & Offers | 5/12/08, 4:37am | Trackback
May 12th, 2008 at 6:12 am
At today’s prices, that Discover Open Road card doesn’t look to be that hot, given the $100 per month limit on the 5% back, aka $5 per month. $100 in gas purchases is only about 2 fillups these days. I looked at my last Direct Rewards card bill, and I had over $300 in gas charges last month - that probably doesn’t count a couple purchases that my wife made on her other card when she forgets which one to use.
May 12th, 2008 at 6:18 am
What about CITI driver’s edge? That’s a full 6% for a year plus you get $1 for every 100 miles you drive.
I’m LOVING the 6% right now. Everytime I fill up I at least think that I’m getting $4 for the miles I drove and then 20 cents off per gallon!
May 12th, 2008 at 7:01 am
You mention to “consciously attempt to drive less”, but you don’t specifically talk about car-pooling. I have a 30 mile commute (15 each way), and luckly I have two coworkers that live within a mile of me. With gas currently at $3.90 a gallon where I am, the three people in my commute are paying $1.30 a gallon for during our commute. No credit card can ease this much squeeze at the pump.
May 12th, 2008 at 7:25 am
Great post. I would also consider buying a more fuel efficient vehicle as a way to cutting on gas expenses as well as commuting to work with others..
May 12th, 2008 at 8:03 am
While true that the Open Road card limits you to $100/month, both my wife and I each have our own card getting the family up to $200/month in 5% off gas.
There is also the Citi Cash rewards card which gives 5% back on all purchases for 3 months which might be good during the summer season.
May 12th, 2008 at 8:17 am
I just applied for a new CC, Chase Freedom PLUS which has 3% cash back on the top 6 categories (there is no cap on this one). 1% on everything else. Still has the sign-up bonus $50 and the bonus $50 when you wait and accumulate $200. There is a $30 annual fee, waived for the first year. I don’t see it online, but I did apply for it in person at a Chase branch.
May 12th, 2008 at 8:22 am
Isn’t the American Express Costco TrueEarnings in fact capable of giving you 7% back? 5% from the cc itself, and 2% from being an executive member.
May 12th, 2008 at 9:07 am
Nice list.
Discover’s Open Road has some gift card options which works out to something like a 6.25% return. Throw in that there is a 6-12 month 0% purchase APR and it’s over 7% return. This card isn’t so great for people that drive a lot due to the $100 / month restriction.
As mentioned by justin, I think Citi’s Driver’s Edge remains the top gas card for a 12 month period for those who haven’t used the promo rate. I believe this card is the winner although it moves down on the list after the 6% cash back period ends.
Finally, Associated Bank has a 5% cash back card on gas, groceries and drugs. I think the annual limit on cash back is $300 per year so that’s $6000 worth of gas if used exclusively for that purpose. Request in $50 increments. Details at FW.
For some people, keeping tires properly inflated, driving the speed limit and taking crap out of the trunk probably ends up saving more money than any credit card.
May 12th, 2008 at 9:41 am
I use the American Express SimplyCash (business card). You get cash back as a credit to your statement rather than having to request a check when you hit a certain dollar amount in savings.
May 12th, 2008 at 10:20 am
Actually, the American Express Costco card only gives back 3% and then an extra 2% if you are an executive member.
May 12th, 2008 at 11:26 am
Thanks for the post.
I did not realize that Discover limit each billing period to $100. I just check my statement, and the amount over is not even 1% rebate. It was like 0.25% rebate for the amount over $100. not good.
May 12th, 2008 at 12:36 pm
YML, the business version of the American Express Costco card gives back 5%!
May 12th, 2008 at 2:26 pm
With the current 10% promotion from most grocery stores, here is the best way to maximize your gas savings:
- Buy grocery store’s gift card and get 10% additional. They don’t require your stimulus check for the method of payment.
- When you use your credit card, you can get 5% extra. A lot of credit cards offer 5% for grocery.
- Use your grocery’s gift card to buy gas gift cards.
- Or use your grocery’s gift card to buy ebay gift cards, and find the best deal gas gift cards from ebay and pay it using your ebay gift cards.
May 12th, 2008 at 2:49 pm
Sam, you are right. I signed up for the wrong one! I need to switch to an AMEX Businesss Costco card. Thanks for the tip.
May 12th, 2008 at 4:26 pm
I use Pentagon Federal Credit Union credit card and like it along with there other services.
May 12th, 2008 at 6:07 pm
The Costco executive membership excludes gas and alcohol (I think alcohol) purchases in the 2% rebate.
May 12th, 2008 at 9:33 pm
Anyone else notice Chase’s attack on the bottom feeders like ourselves?
Chase cardmembers currently receiving promotional pricing, or Chase cardmembers with a history of only using their current or prior Chase card for promotional pricing offers are not eligible for a second Chase credit card with promotional pricing.
May 12th, 2008 at 10:37 pm
One thing should be mentioned about the the Amex Costo Business card is that the rebate is issued once a year. You receive it in the form of a Costco coupon which is redeamable for cash at Costco. Or since I buy soo much stuff at Costco It’s a free shopping trip for me. In mymoneyblog fashion, someone should calculate the discount to the actuall savings as the savings are not given as cash each month. Of the savings earned in a calendar year, i’ve lost at least 2% of that to interest I could have accumulated with another 5% rebate card.
May 13th, 2008 at 9:11 am
one supplement: Exxonmobil Master Card offers 3% statement rebate on ExxonMobil purchase (and 1% on all other purchases).
May 13th, 2008 at 6:41 pm
I’m not sure if this is happening everywhere; but gas stations in the northeast have recently been posting signs on the pump and street reading: Unleaded Cash and Unleaded Credit. The cash price is less than the credit. However, I’ve seen “cheap” gas stations (the off-brands, or locals who were always less than the “name brand” gas stations for credit or cash) are now showing cash prices of ~3% less than their credit price; but their credit price is now the same as the “name brand” gas stations. Is this legal? Is this against the retailer’s/merchant’s agreement with their banks (and Visa/Mastercard)? A closer look at my state’s laws, as long as the gas station posts clearly on all pumps and street signs the cash and credit prices then they are okay. But, imho they are violating visa/mc agreement indirectly by discounting cash but credit price “more” or matching their competitors. Either way, it seems that using a rewards credit card at these gas stations with cash and credit pricings may not be beneficial, since you’re paying extra for the gas. Of course, as consumers, if we want to use our credit card, we can just avoid these two pricing gas stations and opt for the “name brand” gas station who has cash or credit, one price.
May 13th, 2008 at 10:52 pm
I’m not clear on the “first $600 of purchases” thing from Chase. Does that mean only the first $600 I spend in the month they look at to give me 3% back, or that I can get 3% back on the first $600 that fall into my 3 categories for the month? If it’s the former, I think I may regret changing to the new format someday.
May 14th, 2008 at 1:38 am
Mike H - I am pretty sure it is the latter. As long as you spend $600 within 3 categories, you’ll get 3% on $600 each month.
May 14th, 2008 at 6:25 am
SavingEverything -
I’ve seen cash/credit pricing a stations forever. They are definitely the mom/pop shops that have the highest unnegotiated fee with the plastic companies. Sadly, there are too few mom/pops around anymore. Well, maybe not sadly, they always were more expensive!
I just think the 3 cents per gallon of the last decade just wasn’t worth advertising since it really didn’t draw the crowd in for the additional hassle of different pricing on the pumps and additional signage. Now that the 3% is as high as a dime a gallon, it makes a difference for marketing.
May 14th, 2008 at 6:41 am
I decided to get the AmEx SimplyCash card. You can’t beat the 5% AUTOMATIC cash back.
May 14th, 2008 at 11:03 am
Correction: The American Express SimplyCash Business Card offers 5% cash back on gas bought anywhere - not exactly.
Only stand-alone gas stations (and only big brands) are considered eligible for 5%. Others (supermarket and club-affiliated) are plain 1%
May 14th, 2008 at 5:32 pm
I highly recommend Chase Freedom Plus as an overall cash rewards card. As for saving on gas, Costco TrueEarnings worked the best for me
May 14th, 2008 at 8:21 pm
Someone just mentioned that there are many cards offering 5% rebate on groceries. I guess I’m really ignorant as I’m not aware of a single one. Can anyone give me a few names? Thanks a lot!
May 15th, 2008 at 8:09 am
does anyone know, if i signed up for one of these cards today, when would I receive the card?
May 16th, 2008 at 7:27 am
There is still the problem that these cards still just induce people to pay for things with credit - the I’m getting xxx% back rather than getting people to reconsider their driving expenses and tighten the belt. Not sure if chasing the rebate kickback really saves in the end - because if you spend more or end up getting gas at station using credit (my mom & pop shop has a 6 cent surcharge for credit), you may end up paying more in the end if you don’t payoff the card completely.
I would guess one month’s finance charge on a $250 credit balance probably swipes out the rebate. Goes back to Jonathan’s discussion about how far would you drive for a lower priced item from a while back.
Pay cash at the pump and get the instant savings.
June 16th, 2008 at 5:33 am
[...] $10 from Costco American Express Card If you have a Costco American Express card, they are offering a promotion where you can earn a free $10 Costco Cash card for paying your wireless phone plan automatically with the card. This card is one of the better gas rebate credit cards. [...]
June 30th, 2008 at 9:57 am
How many cards is too many to have? Currently, I have 3. I have an Discover Open Road that I use for $100 per month. Then I have a Mastercard Worldpoints and Chase Freedom VISA that both give 1% cashback on everything.
The Freedom I keep open because it’s my oldest account and the Worldpoints, alas, I got primarily because it had my college logo on it. But I’m looking at AmEx cards as being really attractive… but how many are too many? I don’t carry balances on the cards I have currently, except for daily/monthly spending that I pay off weekly.
July 16th, 2008 at 5:49 am
[...] Discover Open Road card gives 5% back on gas all year round, and the Discover Business card is currently offering a $100 cash bonus after making $1,000 in [...]
August 22nd, 2008 at 1:36 am
I am so disappointed with the Chase Freedom card. Is anyone else having this problem? I signed up for the card for the 3% cash back on my top 3 spending categories (Grocery stores, Drug stores, and Gas). Two statements and a couple of thousand dollars later, I examine my rewards details and I find that EVERY gas station I have visited was not categorized as Gas, but “Vehicle Services”, and EVERY Drug store and Grocery store I visited was categorized as “Other”. So I have not gotten 3% back on anything, even though I used the card at Getty, Hess, Exxon, Lukoil, CVS, A&P, Food Lion, Whole Foods, and Pathmark.
Chase representative says that it’s because of the way the merchants have chosen to categorize themselves, and they can’t do anything about it, and my rewards are all correct. Even though all of those merchants are correctly classified for rewards when I use any of my Citi credit cards.
Is that some kind of bait and switch or what? Is there anything I can do about that?
August 22nd, 2008 at 3:08 pm
it happens to me similiarly. in many months i find i didn’t get the full 3% reward. chase rep said they couldn’t pre-determine the merchant’s category. that means, i can know whether a merchant qualifies for 3% only after i get 1% reward and call chase rep to classify whether that a particular purchase did not get 3%. i stopped doing that and only charge on the same stores that i knew offers the 3% reward.
besides, $600 per month is quite limited. so, i have 3 chase freedom cards in use concurrently.
October 1st, 2008 at 4:22 pm
I went on the BP website to find BP station locations in my area. It produces a list of all Arco and AM/PM stations. Apparently there are no BP stations here (I didn’t think I’d seen any), but Arco and AM/PM are owned by BP. Does anyone know if this card works at those stations? If so, that’d be great, because those usually have the lowest prices.
The one problem that might exist is that I seem to recall that they didn’t accept credit cards at the last few Arcos I went to. It’s probably been 2 or 3 years since I went to one. Does anyone know if that’s still the case?
January 17th, 2009 at 8:55 pm
Amanda:
I suspect a lot of those stores have purposely listed their codes as “other” so they could avoid paying extra merchant charges for rewards card purchases. I’ve heard that the credit card co’s will charge merchants extra for every rewards card transaction. No accountability on either side of the fence! Too bad the consumer can’t pawn off money responsibilities on someone else, like how corporations do.
RE: the gas stations cash/credit prices, when I lived in NYC every mom & pop store was charging customers a fee to use a card (or they had a ridiculous minimum purchase like $10-$20). Who can possibly spend $10 in a bodega (convenience store in NYC, for those not familiar with the lingo).
And that is definitely against MC/Visa merchant rules. They are not allowed to charge a fee or require minimum purchases. My response to any store clerk that pulled that one on me was to simply walk out and leave my items at the counter. Their jaw would drop to the floor usually.
February 10th, 2009 at 12:47 am
[...] Money Blog has a great post about how to save $.20/gallon on gas with some of the better cash back rebate cards on the market. With gas prices at record highs, [...]
May 17th, 2009 at 12:20 pm
Just a heads up, Chase Freedom Visa just sent me a note stating that the $50. bonus (when you save up $200. in rewards) deal will end June 30, 2009.
May 18th, 2009 at 7:43 pm
Hi JohnnyV,
Your note that Chase will not offer $250 for 200 reward points after June 2009 is an electronic note or a stand-alone letter or else?
I did not receive anything but, if so, I need to react promptly as I have 2 cards with $170+ bonus by now.