Rossen Reports: The real reason gas prices are different if you pay cash vs. credit [Video]

A few of you have reached out to Rossen Reports to know why gas stations and other service providers charge different prices for cash and credit card payments.The reason is credit card processing fees, which usually range from 1.5% to 3.5% depending on the card, that merchants pay to credit card companies.You notice this mostly at gas stations because many businesses bake that fee into their prices already.Charging a credit card processing fee is legal in most states, but businesses must clearly disclose the fee.In states like Massachusetts, where credit card processing fees are illegal, businesses can offer cash discounts instead.If you believe you are being charged a fee that violates your state’s law, you can report it to your local attorney general’s office.Have a question for Jeff Rossen? He’s answering your consumer questions every Friday in the new segment “Rossen Responds.” Email your questions to him at RossenResponds@hearst.com. Want …