Saving on Gas: Which Rewards Credit Cards Offer the Best Deals at the Pump?
Last updated August 22, 2024
Don’t assume that gas station credit cards offer the best discounts or rebates on fill-ups. General-purpose cash-back cards are typically more rewarding. While gas station cards offer discounts of three to five cents a gallon, the best general-purpose rewards cards give rebates of three to five percent for all purchases, including gas.
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Say you’re filling up a 15-gallon tank at $3.50 a gallon. A discount of three to five cents a gallon would save you 75 cents. A discount of 10 cents a gallon nets you $1.50 cash back. Use a rewards credit card with a five percent rebate on gasoline for that same $52.50 fill-up, and you’d save $2.63.
“Go for that percentage discount, rather than just the flat five- or 10-cent discounts,” said Ted Rossman, senior industry analyst at Bankrate.com.
Gas stations offer two basic types of credit cards. Some can only be used for fuel and car washes or to pay for purchases at affiliated convenience stores. General-purpose cards are part of a credit card network, such as Visa or Mastercard, and can be used wherever those cards are accepted.
“A general-purpose rewards credit card has a number of other advantages over credit cards that can only be used at a specific gas station,” said Bill Hardekopf, CEO at BillSaver.com. “You can use and earn rewards at any gas station, so you can shop for the lowest price whenever you are, and also get rewarded for any other types of transactions you want to make, whether it be restaurants, clothes, or groceries.”
Before signing up for any rewards card, check the fine print for limits and exclusions.
Most general-purpose cards that offer cash back at “all U.S. gas stations” specifically exclude warehouse clubs, NerdWallet’s Gregory Karp, noted in a blog post. “But you wouldn’t know that if you didn’t take the time to read those cards’ disclosures,” he wrote.
Most rewards cards have an annual or quarterly cap on gas-purchase rebates, after which the cash-back discount drops to a lower rate.
- Costco’s Anywhere Visa Card by Citi: The four percent cash back on gas purchases is capped at $7,000 per year. After that, the discount falls to one percent.
- Blue Cash Everyday Card from American Express: The three percent reward on gas is limited to $6,000 per year, then drops to one percent.
But unless you’re a super-commuter these caps shouldn’t be a problem.
Another way to save is to look for stations that offer the lowest prices. Several apps, including AAA Auto Club, Gas Buddy, Gas Guru, Waze, Google Maps, MapQuest, and Upside, track prices.
Gas Cards May Be a Good Option for Some
For someone with little or no credit history, a gasoline-only credit card, like a retailer-issued credit card, may be easier to get, but it’s not the only option.
“If you’re starting out, you might be better off just getting a more general-purpose secured card, or student card, or some other type of starter card, rather than going all in on the gas brand,” Rossman said.
While gas cards typically do not charge annual fees, they often have significantly higher interest rates than general-purpose credit cards. If you carry a balance, this can really add up.
“The big pitfall, almost without exception, is that gas-company cards charge very high interest rates, often in excess of 30 percent,” Rossman said. “And I just think they’re limiting. You want to make sure you have a card that can be used broadly.”
You don’t have to pay an annual fee to get a good rewards card. Many of the cards on Bankrate’s “Best Gas Cards” list have no annual fee or waive that fee for the first year. Most require applicants to have fair to excellent credit (a credit score between 670 and 850).
Don’t use any rewards credit card (even one without an annual fee) if you don’t pay your bills in full each month. The interest charges will more than erase any cash rewards.
Ignore the Hype
Gas company credit cards typically have introductory offers—in bold print—that look very appealing. Again, read the fine print before applying. The promo reward you see, typically 25 to 40 cents a gallon, lasts for one to three months. After that, the rebate drops to the regular rate of three to 10 cents a gallon.
- ChevronTexaco’s current introductory offer of 35 cents a gallon in fuel credits lasts for 90 days. After that, the rebate drops to three cents a gallon.
- Sunoco’s reward credit card provides 25 cents a gallon savings on every fill-up for 60 days, then five cents a gallon once the promo period ends.
More Ways to Save
Stacking the savings by combining cash-back rewards with other discounts can pay off.
Many supermarket chains let you use loyalty reward points to get a discount on gasoline. Pay with a reward credit card and you can double-dip.
Most major oil companies also offer a discount when you use their app to pay, and you can use any card to do that.
“I love the idea of stacking discounts,” Rossman said. “You take advantage of hopefully a low station price. Maybe you use an app like Upside or GasBuddy to find the best prices, but then you also use that rewards credit card, and maybe you even use the gas station’s branded app as well. That can often save you an additional five to 10 cents off per gallon on top of whatever you’re getting from your credit card.”
Members of warehouse clubs, such as Costco, Sam’s Club, or BJ’s, can not only buy fuel at discounted prices, they can also save more money by using their store card to pay for that purchase:
- Costco Citi Visa Card: four percent cash back
- Sam’s Mastercard: five percent cash back
- BJ’s One Mastercard: 10 cents per gallon discount
- BJ’s One+ Mastercard: 15 cents per gallon discount
Note: With the Costco and Sam’s Club credit cards you also earn cash back or similar rewards on eligible EV charging or gas purchases at other name-brand gas stations.
The Bottom Line
You have many choices when it comes to earning rewards for your gasoline (or EV-charging) purchases. BillSaver’s Hardekopf recommends asking yourself:
- Are you OK with a card limited to one fuel company, or would you rather have one that can be used anywhere?
- How are the savings calculated—discounts per gallon or a percentage of the total sale—and which way is most beneficial to you?
- Are the benefits you’ll get worth paying an annual fee, or should you get a card with no fee?
- Are there limited-time introductory offers, such as extra cash back or 0-percent interest, that make a card worth considering?
Contributing editor Herb Weisbaum (“The ConsumerMan”) is an Emmy award-winning broadcaster and one of America's top consumer experts. He has been protecting consumers for more than 40 years, having covered the consumer beat for CBS News, The Today Show, and NBCNews.com. You can also find him on Facebook, Twitter, and at ConsumerMan.com.