I originally heard about this when I was driving a work van and tuned in to WJMN 94.5 out of Boston. The station was broadcasting an ad in which one of the radio hosts was bragging how she’s been saving all this money on her fuel ups. I’m paraphrasing but she essentially said this is real, I would never co-sign something that was anything else of the sort. I heard this ad several times and only began to look into it after perhaps the fourth or fifth time.
What is it?
There are two apps you have to use at the time you fuel up in order to get the discounted rate. I’ll explain now:
Once you install this app, you essentially must register and attach a bank account to your new account. They will mail a fuel card to your residence and you will have to use it to receive a discounted rate at the pump. When I have to gas up, I’d open the app and type in the zip code where I intend on fueling up. A list of stations will populate in your area if any are offering a discounted GasBuddy rate. It appears that Speedway’s in my area almost always have a $0.25 discount per gallon as I’ve been utilizing it since July of last year!
So what’s the catch? I have not researched this but I sense that GasBuddy is saving the gas stations money because they use a designated Maestro fuel card instead of a traditional debit or credit card which typically has a merchant processing fee attached per swipe. Again, I’d guess the GasBuddy card probably has a lower fee per swipe and the station is saving some dough. At the same time, I believe there is some incentive for business owners because it may drive more customers to a particular station.
If there is no applicable discount at a station, you can use the GasBuddy card to receive a minimal discount regardless… its almost pointless since its somewhere like a cent or two and you’d make more with a credit card cash back offer somewhat…
I will finish this article at another time… sorry 8:40am saving the draft =]