That's been an option for individual station owners for several years. I specifically remember one that accepted credit cards at the same prices for years, but then discontinued that.
But in California the cash vs credit/debit prices have been around for maybe at least 30 years. There are some variations, such as supermarkets with gas stations where it's a cash/debit price vs credit. I remember when Safeway had a discount for Safeway Club Card members (with no additional discount for cash/debit), but they discontinued it. There were claims that they were selling fuel below cost as a loss leader to get people into their stores, although Safeway denied that their ending of the discount was related.
The discount program was challenged by an independent gas station owner in Dixon, who claimed Safeway was engaging in illegal price-cutting designed to hurt smaller competitors. The suit relied on a state law that prohibits companies from reducing prices below costs with an intent to harm competition, said James Dombroski, lawyer for the station owner.
An analysis of Safeway records showed that its gas prices, including the 3-cent discount, were below its costs of obtaining and selling the product, Dombroski said.
"Safeway surveys its competitors twice a day and uses it to price gasoline at each station," he said.
On May 7, Alameda County Superior Court Judge Wynne Carvill issued an injunction prohibiting Safeway from using the club card discount to sell gas below cost at its Dixon store. The case was heard in Alameda County because Safeway headquarters are in Pleasanton.
