A number of people have contacted Team Clark recently to ask about Pay with GasBuddy, the new payment option that promises to save drivers money every time they fill up.
On the radio show, Clark answered a question from Patsy who wanted to know if the new feature is legitimate. The short answer is yes.
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Pay with GasBuddy: What you need to know
This new program is able to provide discounts on gas because the Pay with GasBuddy card that you swipe at the pump is linked to your checking account.
Drivers get a discount of 15 cents per gallon on their first purchase — and at least 5 cents per gallon after that.
According to its website, Pay with GasBuddy can save drivers $340 a year when used with the GasBuddy app. Pay with GasBuddy is currently free, but a small annual fee may be added in the future.
How exactly is GasBuddy able to save you all that dough? It has to do with credit card processing charges.
Those fees are a major expense for gas station operators, so the station saves a lot of money if you pay with this card that’s linked to your checking account.
Clark’s better option…
Instead, Clark suggests that you do exactly what the gas stations don’t want you to do!
If you can pay off your credit card balance monthly to avoid interest charges, you’re better off buying gas using a rewards credit card that offers 5% cash back on fuel.
“It’s not a rip-off, it’s just not the best deal,” Clark said about Pay with GasBuddy.
Although he isn’t recommending that everyone sign up for GasBuddy’s new payment option, Clark still loves apps like GasBuddy to find the lowest gas prices using your smartphone.
Thank you to Patsy for writing in with that question! Click here submit a question to Team Clark.
Listen to Clark talk about Pay with GasBuddy on The Clark Howard Show Podcast
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