At local gas stations, gas is king

Davon Gray
Published: October 5, 2008

I am sure you’ve all seen the signs at gas stations here in Prince William County that say:  Gas $3.60 per gallon or $3.45, cash only. These signs have been around for a little while, but I just really gave
them some attention (like you, I am too busy rushing to get a space at the commuter lots). Nevertheless, the other day I asked a gas attendant what that was all about.

The answer kind of astounded me. He said, “right now, cash is more desirable than credit cards.” He went on to explain some the finer points of how it is more expensive to process credit cards and
other factors, but I was stuck on the original statement. I could only smile inside and think back 18 years ago.

Back then I was a freshman in college at the University of Southern Mississippi (and yes, I did get to see Bret Favre play in college).  My first day on campus, I was surrounded by credit card companies
practically giving away credit.  Like a dummy, I was quick to sign up.  After all, you got a free t-shirt and 2 liter bottle of Coke out of the deal. 

At the end of the month — after going on my lavished spending spree — I got my first credit card invoice with the hefty interest rate.  Let’s just say, that was the most expensive t-shirt and 2 liter Coke I
ever got for free. 

Now in 2008 we are seeing the harvest of those seeds of easy credit back in the early 1990s to post 2000 era. What that gas station is doing is more than just a cost cutting tactic. What is really
happening is that age-old American businesses are becoming more sensitive to our borrowing and spending habits.

I used to go into Potomac Mills with credit card in hand. That is no longer the case and hasn’t been for some time even before this financial mess started. My wife and I have gone on a cash only/debit
card maybe type of financial diet. 

If this latest financial crisis is teaching us anything, it should be showing us that going back to the basics on spending is the best thing for our community and the country as a whole. 

That lesson isn’t just for us adults. It should also be for our children as well, and we should take the time to tell them. 

The other day I was driving through Woodbridge when we saw one of those check cashing facilities/pay day loan shops. I took the opportunity to explain to my oldest daughter the dangers of such a place
and how they financially oppress the people they claim to serve.

I have nothing against providing a community service through local businesses. However these types of businesses — in my opinion — are a detriment to the communities they are supposed to serve.

The tremendous amount of interest they charge — which the Federal Trade Commission reports could be as high as 391 percent annually — is so absurd that it boggles the mind how they are legally
able to stay in business. 

I guess the reason is because customers are supposed to know the risks before committing to the loan — but isn’t that the same line of thinking many banks had about adjustable rate mortgages?  You
can see where that is getting us right now.

Those are the types of practices — both in credit cards and home loans — that are keeping people impoverished and which have ultimately led to this man-made financial crisis.

But I digress, and I apologize for getting off on a tangent. 

Back to my original point: it is good to see us returning to the original concept of cash being king. If it’s good for the gas stations, I have to believe it is good for our shopping centers and malls in the area.
Ultimately it is good for you and me as consumers, especially as we head into the Christmas shopping season.

I hope some local stores will take on the same idea as the gas station about giving discounts for cash purchases. Now I know many people shop online these days because of the convenience, but they
could give the same cash- only discounts for the use of a debit card.

I know the discounts would be welcomed by everyone during these penny-pinching times and it could be the retail world’s subtle way of encouraging Americans to get our fiscal house in order.

Davon Gray works in Washington, D.C., and resides in Woodbridge. Contact him at .