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Can You Pay for Petrol with a Credit Card?
July 1, 2025
Quick Answer
Yes, paying for petrol with a credit card is a standard and widely accepted practice at the vast majority of fuel stations.
Should You Pay For Petrol With A Credit Card?
Using a credit card for petrol has both advantages and potential disadvantages.
Benefits of Paying for Petrol with a Credit Card
- Rewards and Cashback: Many credit cards offer points, miles, or cashback on fuel purchases, which can effectively lower your spending.
- Enhanced Security: Credit cards provide strong fraud protection, limiting your liability if your card information is compromised at the pump.
- Convenience and Tracking: Paying with a card is fast, and statements provide a clear record of your fuel expenses for budgeting purposes.
Drawbacks of Paying for Petrol with a Credit Card
- Interest Charges: If you don't pay your balance in full each month, high interest rates can quickly outweigh any rewards you earn.
- Potential Surcharges: Some petrol stations charge a fee for credit card use or offer a discount for cash, making card payments more expensive.
- Risk of Overspending: The ease of "pay at the pump" can make it tempting to spend more than you can comfortably pay back.
- Annual Fees: Cards that offer the best fuel rewards may come with an annual fee that could cancel out your savings.
How to Pay For Petrol With A Credit Card
Using a credit card at the pump is a convenient way to pay for petrol and potentially earn rewards. Here’s a general guide to making the process smooth and beneficial.
- Choose the Right Card: Select a card that maximizes rewards on fuel spending. Using a resource like the Kudos Explore Cards tool can help you find a card that aligns with your purchasing habits.
- Understand Pre-Authorization: Be aware that petrol stations often place a temporary hold on your card for a set amount, which is larger than your final purchase, before the actual transaction clears.
- Pay at the Pump or Inside: You can typically pay directly at the pump by inserting or tapping your card. Alternatively, you can pay inside with the cashier if you prefer or if the pump reader is unavailable.
- Follow the Prompts: Whether inside or at the pump, follow the on-screen or cashier's instructions. This may include entering your PIN or ZIP code for verification before you begin fueling.
- Review Your Transaction: Always take your receipt and later check your credit card statement to confirm the correct amount was charged and to track any rewards you’ve earned from the purchase.
Impact On Your Credit Score
Using a credit card for petrol can influence your credit score in several ways, both positively and negatively. Here are a few key factors to keep in mind when you pay at the pump.
- Credit Utilisation. Paying for fuel with your card increases your overall balance, which can raise your credit utilisation ratio. A higher ratio may negatively impact your credit score, so it's best to keep it low.
- Payment History. Consistently paying your credit card bill on time after buying petrol helps build a positive payment history. This is a crucial factor that can significantly improve your credit score over time.
- Hard Inquiries. Applying for a new petrol-branded or rewards credit card will trigger a hard inquiry on your credit report. This can cause a temporary, minor dip in your overall credit score.
Alternative Ways To Pay For Petrol
Using Your Debit Card
For those who prefer to avoid credit, using a debit card is a direct alternative. By linking your debit card, the payment is taken straight from your bank account, much like a standard EFTPOS transaction. This method bypasses the use of credit facilities entirely, offering a simple and immediate way to pay for fuel without accumulating debt or affecting your credit limit.
Managing Pre-Authorisation
Some financial institutions provide options to manage the pre-authorisation amount for fuel purchases. By adjusting settings within your banking app, you may be able to set a custom limit for the temporary hold placed on your funds. This feature offers greater control over your available balance and can help prevent unexpected holds that exceed your intended purchase amount.
Choose the Right Card to Pay For Petrol
With over 3,000 credit cards on the market, finding the one that gives you the best return on fuel spending can feel like searching for a needle in a haystack. The right card for you depends on your unique spending habits and lifestyle needs. Instead of guessing, you can use a dedicated tool to filter through the noise and find your perfect match based on rewards, fees, and perks that matter to you.
For those looking to get more from their credit cards, Kudos is the premier free shopping assistant to use online. We are also currently providing $20 back after your first qualifying purchase—simply sign-up for free with code GET20 and buy something from a Boost merchant.
Frequently Asked Questions
Are there extra fees for using a credit card at a petrol station?
Most stations don't charge extra, but some independent ones might add a small surcharge to cover processing fees.
Do all petrol stations accept credit cards?
Nearly all major petrol stations accept credit cards, but it's always wise to check at smaller or rural locations.
Can I earn rewards points when paying for petrol with my credit card?
Yes, many credit cards offer rewards, cashback, or points specifically for fuel purchases, making it a smart choice.
Supercharge Your Credit Cards
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Editorial Disclosure: Opinions expressed here are those of Kudos alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
