Heating Oil usage dates back all the way to the 1840s. The whole process and heating oil scene hasn’t changed a whole lot since then either. But, with the implementation of our Smart Oil Gauge and our FuelSnap website, monitoring your usage and ordering oil is the easiest it’s been! However, how does this affect your payment options?
Depending on who you order from, it can be a little difficult. Some dealers don’t even accept cash anymore! While some do, if you’re ordering through FuelSnap some won’t even give you the option. Some people also don’t really carry cash on them. I used to be guilty of this, but now I tend to make sure that I always have cash on me.
In this article, I’m going to break down what payment option is best to purchase heating oil with!
Purchasing with Cash vs Credit
Some small businesses will typically charge you a processing fee on credit card purchases. But depending on the business, this could also be a $.30 surcharge that can also have an additional 2.9% processing fee! This usually makes up for the cost of people coming in and buying product. Some places will even have a minimum for cards. This is typically $5 because they will end up having high fees for purchases under $5. Other businesses will not accept card at all! The Candlelight Inn located in Scarsdale NY is cash only. Their food is very good which makes it worth the cash only policy. However, while very rare some businesses will be card only. Although, this tends to be more common with online stores such as Amazon and Etsy.
What’s interesting is that some dealers won’t charge you the processing fee for their card transactions. This is becomes most oil companies will treat heating oil as a utility. Utilities are usually in the form of water and electric and are usually not taxed. But this isn’t always the case. Heating Oil is required in homes in the northeast because you’ll need to keep your home warm. Due to this, credit card companies will usually be more lenient. You can always persuade them to lower the cost of of the fee. But this fee is usually only 1-3%, so trying to fight it might not always be worth the time and effort.
However, some dealers will actually charge you a lower rate per gallon if you order heating oil with cash. This is because they’ll be avoiding the surcharges. But, if you don’t have cash on you when you place the order, it’s important to run to the bank and get some cash. This is because the dealer will not deliver without cash. However, if you already carry cash on you then you have nothing to worry about!
What are the Pros and Cons?
Right out the gate, one of the biggest pros to paying with credit card is that the transaction is always safe and secure. Some dealers will only accept credit card. This means that your transaction will be secured and their will be a paper trail as to when the transaction took place and for how much. Paying with credit card also helps with not having to wait at home for the driver to come out and deliver. This is to ensure that the dealer will have prior payment and they will come out and deliver, even if you’re not home!
But, there is one big problem that can happen if you place an order with a card. That being the refund process. If you need to cancel your order, it can take at least 3-5 days to get the full amount back with a refund. This usually isn’t a problem for a majority of people, but sometimes when you’re strapped for cash it can be pretty irritating.
Even though ordering with card tends to be safer, there are still benefits to placing your order with cash. While some dealers won’t accept cash, others will and usually tend to give you a discounted rate per gallon. However, ordering with cash means that you have to wait around all day for the dealer to come and deliver. This can be a wasted day for some people, especially if you don’t want to sit at home all day waiting.
So What’s Better? Cash or Card?
There are cash benefits to both cash and card purchases. But overall, paying with card is the best choice. There are more pros to paying with card than there are cons. Building points on your credit card for cash back is a huge bonus as well considering how expensive heating oil can cost. It’s also much easier and much more convenient to pay with card. Especially since you won’t have to wait around all day for the dealer to come from and deliver.
Paying credit card is also safer overall, as it is more reliable and can provide you with a paper trail as to when the order went through and when it was processed. It also saves you the hassle and stress in case the driver loses the money. It’s rare but not impossible! When paying with card, you don’t have to worry about the money becoming lost or stolen because the transaction is secured and safe!
Happy Heating,
Hunter
