How Do Gas Credit Cards Work?
4 Min Read | Last updated: March 31, 2025
This article contains general information and is not intended to provide information that is specific to American Express products and services. Similar products and services offered by different companies will have different features and you should always read about product details before acquiring any financial product.
Gas credit cards offer many benefits, but how are they different from other credit cards? Find out if gas credit cards are the best choice for you.
At-A-Glance
- Gas credit cards provide discounts, cash back, or other rewards when you buy gas.
- There are two main types of gas credit cards: branded gas station cards and general rewards cards.
- Branded gas credit cards provide discounts on a single fuel brand; general rewards cards provide benefits for a broader range of purchases.
The average American spends an average of $2,449 per year on fuel.1 If you’d like to see a little less of your hard-earned cash disappear each time you fill your tank, gas credit cards can offer some relief. They provide discounts or cash back on gas purchases, helping to top up your wallet each time you refill.
What Is a Gas Credit Card?
A gas credit card is a credit card that offers you a chance to save money on gas purchases. These cards may come with rewards programs that allow you to earn points or cash back when you fill up at the pump and sometimes even offer bonus rewards for using them at specific gas stations.
Gas credit cards generally fall into two main types:
- Branded gas station credit cards are closely tied to a single chain of gas stations and generally only provide discounts on that gas brand.
- General-purpose rewards credit cards provide cash back or other rewards for gas purchases at any gas station as part of a broader set of rewards.
The right gas credit card for you will depend on your fueling habits and other factors.
How Do Branded Gas Station Credit Cards Work?
A branded gas credit card is closely linked to a specific gas station chain; the brand name is usually prominently featured on the card. Drive into any of the major-brand gas stations and you’re likely to see offers for these gas station credit cards attached to fuel pumps, beside the cash register, or positioned in other locations likely to catch your eye.
If you fuel up at many different gas stations, you may start to feel that there are more gas-card options than oil wells in Texas. To sort through the confusion, it helps to divide these cards into two main sub-categories: traditional gas station cards and gas station credit cards.
- Traditional Gas Station Cards: The traditional type of branded gas station card operates more like a store card than a general gas credit card because you can only use it to buy gas at that gas station brand. You get discounts of a few cents per gallon.
- Gas Station Credit Cards: Some station brands also offer gas credit cards that are co-branded with one of the major credit card networks. You may still get discounts when you spend at the brand’s gas stations, but you can also use these cards to make purchases anywhere that accepts the credit-card network.2
How Do General Rewards Gas Credit Cards Work?
General rewards credit cards are not associated with any specific gas station brand. These may earn you rewards on most purchases, including fuel purchases at gas stations—though not in all cases, so you may need to read the card’s terms and conditions. The type of reward varies, depending on the credit card. Other cards provide points that you can redeem for travel or other benefits.3
The rewards can translate into significant gas savings:
- Some cards, such as the American Express Blue Cash Everyday Card, offer 3% cash back for gas purchases. For example, If gas prices reach $3 per gallon, 3% cash back means you get 9 cents back for each gallon purchased at any gas station.
- These cards may offer points for most other purchases, including other travel costs and everyday grocery shopping.
- Others provide benefits such as car rental insurance and extended warranty coverage.
- Some cards have introductory offers that deliver additional cash rebates if you spend a certain amount in the first few months.
Why You Should Consider a Branded Gas Credit Card
Branded cards may be easier to get if you have subprime credit. If you prefer a particular gas brand, a branded gas station card may have increased appeal.4
Why You Should Consider a General Rewards Credit Card
General rewards credit cards may offer greater benefits than branded gas station cards for many people. That’s because you can use the points or cash back rewards in many ways, not just to lower your gas costs. Furthermore, you earn those rewards with most types of spending, not just when you pay at the pump. And, with any type of credit card, interest payments can wipe out other benefits if you don’t pay the balance every month.
FAQs About How Gas Credit Cards Work
Depending on the type of gas credit card you choose, you could benefit from rewards points or cashback bonuses when filling up your tank. It’s important to review your financial situation, compare cards, and look for offers that fit your needs before committing.
Like other credit cards, a gas credit card will typically report your activity and payment history to one or more of the three major consumer credit bureaus: Equifax, Experian, and TransUnion. This means that your credit score may increase or decrease depending on how well you manage your gas credit card.5 Responsible use includes making on-time payments, making at least the minimum payment every month, and staying below 30% of your available credit.6
To maximize the benefits of a gas credit card, be sure to read the terms and conditions carefully before you apply. Look for rewards programs that match your spending habits. You can also take advantage of any additional bonus offers or discounts your credit card company offers that could lead to even more savings at the pump.
The Takeaway
Gas credit cards can cut your household gas costs by providing discounts, cash back, or other rewards. Branded gas station credit cards generally have no annual fee, but they only provide discounts at that company’s gas stations. General rewards cards offer cash back or other rewards you can earn and use more flexibly, so they may be a good option for many people.
1 “Consumer Expenditures--2023 - 2023 A01 Results,” U.S. Bureau of Labor Statistics
2 “With High Fuel Prices, Is a Gas Credit Card Worth It?,” Consumer Reports
3 “How Do Cash Back Credit Cards Work?,” Experian
4 “What Credit Card Should I Get?,” Experian
5 “What Are Credit Bureaus and How Do They Work?,” Experian
6 “What Is a Credit Utilization Rate?,” Experian
Mike Faden has covered business and technology issues for more than 30 years as a writer, consultant, and analyst for media brands, market-research firms, startups and established corporations.
All Credit Intel content is written by freelance authors and commissioned and paid for by American Express.
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