This is a trend credit unions should keep an eye on, especiallythose offering credit card programs to their members.

According to the National Association of Convenient Stores, 60%of gas purchases were made by credit cards last year, namely forthe convenience plastic provides. And Visa Inc. reported that 73%of respondents to its 2008 U.S. international travel outlook studyprefer credit or debit cards as their payment method whiletraveling. Using credit cards is practical and quick--withpay-at-the-pump features, there's no need to leave your car andwait in line to pay. It can also be safer, eliminating the need tohave large quantities of cash on hand to pay for today's higherpriced fill ups--cash that can be lost or stolen. Paying by creditcard includes consumer protections against theft and fraud. And,credit card payments provide a paper trail--a big downside to usingcash. Many of these benefits would be impossible withoutinterchange fees.

In today's economy, everyone is wise to look for ways to savemoney--consumers and retailers alike. No doubt credit union membersare trying to find ways to cut back on expenses, and cash discountsat the gas pump may grab their attention. It grabbed mine. Butwhile using cash to pay for gas can save dollars when filling up,its important to weigh these cost savings--likely less than$2--against the benefits lost when not paying by credit card.

Stan Hollen
President/CEO
CO-OP Financial Services
Rancho Cucamonga, Calif.