Originally Posted by cbn42

From our perspective, as long as the cash discount is greater than the credit card rewards on that transaction, the cash discount is a good thing.

In my view, more options for all parties involved is always a good thing. Cash discounts are legal in every state, whether for gasoline or anything else, and I don't see any basis upon which a government could ban them (I'm talking about the US, I'm not familiar with laws elsewhere). Normally I would support the right of acquirers and merchants to specify restrictions in the contract, but the government realizes (quite rightfully) that freedom of contract does not work well when an oligopoly is involved.

As a credit card reward gamer, cash discounts give me one more option. I normally have to decide which credit card to pay for something with in order to get the most benefit, but if there is a cash discount, then my debit card or cash is also in the mix.

Oh, and you can easily get around the cash price gas stations by buying gift cards. If you buy them at a supermarket or pharmacy, you might get a category bonus to boot.