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We’re all paying record prices for gas, but if you think the guy behind the register is cleaning up, think again. As Mike Vasilinda tells us, the high prices are actually cutting into most gas stations’ profit margin.

Hear it Here: As Gas Prices, Credit Card Fees Rise, Gas Station Profits Suffer

Credit card fees are based on price, not gallons. So when the price of gas goes up, so do the processing fees. Station owner Charlie Rooney says the fees make it hard to turn a profit.

“Ironically, the higher the price of gas goes, the more people turn to the credit card, which in turn makes higher fees,” Rooney said.

The fee on this card is two percent. The fee on this one, as high as three. Which explains why not everyone takes every card.

Eight of every ten gas purchases are made with a credit card. So as the price climbs, more stations are beginning to offer a discount of a nickel or more per gallon if you pay cash. Motorists filling up liked the idea.

“I’d like to save as much as I can. It’s really expensive,” state employee Erika Norwood said.

“That would be a good thing. I just put in 50 dollars. That’s 12 gallons,” taxi driver William Wheat said.

Jim Smith of the petroleum Marketers Association says more stations will soon be offering cash discounts.

“The average retailer is around 9.8 cents gross profit per gallon,” Smith said “And if they’re giving 8 cents to the credit card company, that’s 1.8 cents a gallon gross profit, which they’re trying to make their living with and that doesn’t work.”

Some of major gas chains frown on cash discounts, but for some stations and motorists, they may be the only means of survival.