Do Gas Station Credit Cards Make Sense These Days?
Co-branded fuel company cards have improved in recent years and remain highly accessible — but they still can't compete with general rewards cards in terms of value and flexibility.
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Long gone are the days when the only credit cards that gas stations would take were their own private-label cards. Nowadays, most people opt for general-purpose credit cards over private-label or proprietary credit cards as the number of such accounts steadily falls.
Decades ago, proprietary or branded gas cards were a big deal. As of the late 1980s, there were more than 100 million in circulation in the United States, writes economist Lewis Mandell in "The Credit Card Industry: A History.” But in today's market, general rewards cards — those not tied to any single brand, gas or otherwise — usually offer much better value, especially when gas prices are high (more on this below). They don't come with the same drawbacks that have historically plagued branded gas cards, such as mediocre rewards and an array of restrictions on earning and redeeming those rewards, not to mention limitations on where the card itself can be used.
On the flip side, though, these downsides make branded gas station cards easier to get, so they may still be a good fit for those with fair or limited credit. Plus, some of these products have improved in recent years. For instance, cards from top gas stations like Chevron and Shell offer "open-loop" options, which means they can be used outside of just their associated brands. In fact, the BP credit card, a standout option in the market, earns rewards on non-gas spending like groceries and dining as well.
Here’s what to know if you're considering a co-branded gas station credit card.
When proprietary gas cards were popular
A bit of history: The rise of gas cards started with the Arab oil embargo of 1973 and 1974, when OPEC nations stopped selling oil to the U.S. The cost of a barrel of oil almost quadrupled, according to the Federal Reserve, which in turn drove up the cost of gas. Even after the embargo was lifted, gas prices remained high, causing many consumers to lean on credit. But to save on merchant fees, many gas companies stopped accepting any credit cards but their own. Suddenly, proprietary gas cards became highly valuable, especially to those who couldn’t afford gas upfront.
But when companies started restricting the issuance of these products, the number of outstanding cards dropped from 126 million in 1978 to 110 million in 1980, Mandell writes. By the early ’80s, gas stations began accepting general-purpose credit cards again, and proprietary cards continued to fall out of favor. Consumers in search of the best deal began opting for cards that offered rewards everywhere instead of only certain gas stations.
Examples of co-branded gas station credit cards:
With co-branded cards, rewards shrink as prices rise
It’s not surprising that people started choosing general-purpose cards over private-label ones, once they had the option. For one thing, private-label cards can be more complicated and usually less rewarding. That’s because they typically offer "rewards" in the form of cents off per gallon, rather than cents back per dollar spent, like general-purpose cards.
For instance, let's say a gas station card offers you an unlimited 5 cents off per gallon of gas purchased at its branded chains. That translates to a 2.5% rewards rate when gas is $2 a gallon — a decent deal. But that rewards rate gets lower as the price of fuel gets higher. When gas is $3 a gallon, that rewards rate drops to 1.67%. At $4 a gallon, it’s a paltry 1.25%.
Alternately, any number of general rewards credit cards on the market can earn at least 3% cash back (or 3x back in rewards or points) per $1 spent on gas purchases made anywhere, not just with one specific brand. It's not uncommon to find cards with rates as high as 5% back on fuel, with no annual fee.
Here are some other things you should watch out for with gas station credit cards:
- High interest rates. Rewards cards in general tend to have high APRs, but many proprietary gas cards take it to the next level, featuring rates north of 30%. That makes carrying a balance on these cards very expensive. By comparison, the average APR charged for credit card accounts that incurred interest was 21.52% as of February 2026, according to the Federal Reserve.
- Confusing policies. Compared with general-purpose cards, proprietary gas cards tend to have far more restrictions listed in their terms and conditions, including discount expirations, exclusions on purchases and maximums on rebates.
Which option makes sense for you?
One big upside to proprietary gas cards is that they can be easier to qualify for than general-purpose credit cards. That's because the features that make gas cards less desirable, such as higher interest rates and lower credit limits, are the very same features that allow issuers to mitigate the risk of lending to those with limited credit.
That accessibility — on top of expanded acceptance and improved discounts (sometimes as much as 10 cents back per gallon or more) — means co-branded gas station cards offer more overall value than they used to.
But for many, general-purpose rewards credit cards will still consistently outperform co-brands. You'll get rewards based on the dollar value of your purchase, rather than how many gallons you buy, and you don't have to stick with one gas brand. More than that, you can earn rewards in categories beyond only fuel.
One good example: the Blue Cash Preferred® Card from American Express. It offers 6% cash back* at U.S. supermarkets, on up to $6,000 a year in spending (then 1%); 6% cash back on select U.S. streaming subscriptions; 3% cash back at U.S. gas stations and on transit (including such things as taxis, rideshares, parking, tolls, trains and buses); and 1% cash back on all other purchases. Terms apply (see rates and fees). The card comes with a cost: a $0 intro annual fee for the first year, then $95.
Forty years ago, proprietary gas cards played an important role in credit card history and helped millions of households with few options finance their way through a difficult time. But these days, there are far better options available.
» MORE: How to choose a gas credit card
This article was written by NerdWallet and was originally published by U.S. News & World Report.
*Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.
To view rates and fees of the Blue Cash Preferred® Card from American Express, see this page.
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