With high gas prices, should consumers consider using credit cards that provide rewards to pay for gas?
One should never get a credit card for a "non-credit reason." In the tax world, we have the saying, "The tax tail should never wag the economic dog." This means that a company should not do something solely for tax reasons, but rather, should have a good business reason for a course of action. The same can be said of credit cards. This said, if you are opening a new line of credit during a time of high gas prices (whether it be because you need a credit card or an additional credit card, or have to close one for a good reason and are now looking for another), getting and using a credit card that provides rewards to pay for gas could be better than the other usual reward opportunities!
What should consumers know when deciding between a general cash back credit card vs. a gas company credit card?
Consumers should know the details of each reward opportunity. For example, I would want to know what I can and cannot get cash back on, how often I can get cash back, at what rate I get cash back, if there is a limit on how much cash I can get back, and if there are any other restrictions on the card. This line of reasoning applies to gas company credit cards as well: Is it just the one company I can get my gas bill reduced at? How often can I use it? At what rate is my gas reduced? Is there a limit on how much my gas bill is reduced, and are there any other restrictions on the card? Lastly, remember, even though the gas company credit card sounds like a good idea now, it can only help with gas, as opposed to the general cash back credit card likely providing cash back for use at your discretion.
Are there any benefits or drawbacks to companies that advertise money back per gallon?
The obvious benefit is that you can reduce your gas bill. As far as I can tell, that is where the benefits end. One drawback is that you may get a gas company credit card for a company that routinely has more expensive gas than one of its competitors in your area. A similar drawback is that by getting this credit card, you are likely influencing yourself to buy most, if not all, of your gas from one company, which may or may not always be the best economic decision. This is similar to loyalty cards for gas chains (Sheetz, Wawa, etc.), with the difference that loyalty cards do not really have consequences. Credit cards do have consequences, and it is important to read the fine print on gas company credit card offers like any others, as you may find the gas company card has a lower interest rate (benefit), but you may also find (and this sounds more likely, in my opinion) a higher interest rate. Whatever you decide, always remember to monitor your credit card bills carefully, and if possible, pay off your balance every month!