Prepay Deters Gas Thefts
TULSA, Okla. – Convenience stores and gasoline stations that let customers fill up before paying have higher incidences of gasoline theft, while drive-offs at prepay pumps are becoming more rare, the Tulsa World reports.
For convenience stores, companies approach the problem in different ways. For example, Kum & Go stores does not require prepayment before filling up because it “represents one of our core values — integrity,” said company spokeswoman Catherine Huggins. “For more than 50 years, we have valued the trusting relationships forged with our customers. We firmly believe people are trustworthy.”
Unfortunately, high gasoline prices mean more drive-offs. According to NACS data from 2007, NACS estimated that one out of 3,300 fill-ups was a gasoline theft. Some cities have passed laws requiring prepay pumps.
QuikTrip switched to prepay pumps to reduce the estimated $4 million in yearly losses because of drive-offs, said Mike Thornbrugh, company spokesman. During a two-hour window, one Tulsa-area QuikTrip store had a whopping 21 drive-offs.
Six years ago, when Hurricane Katrina pushed gasoline prices to more than $3 per gallon, “retailers that never could have imagined requiring prepay changed their minds,” said Jeff Lenard, NACS spokesman.
Prepayment dramatically lowered fuel theft. In 2005, drive-offs cost U.S. retailers $300 million; within four years, that number had dropped to $89 million. However, there are drawbacks to prepayment, such as making a “convenience store less convenient,” and encouraging use of debit and credit cards, which have transaction fees, said Lenard.