Many gas stations have different prices in credit card purchases and cash purchases. The customer pays a slightly higher price with credit card purchases. On the other hand, if a customer uses cash or gift cards, the (lower) cash price applies.
So I will first go to a grocery store to purchase a gas station gift card with my credit card (and thus get the cashback from my credit card company), then use this gift card to purchase gas (thus enjoying the lower cash price for the gas). It's a bit troublesome, but if I need to shop in the grocery store anyway, I do not mind purchasing a gas station gift card from them.
I don't see how the gas stations benefit from this. With different prices, they are encouraging me to purchase their gift cards using my credit card from a third party. But it costs a few cents to manufacture a gift card with the package and I assume the third party also gains some small profit in this purchase. So the gas station ends up with a smaller profit.
Is my analysis correct, or did I miss anything here?