As Gas Prices Surge, Stations Now Hold Up to $175 of Your Money When You Swipe

[question everything]

Pain at the gas pump goes beyond the high prices: Gas stations are also putting bigger holds of up to $175 on customers’ cards when they swipe. When drivers insert a credit or debit card at the pump, the gas station doesn’t know how much fuel they will buy and it places a hold on the account for an amount set by the gas station. Merchants authorize the payment networks to lift the hold once the final total of the payment is determined, though the holds can take hours and sometimes longer to settle—raising risks of overdraft penalties for debit-card users and eating into credit limits during the holds.

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For credit-card users, the hold will count against your total available credit line until the transaction settles. For those using debit cards at the pump, your account balance will decline until the transaction settles. This means buying $40 in gas could temporarily show up as a $175 purchase on your account.

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Rental-car agencies and hotels also use holds, since the businesses and banks want to make sure they are covered in case the final bill is much higher than the initially expected amount. Gas-station holds are typically lifted in two hours, according to Mastercard and Visa, but some debit-card holds might last longer based on the network the merchant is using.

Most customers will never notice these holds unless they happen to check their balances, but if debit-card users don’t have enough money in their checking account to cover the amount of the hold, the transaction may be declined or they may have to pay overdraft fees. Credit-card users could temporarily max out their credit limit until the transaction clears.

To avoid issues with holds on debit cards, check your available account balance or pay in advance at the register.

More..

https://www.wsj.com/articles/as-gas-prices-surge-stations-now-hold-up-to-175-of-your-money-when-you-swipe-11656277411 (subscription)

[Ferrets are Cool]

1. Wow, I wasn't aware.

[dflprincess]

2. I knew hotels did this

I did not know gas stations did.

I usually use a credit card at gas stations just in case their card reader has been hacked. I'd rather fight with the credit card company about fraudulent charges than with the bank to get money put back in my account.

[Ilsa]

12. Software engineers write algorithms for all types of businesses

for the hold amounts. I've met a few mathematicians in that job.

[LoisB]

3. I saw this on YouTube. Lady bought $40 worth of gas and they withheld $140 for what the

attendant said would be 2-3 days. I always pay cash for gas because years ago I read or heard that the card machines at gas stations are easy targets for card skimmers.

[Demovictory9]

4. good to know... I only use debit cards so those holds can be annoying

[Lucid Dreamer]

5. Good reasons to shun debit cards.

Holds may not be approved if above balance.

Purchases are immediately deducted from debit card balance. Your righteous disputes are done while the money is in THEIR pockets. With credit card you don't pay during disputes.

[Raine]

6. Interesting, I didn't know this ... Thanks! nt

[roamer65]

7. 99.9 pct of the time I pay cash for gas.

Usually gets me 10 cents off a gallon.

[milestogo]

8. From now on I will go into the store first and pay.

[Just A Box Of Rain]

9. I think that ending this sort of practice by passing legislation

is the sort of think that is potent with voters across voting blocks--and not just Democrats.

I hope someone takes it up as an issue.

[inthewind21]

16. It's been done

But it was done away with by the republicans. So yeah, guess it wasn't that potent.

[Tanuki]

10. Wow, I had no idea. I just assumed the pump would stop if you exceeded

the funds in your account or credit limit.

[Samrob]

11. Thanks for the info. Why isn't there a movement to regulate this? It should be made an issue.

Good old capitalism. Hotels, at least, tell you up front.

[Emile]

13. Predatory Capitalism

[Liberal In Texas]

14. With all the data breaches these companies have been subjected to I haven't used a debit

card for ages. Gas stations are especially scary with all the card readers frequently being discovered on the pumps. If somehow your PIN gets compromised the bad guys can wipe out your bank account.

At least with a credit card if unauthorized charges happen you can pretty much let the credit card company worry about it.

[Lucid Dreamer]

15. LISTEN TO LIBERAL, please.

LIT> If somehow your PIN gets compromised the bad guys can wipe out your bank account.
LIT> At least with a credit card if unauthorized charges happen you can pretty much let the credit card company worry about it.

If more people understood this the number of DEBIT CARDS would be reduced to near zero. I have a hard time getting this idea across to people trying to manage money.

DEBIT CARDS are a danger to you assets. KNOCK IT OFF ALREADY.

Not that I'm scolding or anything.