WARNING: Gas Purchases on Debit Card

[Screwed Consumer]

This just happened to me in Middlesboro, but I am sure the same thing goes on in TN also.

Found out something this morning that can be bad for the consumer. I purchased $10 in gas on my debit card from Kroger on Saturday. When I checked my online statement this morning, it is showing up as a $120 purchase. I immediately called my bank (Citizens Bank) to find out what was going on. I was told it was simply a temporary authorization on my card for up to a $120 purchase from them. I told her I had only gotten $10 and she told me it would come off in a couple of days. The problem with it is that if you only have $150 in your account, purchase $20 in gas, and then try to make a $100 purchase somewhere else on your debit card, it will be denied. Sure, you have the funds in there, but because of the $120 authorization (hold), your account thinks you only have $30 remaining so you will be turned down. The bank rep told me $120 is the maximum hold they can apply for gas, but how many people buy $120 in gas at 1 time. I know Pilot does a $75 hold and was told Brook's Oil (Shell) does a $75 hold also. I told her I had gotten 3 tanks of gas from Kroger last week (job requires lots of travel) and this was the first time it had showed up. She said this was due to a change in policy that had just started.

About a month ago daughter's boyfriend stopped and got $7.00 in gas at Shell and put it on his debit card that his employer deposits his pay check into every 2 weeks. He then went to Walmart to buy diapers for their baby and the purchase was denied. This was because he had around $80 remaining on his debit card before getting gas. When he scanned the card to get gas, the $75 hold was placed against his $80 balance for his $7 gas purchase. Because of this, instead of having a balance of $73 on his card, it was showing to only have $5 so the diaper purchase was denied. He checked with his employer about why the card was declined and it was because of the $75 hold. Since he didn't get paid for another 3 or 4 days, he was unable to touch his money and spent all the cash in his pocket for the diapers.

This is just a warning to everyone if you are getting low on funds and try to make a gas purchase. Even though this purchase goes thru, your funds may be tied up for a few days until the actual charge posts and the hold is released. I think it is bad for the consumer as we are unable to touch our money. You may want to check with your financial institution to see how it can affect your account.

[yes]

That is a bad deal, for the consumer. There are a couple of ways around it, but they can be troublesome as well.

First, if you are able to go inside the station and pay with your debit card AND enter a PIN number, they normally won't do a 'hold' on part of your money. The drawback is, of course, that you lose the convenience of paying at the pump.

Another way is to use a credit card instead of a debit card when you pay at the pump. This is also inconvenient for most debit card users.

[Polly]

The consumer gets ripped off coming and going!! I knew hotels did that - and they tell you up front - and it is usually very close to the amount of your hotel bill - They hold your room cost, taxes, and possible room service or other incidentals you might charge while there - but there is no reason for a gas station to charge you anything other than the amount you buy.

[really]

I will not be buying gas with my debit card. This is CRAZY!!

[real world]

yes wrote:

That is a bad deal, for the consumer. There are a couple of ways around it, but they can be troublesome as well.
First, if you are able to go inside the station and pay with your debit card AND enter a PIN number, they normally won't do a 'hold' on part of your money. The drawback is, of course, that you lose the convenience of paying at the pump.
Another way is to use a credit card instead of a debit card when you pay at the pump. This is also inconvenient for most debit card users.

sorry honey but that won't make no difference it is called a check card authorization ALL BANKS are doing this now. Even though it reflects in your balance the money will not come out of your account it will go off of your account as soon as the check card authorization expires....even if you go into the store it will still happen when using a debit card. yep it sucks but that's life.

[real world]

the gas station isn't "charging" you anything, this is a check card authorization from your bank.

[you can try this too]

You can also use your debit as a credit card. Just the amount that you pay for gas somes out of your account. I do it all the time because I forgot the pin to my debit. so I just push the credit button instead of debit. it works just the same. Hope this info helps.

[Screwed Consumer]

real world wrote:

the gas station isn't "charging" you anything, this is a check card authorization from your bank.

I understand they aren't charging me anything. What I am trying to say is that if someone has limited funds, this authorization "hold" will keep you from your money for a few days. Let's just hope a check doesn't try to clear that you wrote knowing you had the money...until you bought gas and they put a hold on this money. Wouldn't this result in an overdraft, then having to pay service charges to the bank and whoever you wrote the check to? That is what I am talking about.

[real world]

no if you get overdrawn just because of he check authorization it will not result in an overdraft fee because you should still show a positive balance after all is said and done.

[Toot Toot]

All the stations in town as far as I know only put a $1 hold. Also for Catdaddy's and the marathon by walmart, if you use your debit card there make sure you check your receipt. I was at Catdaddy's a while back and at the pump it always ask if you want a car wash. I pushed no and got my gas, I later looked at my receipt and there was a charge for a car wash. I went back to the store, they gave me the run around and made me come back the next day to get my money back. I just wonder how many times I paid for washes I didn't want and didn't know about.

[well]

Toot Toot wrote:

All the stations in town as far as I know only put a $1 hold. Also for Catdaddy's and the marathon by walmart, if you use your debit card there make sure you check your receipt. I was at Catdaddy's a while back and at the pump it always ask if you want a car wash. I pushed no and got my gas, I later looked at my receipt and there was a charge for a car wash. I went back to the store, they gave me the run around and made me come back the next day to get my money back. I just wonder how many times I paid for washes I didn't want and didn't know about.

no what we are referring to it showing up is on your actually balance from the bank. When you recieve a copy from the gas station it shouldn't say anything about your account balance.

[Toot Toot]

well wrote:

<quoted text> no what we are referring to it showing up is on your actually balance from the bank. When you recieve a copy from the gas station it shouldn't say anything about your account balance.

It showed on the receipt (from the gas pump) I paid for gas plus a car wash. I pushed decline or whatever for the wash but it charged it to me anyway.

[Screwed Consumer]

Just to update... Today is 1 week since I used the debit card for that gas purchase. As of yesterday afternoon, the $120 hold was still showing on my account. I have checked it every afternoon and it is on there in the afternoon, but gone in the evening after my account updates. The next day, it is back again.

[Weird]

I filled my tank and paid at the pump with my debit ran as credit...the purchase is not showeing up on my account at all and the $40 has not been taken out. I made a purchase about an hour after filling up and that purchase is showing up so I don't know why the gas wouldn't. Did I fill up for free?? Or is it gonna take a while to show on my account?

[info]

whenever you put your card into the gas pump, choose credit instead of debit. it may take a few days for your transaction to show on your account pending where your card is from but this will eliminate the hold put on your card. also, different places put different hold amounts, that is entirely up to them. unfair it is but they have a right to do it. also sometimes when you use your card the place will do a authorizing transaction of $1 to make sure that the card is real and that there is money in your account. this $1 will fall off and be replaced with the true amount that you purchased. be reminded that keeping up with your purchases is the best way to balance you accounts. also online banking is making a huge difference by offering customers the chance to manage their own accounts at home.

[all woman]

I know a guy that went into Catdaddys bought tobacco and told the clerk he was goning to get gas the clerk rang him up he, got his gas left,then got pulled over by the cops for gas drive off went back the clerk said he had been talking and forgot to ring the gas up. It was the clerks fault but my friend was called a theif I would never be back in there everyone should be careful when they go there you could be done the same way

[like to know]

info wrote:

whenever you put your card into the gas pump, choose credit instead of debit. it may take a few days for your transaction to show on your account pending where your card is from but this will eliminate the hold put on your card. also, different places put different hold amounts, that is entirely up to them. unfair it is but they have a right to do it. also sometimes when you use your card the place will do a authorizing transaction of $1 to make sure that the card is real and that there is money in your account. this $1 will fall off and be replaced with the true amount that you purchased. be reminded that keeping up with your purchases is the best way to balance you accounts. also online banking is making a huge difference by offering customers the chance to manage their own accounts at home.

Where do you bank at? The reason i ask is i have had a card for years and mine has never worked that way.Is it perhaps something new and this is the 1st time hearing about it?(for me anyways)

[Never Thought]

like to know wrote:

<quoted text>
Where do you bank at? The reason i ask is i have had a card for years and mine has never worked that way.Is it perhaps something new and this is the 1st time hearing about it?(for me anyways)

I don't know about the person you are replying to, but i bank with citizens and my card has always worked as a debit or creditI've had it since '96. You have the choice of either. Hope this answers your question.

[Fact]

Use cash. No more problems.

[info]

first century