Beware using your debit card at the gas pump

[Venturous Randy]

Our Engineering Lab Manager just sent the guys in the lab an e-mail where he had filled up with gas and used his debit card. When he checked his bank account balance the next morning, he had a $75 hold for that purchase. He called his bank and they told him that alot of gas stations are now doing this for purchases at the pump. One of the guys in the lab asked his wife that works at a bank and she said she is seeing a $100 hold for each purchase from the pump at some gas stations.

The last time I was on a big group ride with about 30 bikes and we stopped for gas, everyone did the "pay-at-pump" thing. If you were on a ride that had several fillups, you better make sure you have plenty of money in your checking account if you are going to pay at the pump. Otherwise those $10 purchases could end up being a lot more if the bank tags you for insuffient funds in your account because hundreds of dollars are on hold.

I called our local tv news program and they were not aware of this, but were very interested in what I had to say.

Also, the banks are not interesting in doing anything about this as they are making easy money from insuffient fund charges on each transaction involved.

It also appears that purchases paid for inside are charged only for the amount of the purchase.

RandyA

[RedRider]

Make each transaction a 'Credit' rather than a 'Debit' and this shouldn't be a problem.

 

Hotels do the same thing but for larger amounts. Thanks for the 'Heads Up".

 

RR

[eagleeye]

I always do the same as RR, when I use my debit card, I always check, credit.

 

Steve

[Venturous Randy]

I just confirmed this with the station that did the $75 hold and he also stated if you run it thru as a credit using your debit card that there is not a hold charge.

Thanks for the input guys.

RandyA

[FJR Rider]

The problem is though, even though your debit card is supposed to work as a credit card as well...some pumps still only recognize it as a debit card, even when you select credit.

 

I experienced this on the SS1000 I did last Saturday. For years I've always used my debit card for gas purchases, but here recently many pumps won't even take the card. First four fills I used the debit card, no problem...last four fills I had to use my MasterCard. Only one pump gave me the option of selecting credit when using my debit card, but it still wouldn't take the card, the other three wouldn't take the card at all as a debit.

 

During our Spring Green Ride-In two weeks ago, several of the gas stations had signs posted that they would no longer accept debit cards for outside sales. I've talked to our bank about this, and surprisingly (well maybe not...) they said they didn't know why my debit card wouldn't work as credit anywhere as it's backed as a credit card...in other words, if I have no $ in my account the $10,000 limit as credit card takes over.

 

My wife doesn't like me using the MasterCard as it means she has to balance more than just the checkbook .. I guess she'll just have to suck it up and get used to it

 

Curt

[RandyR]

You might as well get a credit card that pays back a 1% bonus, and use it for everything.

[Venturous Randy]

This is interesting as I carry both and seldom use my credit card. Most of the stations I use locally always ask if it is debit or credit and if you say debit, you have to key in the four digit pin #. But it still comes out of the debit account either way you run it.

I have friends that for years put everything on a credit card, even a $4 meal at McDonalds, but they pay everything off on the date the bill comes. There is probably more safety in using a credit card, especially like ebay purchases, just keep the balance paid off.

RandyA

[Condor]

I noticed this a couple of years ago. I went up to the local station and charged $20 or $30 bucks, and when I got home I saw what, I thought, was a charge for $50. I went back up to the station ready to rip some a$$. The guy explained that they do it to make sure the funds are there before gas is pumped, and the charge is deleted after the actual transaction is made. He was getting too many debit users who would hand them their card and go out and pum gas, and when he went to swipe the card it would bounce NSF. He has no idea how much a person will use so $50 bucks seemed reasonable at the time. Seemed reasonable to me too. I don't so much blame the dealer, but the sleeze bags that were running there little scam. Almost the same as the old drive off's of years back.

[MamaMo]

Also some debits charge for each debit transaction. Ask at your bank depends on account type at my bank. I have heard customers talk about having 50-100 on hold from using at gas stations. I always use my card as credit when possible. Just be aware that yes it comes out of the same account if used credit but a day or two later.

[Condor]

OK, what happens if you use the debit as a credit, and the funds are still NSF?? Who picks up the tab??

[MamaMo]

I have some cards that will not go through either way. The banks have the say. If they don't go through one way I will try the other. When they don't work NO GAS. Up to the BANKS.

[friesman]

yep this happened to me last summer on my trip to VW IV last summer, all along the way i was debiting gas through montana and Nevada into california, then when we get down to SLO to check in my card came up insuff funds when it check in time at the Motel6.

It kinda makes your heart skip a beat when youre that far from home, lol.

Thanks to Condor for helping me out right there, but I got on the phone with my bank the next morning to straighten it out, but it coulda been a bit interesting if I was travelling alone not having access to funds for a hotel room.

 

Brian

[SilvrT]

It surely wasn't an accountant who dreamed up that confusion "Debit or Credit" on a gas pump.

 

Up here the pump automatically assumes to authorize for $100 but you get the option to enter any value. When I gas up, I always punch in $15 and that's just about the right amount.

[V7Goose]

Absolutely no problem here - I won't use a debit card for ANY reason - nothing but a rip off. Why in the would would I want anybody to have instant access to my bank account? For ANY reason? I can't imagine any possible answer except "I wouldn't."

 

I use credit card for all purchases, then jut pay it off at every bill. Never costs me a cent, and nobody has access to my bank account.

Goose

[dmoff1698]

I carry a couple gas credit cards, simply because I like to keep track of the gas I burn. Putting all gas on a gas card makes this easy.

 

Problem is my Conoco-Phillips card has an automatic shut off after using the card 3 times in a 24 hour peroid, regardless of the amount of each purchase. This has caught me up short a time or two. An attendant can "force" the card, but they have to know how and be willing.

 

I called the company about this, explained that I rode a motorcycle and three fill-ups in 24 hours was not always reasonable.

 

They weren't interested. Said this protected them (and me) in case of card theft.

[LilBeaver]

Absolutely no problem here - I won't use a debit card for ANY reason - nothing but a rip off. Why in the would would I want anybody to have instant access to my bank account? For ANY reason? I can't imagine any possible answer except "I wouldn't."

 

I use credit card for all purchases, then jut pay it off at every bill. Never costs me a cent, and nobody has access to my bank account.

Goose

 

+1 for that.

 

As a bonus with my discover card I get 5% cash back on any fuel purchases...

[1BigDog]

:confused07:OK, so now im confused. A while back a local news show ran a piece that recommended using the debit portion of your card with your pin# to make gas purchases in order to avoid the "hold" situation. I have been using the debit ever since without any money being put on hold. If I use the Credit portion I always get a $1.00 hold for several days until the credit clears. Maybe its a state thing? Or maybe different banks have different requirements? I have heard about high dollar hold amounts but I have never been held for more than $1.00.

[Venturous Randy]

I just had a conversation with the rep from the local Bank of America. She said if you do not want to chance getting a $75 or $100 transaction hold put on your checking account (debit), as some gas stations do, use your debit card as a credit card. Evidently you may still get the $1 hold until it clears, but not the big one. The point is if a credit card is maxed out or behind on a payment, it is rejected, so if a debit card is used and works, it automatically assumes the money is there.

Now, do I put any faith in a bank rep? No, but it does make sence to me.

RandyA

[timgray]

I find that using cold hard cash and they cant mess with your money.

 

I'm tired of banks, gas stations and companies in general as their property. Whenever I ride, I carry a card but we carry that day's expenses as cash.

 

I also dont like how they are selling your information to other companies. My vacation last summer I started getting offers for the areas we traveled to, I only used the credit card for fuel and food. The bank has no right to sell my personal information like that.

 

When I confronted the bank manager at 5th 3rd he said, "sue us or close your accounts. We own your information."

 

I closed my accounts.

 

I'm a cash only guy when I travel now.

[Squidley]

Interesting....

But here in SE Michigan they charge you more for gas if you use credit. I'm not sure of the debit, but I dont believe that if you use debit that they charge you the higher rate. I could be wrong on this, all I ever use is my debit card to fuel up. I have never had any issues at all with using it, and I always use it right at the pump

[cecdoo]

Absolutely no problem here - I won't use a debit card for ANY reason - nothing but a rip off. Why in the would would I want anybody to have instant access to my bank account? For ANY reason? I can't imagine any possible answer except "I wouldn't."

 

I use credit card for all purchases, then jut pay it off at every bill. Never costs me a cent, and nobody has access to my bank account.

Goose

 

 

:sign yeah that:

[Monsta]

I find that using cold hard cash and they cant mess with your money.

 

Quote of the day!

 

When I confronted the bank manager at 5th 3rd he said, "sue us or close your accounts. We own your information."

 

I closed my accounts.

 

Second quote of the day! And a bit scary...

 

Y'all realize the less we use cash the more opportunity the Feds have to get rid of it. Cash is freedom. Start using cash more. I'm no conspiracy theorist but many people "behind the scenes" want to do away with cash. We're slowly being conditioned to do without it. "Cash back" schemes & Reward Points, the convenience...it's everywhere you want to be...etc. etc. These ploys are dumbing down America. I'll say it again.

 

Cash is freedom! Start using cash more.

 

Get off your bike and go hand the lady behind the counter $10 for your gas.

[Bob Myers]

With the recent turmoil in the credit card industry they have started closing accounts of people who pay off their balance on the day they receive the bill. We had one canceled on us while we were out of town. When we called the card company we were informed that the account was closed by them, they were restructuring all accounts with a zero balance. The fact that I had that card for 10 years and never once was late on a payment did not impress them. I have read about lots of other people having their cards canceled just like me, and for the same reason--zero balance

[Monty]

I have never had an issue with paying at the pump.

I use a Visa check card, and I just use it. I don't have to select credit or debit at the pump, so it must use it just as a credit card. Now, if I go inside, then they will ask if it's credit or debit.

[BOO]

I use credit cards all the time, don't know how to use a debit card, don't want to.

I usually use the Discover Card but when the gas was 4 something a gallon it would shut off before being completely full (My Dodge Hemi). Limit on the card for a single purchase at the pump, $75 I believe.

Like someone said the Card companies don't like being paid off every month and just every once in a while I run into a place that won't take any kind of credit card. I think that's going to happen more and more so get ready to carry cash guys.

Three times in one day would be a bummer on a bike but heck just keep trying cards till you find one that works.

BOO