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Author Topic: Gas station pre-authorizations hold your money hostage for days at a time [Locked]
Sansfear  3 stars
Posts: 757
Registered: 2008-8-31 05:04:52
Normally, when I fill up, I'll see a temporary $1 pre-authorization charge appear on my account until the actual amount is posted (typically within 24-48 hours).

I stopped at a different station today and was a bit surprised today when I saw a $126 charge pending.

I did a bit of reading and apparently this is becoming the norm with many companies. Instead of merely testing your card with a $1 charge, they are locking down $50/$100/$250 chunks to make sure they get paid.

The amount seems to vary based on the gas station and the type of card, but it is perfectly legal (look for the new warning labels on the pump). American Express seems to be the worst with pre-authorization charges of up to $250.

This can be a big deal for people who use debit cards for gas.

Let's say you have $110 in the bank and you buy $20 in gas but the station pre-authorizes $100. That extra $80 us unusable until the hold clears, which can be several days (especially on weekends). People have been left with no money to buy food due to this practice, and almost no customers realize it is happening until they get a declined charge.

The only way to bypass this is to go inside the station and pre-pay a specific amount.

Elkad  2 stars
Title: aka Ebenezer
Posts: 407
Registered: 2003-9-11 22:20:55
Boy, a $250 hold would really get me in trouble. Especially if I'm using 2 pumps at once to fill both tanks.

Luckily my favorite station doesn't have card readers. Pull up, wave at clerk, who turns pump on. Pay inside when finished.

Non-locals, damn kids, and other unsavory types have to walk inside and prepay.

 

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IMHO  4 stars
Title: Official Outpost Greeter
Posts: 2,287
Registered: 2001-11-1 03:55:02
I've never ran into that.

If I pay with the 'debit' button it comes out right away. If I press the 'credit' button it may take a couple days to come out.

I guess there is 'pro's' and 'cons' using either.

 

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__Bonk__  5 stars
Posts: 5,122
Registered: 2009-7-25 03:04:52
This happens.

 

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eodoll  4 stars
Posts: 1,028
Registered: 2002-2-14 12:35:42
I only use a credit card - none the less, im glad im not month to month like that.
__Bonk__  5 stars
Posts: 5,122
Registered: 2009-7-25 03:04:52
Poor people like me have to be concerned with stuff like this. I spent a little extra for christmas and ran out of money.

 

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I keep my eyes fixed on the sun!
A change in feeling is a change in destiny.
Elkad  2 stars
Title: aka Ebenezer
Posts: 407
Registered: 2003-9-11 22:20:55
IMHO posted:

I've never ran into that.

If I pay with the 'debit' button it comes out right away. If I press the 'credit' button it may take a couple days to come out.

I guess there is 'pro's' and 'cons' using either.



If you use the debit button, it's accurate, but you don't get any of your credit card rewards (cash back, miles, etc).

 

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"I would rather be exposed to the inconveniences attending too much liberty, than those attending too small a degree of it." - Thomas Jefferson

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