FYI/Refueling Ripoff !!!!

[SpydeRider2010]

Be very careful, using your debit card to prepay at the pump; when refueling on a road trip. My wife had the unpleasant surprise of refueling our car for $25.00, at the Signal Mountain Rd. Raceway gas station, in Chattanooga, Tn yesterday; then attempting to make a subsequent grocery purchase shortly, there after.

The second purchase was declined. While there was enough funds to actually pay for the purchase; she called the bank to determine why the transaction was declined. She was informed that the gas station purchased had not yet processed; but they had placed an AUTHORIZATION HOLD for $125.00 !!!! The bank then informed my wife, they had been flooded with calls (this week...) from customers, reporting the SAME problem. The bank also informed my wife that it should have dropped off within several hours of the ACTUAL purchase of a specific amount; but that it was still in effect, some 29 hours later; and had to be MANUALLY reversed by the bank.

So... if you're on a road trip and using your debit card; consider going inside and prepaying the pump. This will ONLY capture the amount of the sale; and NO authorization is involved. Otherwise... you may have your card MAXED out by authorizations... before you ever get to the destination. Sure it'll clear off in a few days... But in the mean time, hotel accomodations, meals, incidentals, FUEL and anything else you normally use your DEBIT card for; maybe difficult to obtain.

And using it as a CREDIT card option at the pump, may not bypass this dilema. My bank advised me to simply go inside and prepay the fuel; and this WOULD eleviate the problem. And based on the huge number of complaints they have received in the last week; they have begun to DECLINE any LARGE amounts from gas stations, based on this AUTHORIZATION CAPTURING. So be prepared for some more difficulties with electronic banking.

[ARtraveler]

Thanks for the information. Never thought about that before.

[daveinva]

So sorry for that horrible headache!

As a general rule, I only use my debit card with ATMs to get cash, or rarely, with businesses I'm certain I can trust.

Otherwise, the credit card makes more sense, particularly while traveling. It's safer for not only the great reasons you mention, but for plenty of other reasons: protection if it's stolen, protection if the number is swiped (happened to a good friend who used her debit card to pay a crooked cabbie), and as important in this day & age, protection if someone's physically tampered with the card reader. The latter particularly plagues gas stations (and ATMs, of course). I've long since gotten into the habit of always giving the card readers a good little "shake" before I swipe just to ensure that, yup, it's part of the machine and not a scammer add-on.

Plus, most cards give points; even if they're not very good points, it's still better than nothing. (Can we get BRP to sponsor a card? )

Really, the only downside to a credit card compared to a debit card is that horrible interest rate; but if you were going to pay cash anyway with the debit card, you should be able to use that same cash when you get home to pay off the credit card (an easy thing to do if you have online banking-- just pay as you go and you never deal with the interest, it's the same as cash).

Oh, one other thing: before you take that long cross-country (or OUT of country) trip, always give your credit card company a call and let them know you're going. This way, you don't end up with the card getting shut off mid-trip when the bank's computers question why the heck somebody from NYC is buying Moon Pies and RC in Alabama!

[Bootie]

I saw a warning printed on some pumps but I didn't fully understand what it meant. Now I know. Thanks a bunch.

[NancysToy]

This is a common practice, and cautions about it abound. Thanks for the reminder. The amount the station will hold needs to be more than the maximum the tank will hold, to avoid possible loss for them, so with today's gas prices, the $50 hold of years gone by seems like a bargain. As you have found, it pays to review your account ASAP, in case a hold was not properly removed. Gasoline credit cards are a safer bet, IMO...no hold is placed on those, just the charge for the exact amount of the purchase.

[bullant12]

Some debit cards can run like credit cards. When I pump up I never run it as a debit card but as credit.

Part of the reason why the gas station does that is because of the debit card bank rules. So most of the time the blame is partly on the bank rather than the gas station, although gas stations usually have their set of rules on debit cards. Hotels do the same thing, and they have a warning on the lobby stating that if you pay with debit, they will withhold a large amount from the bank account until the bill has been paid. I know it is a ripoff, but some places have to set these rules to prevent people with low funds in their bank account to purchase a big amount of gas and then not have enough funds to cover it because they withdrew the balance off after buying the gas and leaving the gas station without payment.

[Oldmanzues]

So sorry for that horrible headache!

As a general rule, I only use my debit card with ATMs to get cash, or rarely, with businesses I'm certain I can trust.

Otherwise, the credit card makes more sense, particularly while traveling. It's safer for not only the great reasons you mention, but for plenty of other reasons: protection if it's stolen, protection if the number is swiped (happened to a good friend who used her debit card to pay a crooked cabbie), and as important in this day & age, protection if someone's physically tampered with the card reader. The latter particularly plagues gas stations (and ATMs, of course). I've long since gotten into the habit of always giving the card readers a good little "shake" before I swipe just to ensure that, yup, it's part of the machine and not a scammer add-on.

Plus, most cards give points; even if they're not very good points, it's still better than nothing. (Can we get BRP to sponsor a card? )

Really, the only downside to a credit card compared to a debit card is that horrible interest rate; but if you were going to pay cash anyway with the debit card, you should be able to use that same cash when you get home to pay off the credit card (an easy thing to do if you have online banking-- just pay as you go and you never deal with the interest, it's the same as cash).

Oh, one other thing: before you take that long cross-country (or OUT of country) trip, always give your credit card company a call and let them know you're going. This way, you don't end up with the card getting shut off mid-trip when the bank's computers question why the heck somebody from NYC is buying Moon Pies and RC in Alabama!

I will add that if you go to a Rally, like GWRRA, do the same. I bought from three vendors in a couple hours. Home location and address in three state, FL, CA, and GA. Even if the Rally is instate. I bought from a vendor, home state, CA ( I think), purchase from a vendor from TX. Second refused by credit union. Paid cash, went a mile down the road to a branch office and asked why. You can guess the answer.
Oldmanzues

[Mr. White]

I have never used a debit card, ever. It gives direct route to your checking account. Several reports in Texas said folks are putting "card readers" in or on pumps and they get your info. They could max out your checking account...not a good thing.

[Firefly]

Yup--- all stations do this--- I only use debit card at ATM machines--- use Credit card for other things like Gas....

Had my card data stolen from a pump once while on a trip--- credit card company called me on Monday morning and asked about some charges--- which were not mine. We went thru my charges and determined when my last charge happened and where the fraud most likely happened. They reversed the charges immediately and sent me a new card.

Sure glad it wasn't my debit card!

[SpyderDen]

Be very careful, using your debit card to prepay at the pump; when refueling on a road trip. My wife had the unpleasant surprise of refueling our car for $25.00, at the Signal Mountain Rd. Raceway gas station, in Chattanooga, Tn yesterday; then attempting to make a subsequent grocery purchase shortly, there after.

The second purchase was declined. While there was enough funds to actually pay for the purchase; she called the bank to determine why the transaction was declined. She was informed that the gas station purchased had not yet processed; but they had placed an AUTHORIZATION HOLD for $125.00 !!!! The bank then informed my wife, they had been flooded with calls (this week...) from customers, reporting the SAME problem. The bank also informed my wife that it should have dropped off within several hours of the ACTUAL purchase of a specific amount; but that it was still in effect, some 29 hours later; and had to be MANUALLY reversed by the bank.

So... if you're on a road trip and using your debit card; consider going inside and prepaying the pump. This will ONLY capture the amount of the sale; and NO authorization is involved. Otherwise... you may have your card MAXED out by authorizations... before you ever get to the destination. Sure it'll clear off in a few days... But in the mean time, hotel accomodations, meals, incidentals, FUEL and anything else you normally use your DEBIT card for; maybe difficult to obtain.

And using it as a CREDIT card option at the pump, may not bypass this dilema. My bank advised me to simply go inside and prepay the fuel; and this WOULD eleviate the problem. And based on the huge number of complaints they have received in the last week; they have begun to DECLINE any LARGE amounts from gas stations, based on this AUTHORIZATION CAPTURING. So be prepared for some more difficulties with electronic banking.

You need to understand the merchant's side of the story. When you swipe your card, the "system" does a scan to see if it's a valid card and uses $1 as a qualifer. If the card processing company deams the card valid, they pre qualify an amount that equals the average full tank purchase. It used to be $50, then $75 and on and on with the increasing price of fuel. Personally, I don't like the limits imposed, because I have a pickup truck with a 40 gallon tank, and can't fill it for even $125. That requires me to reswipe my card. Some vendors have a fraud policy that won't let me swipe the card twice in 24 hours. So, I can't even fill the tank. Bottom line is, if your credit limit is within $100 or so of your balance, don't use the card.

[woodchuck]

Be very careful, using your debit card to prepay at the pump; when refueling on a road trip. My wife had the unpleasant surprise of refueling our car for $25.00, at the Signal Mountain Rd. Raceway gas station, in Chattanooga, Tn yesterday; then attempting to make a subsequent grocery purchase shortly, there after.

The second purchase was declined. While there was enough funds to actually pay for the purchase; she called the bank to determine why the transaction was declined. She was informed that the gas station purchased had not yet processed; but they had placed an AUTHORIZATION HOLD for $125.00 !!!! The bank then informed my wife, they had been flooded with calls (this week...) from customers, reporting the SAME problem. The bank also informed my wife that it should have dropped off within several hours of the ACTUAL purchase of a specific amount; but that it was still in effect, some 29 hours later; and had to be MANUALLY reversed by the bank.

So... if you're on a road trip and using your debit card; consider going inside and prepaying the pump. This will ONLY capture the amount of the sale; and NO authorization is involved. Otherwise... you may have your card MAXED out by authorizations... before you ever get to the destination. Sure it'll clear off in a few days... But in the mean time, hotel accomodations, meals, incidentals, FUEL and anything else you normally use your DEBIT card for; maybe difficult to obtain.

And using it as a CREDIT card option at the pump, may not bypass this dilema. My bank advised me to simply go inside and prepay the fuel; and this WOULD eleviate the problem. And based on the huge number of complaints they have received in the last week; they have begun to DECLINE any LARGE amounts from gas stations, based on this AUTHORIZATION CAPTURING. So be prepared for some more difficulties with electronic banking.

It was said that after you fill up at the pump and get your receipt, it is a good practice to push clear on the pump. That way it clears your sale and all other information.

[wyliec]

Some debit cards can run like credit cards. When I pump up I never run it as a debit card but as credit.

Part of the reason why the gas station does that is because of the debit card bank rules. So most of the time the blame is partly on the bank rather than the gas station, although gas stations usually have their set of rules on debit cards. Hotels do the same thing, and they have a warning on the lobby stating that if you pay with debit, they will withhold a large amount from the bank account until the bill has been paid. I know it is a ripoff, but some places have to set these rules to prevent people with low funds in their bank account to purchase a big amount of gas and then not have enough funds to cover it because they withdrew the balance off after buying the gas and leaving the gas station without payment.

I've always used my debit card as a credit card and have never had any funds withheld.

[bullant12]

I've always used my debit card as a credit card and have never had any funds withheld.

If you run where it asks you directly for a PIN and not a zip code and/or DEBIT or CREDIT, I cancel the transaction. So far I haven't had funds withheld running my card as credit. Plus I love USAA!!

[flamingobabe]

we had that happen to us while using a credit card in Canada a couple of years ago.......we were on an extended trip across canada....I would check the credit card every few days.....then there were several charges for $125 or $150 at stations we had stopped at....called the credit card company and they decided we needed a new card and number....so we decided on a stop in Nova Scotia at a hotel where the credit card company could send us a new card...it didn't work out well....no card arrived.....but we do travel with more than 1 card....finally got our new card some 5 or 6 days later back in the USA at a friends house we were headed to.....personally I think the card company should have told us that it was just a hold ...but they thought it was charges....you live and learn......in the end all was good..

[SpydeRider2010]

thanks for the responses to my post. ALL of you have had the same or similar experiences; and it makes for an unpleasant addition to a ride. my main point behind this post was... the SUDDEN and UNANNOUNCED/UNDISCLOSED increase in the authorization hold placed on users accounts.

just BE CAREFUL... and understand this MAY happen. and if it does... at least you know the possible reason for why a transaction has been declined.

thanks again for all of the responses.

[Cooter]

As a standard rule, whether using a credit or debit, at a fueling station, I always pre-set the amount. For example, it is usually around $20 to fill, so I pre-set the amount for $25. The card and pump will only go up to $25 and the bank will only authorize that amount. Saves a lot of headaches down the road. This is especially pertanent if you are on a weekend trip and the bank does not "see" that the transaction has been completed.

[murphybrown]

On my recent trip I used my credit card exclusively (don't use a debit card)...as I get a 5% cashback ... I would say that at least 30% of the stations do that. Even locally here...I filled Ms Spyder and notice I had a "pending" charge of $125....then within 48 hrs. the actual charge that posted was the right amount. I can see where this would be a problem with a debit card.
It one of my former lives I was a motel owner...we learned to ALWAYS high estimate what a party would be charging and we would do a pre authorization, at time of check-in, for that amount on their card. Yep, many times we had pissed off guests who would then try to use their card for the rest of their vacation and their limit was already exhausted.
As a business owner it is absolutely a MUST DO in the world we now operate in. Soooo many people are neither responsible or accountable and have no issues sticking someone with their bills. That is why this practice has become common practice...with business owners. I would say that it will become even more common. Yep, again an example of the bad apple spoiling the whole barrel of apples. Because I have come from THE OTHER SIDE...I am truly surprised that more businesses aren't doing it...and of course with gas stations they program in a preset amount...they don't distinguish between the 5 gal my Ms Spyder takes or the 22 gal. my pickup takes...
My advise is you sure don't have to like it...but will have to learn to live with it...

[tweeder]

What kind of debit card are y'all referring to? I have been to the states a couple times and they all refuse my interac(debit) and want cash or credit. I rarely carry cash as thats what the debits for. So now if I want something as small as a chocolate bar, I have to put it on my credit card. No wonder the economy is going down the tube, most people are charging more than they can pay. For me, I use the credit card like a debit card and pay what I use each day.

[mowin]

There is a automated fueling station I stop at to get diesel in my pickup. They put a $475.00 hold on my debit card everytime I get fuel there. Takes less then a day for the correct amount to post. The amount is high because tractor trailers fuel up there, and there tanks hold alot more then the 34 gal my PU takes. First time I noticed it I almost had a heart attack

[Smokinspyder]

damn thanks for the heads up . I do usually pay attention and if it doesnt look right i usually pay inside . But I like the Idea of the BRP sponsored card. that would give us points for BRP stuff or services.. hmmm

[spydee owner]

Be very careful, using your debit card to prepay at the pump; when refueling on a road trip. My wife had the unpleasant surprise of refueling our car for $25.00, at the Signal Mountain Rd. Raceway gas station, in Chattanooga, Tn yesterday; then attempting to make a subsequent grocery purchase shortly, there after.

The second purchase was declined. While there was enough funds to actually pay for the purchase; she called the bank to determine why the transaction was declined. She was informed that the gas station purchased had not yet processed; but they had placed an AUTHORIZATION HOLD for $125.00 !!!! The bank then informed my wife, they had been flooded with calls (this week...) from customers, reporting the SAME problem. The bank also informed my wife that it should have dropped off within several hours of the ACTUAL purchase of a specific amount; but that it was still in effect, some 29 hours later; and had to be MANUALLY reversed by the bank.

So... if you're on a road trip and using your debit card; consider going inside and prepaying the pump. This will ONLY capture the amount of the sale; and NO authorization is involved. Otherwise... you may have your card MAXED out by authorizations... before you ever get to the destination. Sure it'll clear off in a few days... But in the mean time, hotel accomodations, meals, incidentals, FUEL and anything else you normally use your DEBIT card for; maybe difficult to obtain.

And using it as a CREDIT card option at the pump, may not bypass this dilema. My bank advised me to simply go inside and prepay the fuel; and this WOULD eleviate the problem. And based on the huge number of complaints they have received in the last week; they have begun to DECLINE any LARGE amounts from gas stations, based on this AUTHORIZATION CAPTURING. So be prepared for some more difficulties with electronic banking.

Just reported on CNN today was that some gas stations in Texas are allegedly putting regular grade in their mid grade and premium storage and charging customers for the premium grade gas. I think CNN stated that there were 120 stations involved, and that a state crown attorney is moving forward with charges.

So, any of you Texans that are using Premium in your vehicles be aware. I do not remember the stations or supplier involved.