The Hidden Charge at the Gas Pump
Secret Debit Card Charges that Freeze your Funds and Cost Money
Jul 6, 2009
On the surface, paying for gas with a debit card seems like the responsible move to make. It's safer than carrying loose cash, and using cash instead of credit is always a wise choice to stay out of debt. But instead of simply paying for the gas, debit cards can rack up unexpected charges that consumers are not aware of.
Debit Card Holds
Certain services have the right to withhold an amount of money from a debit card as a form of insurance, so to speak, in case the charge from the debit card does not go through. This hold is placed on the account for a few days while the debit card charge goes through, and the money is then credited back to the account. There are no signs posted on gas pumps warning customers of this charge, but it is still very real.
This can create several problems for debit card users. Customers who use a bank debit card and do not have enough money in their account to cover the hold placed on the debit card, may find that the bank has charged them an overdraft fee. Not only does this practice seem unfair, it's frustrating for those careful spenders who have never gone over the amount in their bank accounts.
How high is the hold exactly? Typically it's a whopping $75 that stays on the card from roughly one to three days. The price is a bit more than what most people bargained for when they swiped their debit card at the gas pump. There are other charges that can trigger the hold as well. These include:
- Gas
- Hotel Rooms
- Rental Cars
These transactions can all trigger the dreaded debit card charge, though there's no way to tell if a hold will be placed on the debit card or not. Many people never run into this problem, while others have it happen all too often.
Avoiding a Debit Card Hold
While there is no guarantee that an unexpected hold won't be slapped on a debit card, there are a few precautions that can help prevent it. Keep in mind that while these steps lower the risk of triggering a hold, it can still happen. It's best to be prepared by always keeping a few hundred dollars in the bank account the debit card is linked to.
- Use gas pumps that require a PIN number. A pump that doesn't require a PIN is more likely to add a hold to the card.
- Save receipts. If there is a problem and the extra charge goes through instead of being removed, a receipt from the gas station is vital evidence in having the charge removed.
- Avoid using a PayPal debit card. These cards tend to trigger a hold on the card more often than a regular bank debit card.
- Only use a debit card if there is extra money in the bank account attached to it. Don't use the card again until it has been checked for a hold. If a hold is placed on the card, do not use it until the hold has been removed. This avoids an overdraft fee.
Ditching the Debit Card
The only way to guarantee the card will not be charged is to pay with cash. Even credit cards are at risk for having a hold placed on them, though it is less frequent and less likely to cause additional fees or problems for the customer. If a specific debit card is constantly triggering holds, switch to a credit card or carry small amounts of cash when it's time to fuel up.
Every gas station has a different policy on when they place a hold on a card, and how much the hold is for. If a situation arises where a hold has not been removed, or the hold turns into an actual charge, contact the debit card company. Let them know what's going on and follow their advice. While a hold placed for pumping gas may not seem fair, it happens all too often to unsuspecting people. When customers find themselves reaching for their debit cards, they should think again.
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