Paying for Gas w/ VISA or Mastercard? Read this!
Paying at the pump? You may get hit with a hold on your credit or debit card.
Major credit card companies authorize holds on your card up to $175.
The next time you fill up your gas tank, you may notice a major change that could put you in a jam. Both Visa and Mastercard have authorized gas companies to place a hold on your credit OR debit card for up to $175 when you make a gas purchase at the pump. That’s a whopping $50 more than the previous pre-authorization amount of $125 that was just set in April.
What caused the sudden increase? Rising gas prices are to blame.
What does an increased gas hold mean for you?
Gas stations determine the actual amount of the hold and they can pre-authorize your card for up to $175. Fortunately, this hold is temporary, but it may take a few hours after getting your gas before being released. This time frame varies depending on the type of system businesses use.
For this reason, it is vital that you are aware of your financials before paying at the pump. If you are close to your credit limit, the hold can max out your credit card. This means you won’t be able to make purchases for a few hours until the hold clears.
If you pay with a debit card, make sure you have at least $175 in your account or you may receive an insufficient funds fee. You also won’t be able to take money out of your account until the hold is resolved.
Once the hold is released, your financial statements should reflect the true cost of the gas you purchased.
How can I avoid a hold being placed?
When you pay at the pump, gas stations don’t know how much you intend to buy. That is the reason for pre-authorizing an amount on your card. Fortunately, there is a way you can avoid this hold altogether.
Kelly Blue Book suggests that instead of paying at the pump, you pay inside first. You can either pre-pay for your gas in cash or put a smaller pre-paid amount on your credit or debit card.
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Awesome info, I usually always pay with my debit card… However, that is going to change…!! Thanks for keeping us updated Hipsterz…!!👍🤪✌️😎
You’re SO very welcome! 💕🤗
Places like Sams around me hold $100 with a debit card but no hold (yet) with credit. A way around it is to go inside & buy a prepaid Sam’s/Walmart gift card. An option at places
like Circle K is to sign up for their debit card (no credit check) & not only is there no hold but it takes a day or 2 to clear your bank. I don’t do this often but nice to not run on E the day before payday.
I wonder what we can do in NJ where we don’t “pay inside” bc we don’t pump our gas. I wonder if we say “$50 please” instead of “fill it up” if that will make it so you don’t get the hold.
NEVER PAY FOR ANYTHING WITH A DEBIT CARD. ALWAYS USE A CREDIT CARD. I worked at a bank for ten years, taking fraud claims. Fraud on your debit card means the money is gone until it gets resolved. Fraud on your credit card is not your own money missing. But nobody ever listens to me about this, including my own family…..but I’m the first person they call when their checking accounts are tanked. Sorry, I tried to warn them!
A Banker of 15 years here…you said it! Credit card every time
A loooooong time ago someone stole my debit info after I used it to get gas. Bought a few hundred dollars of KFC and a few expensive trips to gas stations. After that I stopped using debit for anything except occasionally taking money out at the bank atm. I tell my mom not to use hers at the pumps but she still does.
I had my debit card used once like that. The credit union had it turned off immediately. I had to use a credit card to get gas cause the credit union was closed and my card wouldn’t work. Went to the credit union the next day and they told me somebody bought something. I told them that wasn’t me and they said they knew that which is why they turned off my card. Walked out with a new card. Love my credit union.
I agree! We had our checking account cleaned out and it is a royal pain in the neck to get it resolved as well as weeks to get your money back. The person who stole our information wasn’t very smart though and used my card number to pay off a personal loan. Busted! I was thankful we had filed a police report. We will never have a debit card again.
I’ve been screaming this FOREVER too!
They always do this but since my tank doesn’t hold more that $40 it is released very quickly. I saw online when I got back to work that they had a $100 hold on my card but it disappeared as I was talking to the credit union and went through at the original price. Never been an issue for me in all the years I have done it. Just the dollar amount went up….
I agree, never use your debit card for any purchases. Use your credit card and pay it off each month if you can. Plus, you are missing out on cash back rewards or travel points by using your credit card. Another good thing to do, instead of signing your card, write down “Must Show ID”! That was an advice from a client of mine whose a police detective.
I buy all my gas at Costco. I wondered what they do about holds, and found this:
“When fuel is purchased with a PIN debit card or Visa card, Costco requests a “pre-authorization” from the card issuer before beginning the fueling process. This is a temporary hold that assures Costco will be paid for fuel dispensed. The “pre-authorized” amount is approved by the card issuer and may be up to $150. After fuel is dispensed, Costco IMMEDIATELY sends a “completion transaction” message to the card issuer with the actual purchase amount. It is the responsibility of the card issuer to remove the “pre-authorization” amount promptly. Please call the bank customer service number on the back of your card if you have questions or concerns.”
source: https://www.costco.com/gasoline-q-and-a.html
I always just request a dollar amount and then the card company doesn’t hold an amount. So if I say a hundred even though I know it won’t hold that much and it kicks off at 82.00 that’s all the charge is. It’s the words fill up that causes them to hold more than the actual amount. If that all makes sense?
Pay cash and no worries.
I pay for gas with my debit card (used as credit – Visa) every single time I’ve ever gotten gas, and have never once had a hold of any kind put on my card… Costco, Wawa, Sunoco, whatever. That just seems odd. Maybe PA and NJ gas stations don’t do this.
Is this if you’re paying in store or actually at the pump? I use ARCO AMPM where you can only pay by debit and I go in to pay…I’ve never noticed being charged more than what I pumped plus the .35 they charge for not having cash
Hey there! Great question. This is for when you are paying at the pump.
I have a GasBuddy card. It is linked to my bank account, much like a Target debit card. Is there a hold placed on these?
Do you like the gasbuddy card? I was wondering if it was worth it. I have a Target debit card too!!
Yes. I earn points and cash them in for a Walmart gift card.