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 onlinepanies 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 onlinepanies 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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