Filling up at a Charlotte gas station could cost $175. Here’s why you are paying more
If you check your bank account after filling up at the pump, you may find charges more than the total cost of fuel.
A Charlotte resident complained on the Nextdoor forum that a local Circle K placed a $10 hold on their debit card after buying fuel.
“The receipt showed I was charged $10 more than it said on the gas pump,” the person wrote. “I went inside and the lady told me it was a hold and it would come off when the bank processed the payment.”
The hold described is called a pre-authorization hold, which allows gas stations to place restrictions on certain amounts of money to ensure customers have enough money to cover their purchases, since the amount isn’t finalized until their tanks are filled, according to Bankrate, a personal finance website.
For example, if you buy $50 worth of gas, the hold on your card could be for $75, meaning you would not have access to $25 until the hold is lifted.
Here’s what to know about bank card holds.
How much can gas stations withhold?
The pre-authorization hold amount depends on what type of card you use to pay for gas.
While holds for credit cards are generally low, you could find a much higher charge on your debit card if you use it to pay at the pump.
Visa and Mastercard recently raised their debit card hold limits to $175, USA Today reported.
An authorization of just $1 is usually processed for credit transactions, according to Bankrate.
How long do holds last?
Debit card holds are not lifted until gas stations get the money from your bank, or after a certain time period, Bankrate explained.
Some holds could expire after one day, but others could take multiple days to be canceled, Bankrate says, meaning those who use their debit cards often could face negative balances and overdraft fees.
Can credit and debit card holds be avoided?
Here are some ways you can avoid a hold on your debit or credit card when you buy gas, according to Bankrate:
Enter a PIN number when you use your debit card since most pin-based transactions are processed immediately
Choose “credit” when using your debit card
Go into the gas station and pay with cash, or pay with your card for a specified amount of money
Use a prepaid card to pay for gas
Search for a gas station with a low dollar amount for pre-authorization holds
Make sure there’s enough money in your bank account to cover your purchase
Set up overdraft protection
