Comments on: Why I Won’t Be Using My Debit Card To Purchase Gas Anymore http://notmadeofmoney.com/blog/2007/10/why-i-wont-be-using-my-debit-card-to-purchase-gas-anymore.html Save Money - A Personal Finance Blog By A Husband And Wife Fri, 21 Nov 2008 18:32:31 +0000 http://wordpress.org/?v=2.6 By: Sundevilsfan http://notmadeofmoney.com/blog/2007/10/why-i-wont-be-using-my-debit-card-to-purchase-gas-anymore.html#comment-52806 Sundevilsfan Mon, 12 Nov 2007 06:02:51 +0000 http://notmadeofmoney.com/blog/2007/10/why-i-wont-be-using-my-debit-card-to-purchase-gas-anymore.html#comment-52806 I don't recall ever having this problem.... Even when I moved across the country twice. Both times I used my debit card. I didnt even have a credit card come to think about it. I don’t recall ever having this problem…. Even when I moved across the country twice. Both times I used my debit card. I didnt even have a credit card come to think about it.

]]> By: Suzanne http://notmadeofmoney.com/blog/2007/10/why-i-wont-be-using-my-debit-card-to-purchase-gas-anymore.html#comment-51392 Suzanne Thu, 08 Nov 2007 02:49:17 +0000 http://notmadeofmoney.com/blog/2007/10/why-i-wont-be-using-my-debit-card-to-purchase-gas-anymore.html#comment-51392 Another point I should have mentioned is that the AMOUNT of the hold the bank places on an account is what the MERCHANT reports! And why would you think it's OK for a rental car agency or a hotel to place a hold on your account and not a gas station? It costs $75 to fill my car - fortunately I don't have to fill it as often as lots of others do...but I have rented a car for less than $75!! I do need to say that Mr Not Made of Money does have lots of other great tips and ideas and thanks for passing them along!! I just felt like you needed to know your bank is not the bad guy! Another point I should have mentioned is that the AMOUNT of the hold the bank places on an account is what the MERCHANT reports! And why would you think it’s OK for a rental car agency or a hotel to place a hold on your account and not a gas station? It costs $75 to fill my car - fortunately I don’t have to fill it as often as lots of others do…but I have rented a car for less than $75!! I do need to say that Mr Not Made of Money does have lots of other great tips and ideas and thanks for passing them along!! I just felt like you needed to know your bank is not the bad guy!

]]> By: Suzanne http://notmadeofmoney.com/blog/2007/10/why-i-wont-be-using-my-debit-card-to-purchase-gas-anymore.html#comment-51379 Suzanne Thu, 08 Nov 2007 02:20:34 +0000 http://notmadeofmoney.com/blog/2007/10/why-i-wont-be-using-my-debit-card-to-purchase-gas-anymore.html#comment-51379 While a hold may be placed on a debit card transaction in excess of the purchase amount by the merchant, an overdraft fee will only be incurred when actual items POST to the account in an amount in excess of the account BALANCE on that day. I happen to work in a bank and what we see most often from pay at the pump debit card purchases is a $1.00 hold. The only real risk one runs when using a debit card with a low account balance is that an attempt to use the card (later in the day after a hold has been placed for your debit purchase) could be denied if it is going to exceed the account balance. Actually, your credit card is going to work the same way! The hold is just going to be on your available credit limit. Most banks have programs in place depending on the age of your account and the responsible use of the debit or credit account which may override an account balance or credit limit by a small percentage so that responsible cardholders are not usually affected by a hold placed on their accounts. While a hold may be placed on a debit card transaction in excess of the purchase amount by the merchant, an overdraft fee will only be incurred when actual items POST to the account in an amount in excess of the account BALANCE on that day. I happen to work in a bank and what we see most often from pay at the pump debit card purchases is a $1.00 hold. The only real risk one runs when using a debit card with a low account balance is that an attempt to use the card (later in the day after a hold has been placed for your debit purchase) could be denied if it is going to exceed the account balance. Actually, your credit card is going to work the same way! The hold is just going to be on your available credit limit. Most banks have programs in place depending on the age of your account and the responsible use of the debit or credit account which may override an account balance or credit limit by a small percentage so that responsible cardholders are not usually affected by a hold placed on their accounts.

]]> By: Credit Cards http://notmadeofmoney.com/blog/2007/10/why-i-wont-be-using-my-debit-card-to-purchase-gas-anymore.html#comment-50484 Credit Cards Mon, 05 Nov 2007 13:50:10 +0000 http://notmadeofmoney.com/blog/2007/10/why-i-wont-be-using-my-debit-card-to-purchase-gas-anymore.html#comment-50484 I got stuck with the same crap getting gas. I got stuck with the same crap getting gas.

]]> By: SMASH http://notmadeofmoney.com/blog/2007/10/why-i-wont-be-using-my-debit-card-to-purchase-gas-anymore.html#comment-49659 SMASH Fri, 02 Nov 2007 21:04:01 +0000 http://notmadeofmoney.com/blog/2007/10/why-i-wont-be-using-my-debit-card-to-purchase-gas-anymore.html#comment-49659 Whoa! That's a scary story. Thanks for sharing! <a href="http://smashwithyourkids.blogspot.com/" rel="nofollow"><b>SMASH</b> </a> - <b>Save Money and Stay Home</b> <i>with your kids</i> Whoa! That’s a scary story. Thanks for sharing!

SMASH - Save Money and Stay Home with your kids

]]> By: Stefan@USAinDebt http://notmadeofmoney.com/blog/2007/10/why-i-wont-be-using-my-debit-card-to-purchase-gas-anymore.html#comment-49429 Stefan@USAinDebt Fri, 02 Nov 2007 02:49:21 +0000 http://notmadeofmoney.com/blog/2007/10/why-i-wont-be-using-my-debit-card-to-purchase-gas-anymore.html#comment-49429 BP stations usually put a hold for $100 that's why a pay them cash :) BP stations usually put a hold for $100 that’s why a pay them cash :)

]]> By: Julia http://notmadeofmoney.com/blog/2007/10/why-i-wont-be-using-my-debit-card-to-purchase-gas-anymore.html#comment-49375 Julia Thu, 01 Nov 2007 23:36:27 +0000 http://notmadeofmoney.com/blog/2007/10/why-i-wont-be-using-my-debit-card-to-purchase-gas-anymore.html#comment-49375 This is why I never pay at the pump at the gas station. Regardless if you're using a credit card or debit card, they put a hold on a certain amount, in case you pump-n-dash. There have been all sorts of stories in my city of stations not "releasing" the money, so that people have had to call in and complain about it. I always go in to the counter, that way I'm only charged, and I only pay, the correct amount. Lesson learned. This is why I never pay at the pump at the gas station. Regardless if you’re using a credit card or debit card, they put a hold on a certain amount, in case you pump-n-dash. There have been all sorts of stories in my city of stations not “releasing” the money, so that people have had to call in and complain about it. I always go in to the counter, that way I’m only charged, and I only pay, the correct amount. Lesson learned.

]]> By: Deborah http://notmadeofmoney.com/blog/2007/10/why-i-wont-be-using-my-debit-card-to-purchase-gas-anymore.html#comment-49081 Deborah Wed, 31 Oct 2007 21:00:41 +0000 http://notmadeofmoney.com/blog/2007/10/why-i-wont-be-using-my-debit-card-to-purchase-gas-anymore.html#comment-49081 That should have mentioned that after we deposited the credit cards, the charges went to the correct amount. But if we waited several days to do this, it would take longer for the correct charge to show up on an account statement. That should have mentioned that after we deposited the credit cards, the charges went to the correct amount. But if we waited several days to do this, it would take longer for the correct charge to show up on an account statement.

]]> By: Deborah http://notmadeofmoney.com/blog/2007/10/why-i-wont-be-using-my-debit-card-to-purchase-gas-anymore.html#comment-49080 Deborah Wed, 31 Oct 2007 20:59:27 +0000 http://notmadeofmoney.com/blog/2007/10/why-i-wont-be-using-my-debit-card-to-purchase-gas-anymore.html#comment-49080 I worked at a "casual upscale" restaurant for several years, and they did this. They would tell the customers that the credit companies did it, but in reality, the company itself had it worked into it's software to run the charge for 20% more than the bill before tip. The theory was this: we don't know how much you're going to tip, so we want to make sure there's enough in your account to cover both the bill and the gratuity. After we "deposited" the credit card transactions (we did it nightly), it typically took 24 hours for it to get processed. I was the administrative assistant, and I fielded plenty of calls from upset customers. I worked at a “casual upscale” restaurant for several years, and they did this. They would tell the customers that the credit companies did it, but in reality, the company itself had it worked into it’s software to run the charge for 20% more than the bill before tip. The theory was this: we don’t know how much you’re going to tip, so we want to make sure there’s enough in your account to cover both the bill and the gratuity. After we “deposited” the credit card transactions (we did it nightly), it typically took 24 hours for it to get processed. I was the administrative assistant, and I fielded plenty of calls from upset customers.

]]> By: Not Made Of Money http://notmadeofmoney.com/blog/2007/10/why-i-wont-be-using-my-debit-card-to-purchase-gas-anymore.html#comment-49022 Not Made Of Money Wed, 31 Oct 2007 15:09:02 +0000 http://notmadeofmoney.com/blog/2007/10/why-i-wont-be-using-my-debit-card-to-purchase-gas-anymore.html#comment-49022 Scary, Our bank is a credit union. We've had our account there for many years and haven't noticed this type of hold in the past so it might be a new policy. We plan on finding out. I agree that the practice is only being done to increase the likelihood of an overdraft charge and that is just plain wrong. Scary,

Our bank is a credit union. We’ve had our account there for many years and haven’t noticed this type of hold in the past so it might be a new policy. We plan on finding out.

I agree that the practice is only being done to increase the likelihood of an overdraft charge and that is just plain wrong.

]]> By: scary http://notmadeofmoney.com/blog/2007/10/why-i-wont-be-using-my-debit-card-to-purchase-gas-anymore.html#comment-49008 scary Wed, 31 Oct 2007 14:23:23 +0000 http://notmadeofmoney.com/blog/2007/10/why-i-wont-be-using-my-debit-card-to-purchase-gas-anymore.html#comment-49008 This is a result of how your bank handles debit card transactions. One advantage of my credit union is that they never place a 'hold' on my account for using my debit card. They only remove my available funds once the transaction has cleared processing. In the past I banked with chase and their policy was to 'hold' funds exceeding my actual charges, personally I feel like this is theft, however temporary it is. The bank (the institution who is actually holding my funds) has no reason to not make the funds available unless I have authorized these charges. This practice is only followed in order to increase the likelihood of an overdraft charge that increases the banks profits. A credit union however works for the people, and has more customer friendly policies. This is a result of how your bank handles debit card transactions. One advantage of my credit union is that they never place a ‘hold’ on my account for using my debit card. They only remove my available funds once the transaction has cleared processing. In the past I banked with chase and their policy was to ‘hold’ funds exceeding my actual charges, personally I feel like this is theft, however temporary it is. The bank (the institution who is actually holding my funds) has no reason to not make the funds available unless I have authorized these charges. This practice is only followed in order to increase the likelihood of an overdraft charge that increases the banks profits. A credit union however works for the people, and has more customer friendly policies.

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