Posted on 08/31/2013 6:21:15 PM PDT by Maine Mariner
I am getting ready to write a letter to the Attorney General of Maine asking his office to investigate how companies put hold on debit/credit cards.
During a recent trip we used a prepaid AAA debit card; we purchased gasoline for $29.00 and paid at the pump. After our purchase we checked our statement and the company put a hold of $75.00 on the card. We have a receipt for $29.00. A couple of days later the $75.00 dropped off and our card was debited for the actual amount of the purchase. I understand a company can put a hold on a card, but the story gets worse, much worse.
On August 28, my wife went to purchase gasoline using that same AAA card and swiped the card at the pump. She saw that it was to be a credit purchase and not wanting a $75.00 hold CANCELLED THE TRANSACTION. She purchased no gasoline with that AAA debit card. Well, you guessed it-a mere swipe of the card automatically has put a $75.00 hold on our card. As of 8 pm on August 31 the hold is still there. Here is my question to anyone that can help. What right does a company have to put a hold on my money when NO purchase was made?
I understand putting a hold on a credit card (not a debit card) when you rent a room or a car, but for a retail purchase? Doesn’t make sense to me.
Pay in cash. Convenience has its penalties.
Use of the card constitutes agreement to the terms. They put the $75 hold on to cover the potential cost of the gas. Only way around it is to go inside and have them put a specific amount against the card.
Pssssttt,
Get rid of ALL the friggin cards and pay CASH.
CASH IS KING.
I have NO checking, saving, credit card or other accounts.
You need to see how these vermin slobber after me for my business.
If you think the holds are something, you need to understand how they up and down the interest rates on your accounts.
Creepy. I’d stop using that prepaid card and get a bank one, even from a sucky bank (which most are). At least they don’t do that.
It’s not the card company its the place you got gas from, they are the ones putting the hold.
I use a debit card regularly. A lot of times they will put a one dollar hold/charge on it before the whole amount is applied several days later.
I have never had a charge larger than the actual amount of the debit placed on it.
By the way, jumping onto the thread: what about when you leave a debit card as your card at a hotel? They put a hold on your card that lasts longer than your stay. How to avoid that? Would leaving cash be better, because they have to give you back your cash when you leave?
the gas station does that because it has no way of knowing in advance, when it authorizes your purchase, how much gas you are going to pump into your car
so it actually makes sense
they then only actually bill your credit card for the amount you do in fact pump.
if you don’t want that hold to show on your account, you can go inside and have the attendant charge your card for a specified amount in advance (or most gas stations will agree to hold your card inside while you go and fill you tank, then you go back in and sign and pick up your card).
so you do have a way around this problem.
Barrack Obama thanks you for the $75 donation.
All cards do it. You just won’t notice it unless you monitor it closely.
I agree with your observation. However, there was no purchase. Immediately after my wife swiped the card she cancelled the transaction. No purchase was made.
And yes we now know to go inside and have a specific amount put against the card.
Yes, we understand that.
If you have ever been to a station where the hold is too low then you have to do multiple transactions if you have a vehicle with a large tank. That's a pain too.
There's an overview of the whole process and problems at http://en.wikipedia.org/wiki/Authorization_hold
It’s common. The places I buy gas have stickers on the pump indicating that a hold may be placed on your card. They indicate it is the bank and not them...it makes a little sense. In a sense it’s an odd debit purchase because you’re authorized before the amount of sale is known, which defies the concept of a debit purchase. USAA does not seem to do it.
If you have no cards, how do you travel? How do you reserve a hotel room or rent a car?
By the way, jumping onto the thread: what about when you leave a debit card as your card at a hotel? They put a hold on your card that lasts longer than your stay. How to avoid that? Would leaving cash be better, because they have to give you back your cash when you leave?
You likely will NOT use anything that will cost but every hotel requires an open card or cash toward “incidentals”.
I used to run a hotel & for the last 10 years I’ve stayed in a new hotel every night for work. So I’ve experienced a lot at hotels. This is the best way I know of.
Without human intervention, analytical software flags certain transactions as suspect and may impose rejections, delays, holds, and such as a result. The lengthy cardholder agreements and various laws and regulations permit the practice, as annoying as it can be.
I understand that it is common. But again no purchase occurred. The card was swiped; the transaction cancelled. No gas was pumped; nozzle was not removed from the pump.
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