Gas Stations Can Now Place a $175 Bank Hold - Kelley Blue Book (2024)

FAQs

Why are gas stations charging $175? ›

These hold fees do disappear anywhere from a few hours up to two days, but if you are using a debit card and don't have the extra money on your account you could face more overdraft fees. $125.00 used to be the maximum hold charge but due to rising gas prices, Visa and MasterCard raised it to $175.

Gas stations can take between 2 hours and 3 days to charge your credit or debit card when you pay at the pump. The gas station may place a temporary hold on your card for up to $175 until the final purchase amount is charged to your account.

When you swipe a credit card at a gas pump, QT sends a preauthorization of up to $175, depending on the card brand, to the bank to ensure that there are sufficient funds in your account.

The $50 hold will remain until the transaction clears, which can take 48-72 hours. In these transactions, gas stations determine the amount of the hold and card issuers determine its length. Gas stations, however, do not keep the difference between the hold amount and the amount purchased.

Pumping gas could lead to a $175 hold to be placed on your card before you even fill up. As gas prices rise, the hold on customers' cards at the pump increased from $125 to $175. Having a higher price hold increases the risk of overdraft fees for some consumers.

How long does it take for a temporary hold to be removed? The bank will remove the hold based on their policies and procedures once the order is complete. Depending on the bank, it can take up to 10 days after the order is complete to remove the hold. Only the bank can remove a temporary hold.

If you don't have enough funds in your account, the transaction will be declined. When you choose to run your debit card as credit, you sign your name for the transaction instead of entering your PIN. The transaction goes through Visa's payment network and a hold is placed on the funds in your account.

The merchant determines the amount of the hold. Typically the hold stays on your account until the funds are transferred to the merchant from your financial institution, often 3-4 days. If you look at your account online it may show as a pending transaction.

The financial institution that issues the customer's card requires a credit check for authorization ("hold") be made prior to purchase. Once the purchase is complete, the hold amount should be cancelled out with the correct amount.

Pre-authorization charges are a common practice when a vendor (a gas station, a hotel, or a rental car agency) doesn't know exactly how much of their service you're going to pay for. The hold ensures that the vendor will get appropriately paid after you're done, but this can put consumers in a tough spot.

Can I get gas with no money on my debit card? ›

If the debit card is attached to an account that does not have sufficient funds, and if there is no overdraft protection on the card, the transaction will simply be declined and the gas pump will not release any gas.

If you have zero balance in your bank that's linked to your debit card, and that you've opted in for overdraft option, you may pay for gas or anything else. However, do expect an overdraft fee when you do that.

You can ask your bank to provide an explanation for the hold or sometimes even to release the hold. In most cases, you won't be able to do anything about the hold though, and because all banks have them, you can't switch banks to avoid them either.

Some businesses (like gas stations and hotels) will place a temporary charge on your payment card. Since pumping gas is an open-end purchase, gas stations will typically pre-authorize your payment card for a larger amount to ensure that your card has enough funds to cover the amount of gas you'll leave with.

Gas stations put a hold on the card to make sure you have the money to cover what you bought. Sometimes it takes a while to process, so they hold an amount they know is more then what you owe. (It's a hold, so you're not actually paying more.).

Pre-authorization charges are a common practice when a vendor (a gas station, a hotel, or a rental car agency) doesn't know exactly how much of their service you're going to pay for. The hold ensures that the vendor will get appropriately paid after you're done, but this can put consumers in a tough spot.