Gasoline buyers say 'hold on' here
Drivers question the fairness and legality of $75
account holds when using debit cards at self-serve pumps.
When customers use a debit card to pay at the pump, some gas companies and banks put a financial hold on their bank accounts for as much as $75 even though the purchase may have been for much less. The hold is released when the transaction clears, which usually takes only a day or two, but can take up to three business days. During that time, customers are denied access to their money.
Heather Leinen said she ended up with a $75 hold on her checking account after buying $25 worth of gas at a Hess station on Hillsborough Avenue in Tampa. The big problem: She only had $72 in her account. She said AmSouth Bank charged her a $32 fee for insufficient funds and said "there is nothing they can do to help."
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Others told tales of not having enough money to buy groceries over the Labor Day weekend. Several questioned the legality of the practice.
"The purchase price is on the receipt and that is what I agreed to pay/hold against my account," said Debbie Simpson. "No more, no less."
All but one of the complaints the Times received involved Hess purchases. Hess blamed the banks, noting they decide to place the hold.
The rotating blame game goes on and on. Whatever. The policy still sucks and, as usual, poor folks get screwed over the most.
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When a customer swipes a debit card at the pump, the gas company asks the bank to authorize the transaction and transmits an estimated amount. The most common authorization request is $1, said Chris Roberts, debit products manager for Wachovia Bank. It's a way for the gas company to be sure the customer has a valid account.
However, as gas prices have risen, some companies have been asking banks for larger and larger authorizations. Hess now asks for $75, which takes all the risk out of the transaction for the gas company.
Thanks to Kate Stone
Posted: Mon - September 12, 2005 at 09:12 AM