Buying Gas With a Debit Card
Just a quick word of warning to those of you that like to buy gas with your debit card... Most gas stations place a sizable hold on your funds whenever you swipe your card at the pump.
The amount of frozen funds varies from station to station, but can be as great as $75-$100 no matter how small your purchase ends up being. Unfortunately, these funds aren't always released at the conclusion of the transaction. Rather, many stations don't relinquish their hold on your money for several days. Obviously, if you tend to carry a low balance in your bank account, this sort of a policy can dramatically increase the likelihood that you'll overdraw your account. While this might end up being good news for fee-crazy banks, it's definitely bad for your pocketbook. The easiest way to avoid this problem is, of course, to pay with cash or a credit card.
Update: It seems that Sunoco has changed their practice with regard to debit card authorizations.
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"Buying Gas With a Debit Card" was first published at fivecentnickel.com
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What a ripoff! I'd read this other places before, so I began buying gas with credit cards only. If you consider the cashback rebates that you can get from some credit cards (especially Citi's Driver's Edge), some of which include mileage rebates, there's no reason to use debit cards for much of anything.
I also worry about how my debit card, if it fell into the wrong hands, could be used to drain my bank account. That, to me, is even more worrisome than a $100 hold.
Debit card loss/theft is no laughing matter. Ensure your bank/credit union has a policy against such losses to ultimately protect you. Although you may experience some short term pain.
Had my credit cards and debit card lifted from my wallet at a gym. They went tv shopping, and filled up an SUV at a gas pump.
Eventually I returned to normal. But all the banks involved were big banks. Kudos to Discover for noticing the fraud and stopping it, as well as calling me.
using a debit card anywhere but at the bank or atm is not in the consumer's favor.
1) They do not provide overdraft protection... as I have seen twice
2) Liability if someone jacks the account can be upwards of $500, where as credit cards can be around $25... also another lesson I learned
3) If someone does mess with account, YOUR checking balance could be zeroed out until the bank resolves the issue. False credit card charges can be disputed without affecting cash flow.
I'm sure there are a few more reasons
