Gas Stations & Credit Cards - Is this true?

[LisaR]

Yesterday: my car, my credit card, gas station #1 - Ran the card at the pump and it said it didn't process and I needed to see the attendant inside. Not sure why it didn't work, but now that I was inside I had to tell him the dollar amount of gas I wanted. Kind of inconvenient since I didn't know the exact amount I'd need. He tells me I can charge any amount I want (he suggested $70 ), sign for that amount, but if I pump less it will only really charge me for that amount. I thought to myself, "do I look like I was born yesterday? I don't think so." I charged $35 and put in $35.

Today: mom's car, mom's credit card, totally different gas station. Exact same thing happened. Went inside and was given the same story. Again, charged $35 and put in $35.

So now I'm wondering if this is really true or if there is some kind of scam taking place? In both cases, I signed the slip saying the credit card approved $35. If I would have signed for $70 and only put in $35, what proof would I have?

 

[sam_gordon]

Yesterday: my car, my credit card, gas station #1 - Ran the card at the pump and it said it didn't process and I needed to see the attendant inside. Not sure why it didn't work, but now that I was inside I had to tell him the dollar amount of gas I wanted. Kind of inconvenient since I didn't know the exact amount I'd need. He tells me I can charge any amount I want (he suggested $70 ), sign for that amount, but if I pump less it will only really charge me for that amount. I thought to myself, "do I look like I was born yesterday? I don't think so." I charged $35 and put in $35.

Today: mom's car, mom's credit card, totally different gas station. Exact same thing happened. Went inside and was given the same story. Again, charged $35 and put in $35.

So now I'm wondering if this is really true or if there is some kind of scam taking place? In both cases, I signed the slip saying the credit card approved $35. If I would have signed for $70 and only put in $35, what proof would I have?

I have had this happen to me before. If I sign for $70 and only put in $35, after I pump, I go back in and ask for the "refund", and get a copy of the receipt.

 

[LisaR]

I have had this happen to me before. If I sign for $70 and only put in $35, after I pump, I go back in and ask for the "refund", and get a copy of the receipt.

Yeah, both guys specifically noted that I did not need to come in as it would automatically only charge the amount pumped. Seemed so fishy to me, but odd that it happened at two different places.

 

[Cannot_Wait_4Disney]

Yeah, both guys specifically noted that I did not need to come in as it would automatically only charge the amount pumped. Seemed so fishy to me, but odd that it happened at two different places.

I would say that things are likely set up there so that it will automatically only charge the amount pumped just like they said. But I'm not going to be relying on their word or that their equipment is functioning properly on that. I'm going to be paying for, and then pumping an amount that won't quite fill it nonetheless simply because I don't want to have to go back in and correct and verify the receipt. I charged X, have a receipt for X, and pumped X, and away I go.

 

[usnuzuloose]

I have worked in gas station for many years, most of the time you give your credit card to the attendant and they turn on the pump for you. You pump what you want return and run the card.

 

[Albort]

Some gas stations will put a charge of like $140 first, and then refund you the difference the same day...

my guess is that maybe you dont have enough credit? or perhaps ur credit card company refuses to do so.

Or maybe the credit card gets flagged and is forced to show ID?

 

[Fire14]

I know when I've charged stuff inside it charges whatever amount I "sign" for and it's showing online instantly. If I pay at pump it charges card 1.00 and than a day or 2 later correct amount shows up.

 

[msjprincess]

Yep. The receipt will show how much you actually pumped.

DH just did it the other day. We were out and he had to fill up his motorcycle. He authorized $20 because he wasn't sure how much it would take. But it was full at $8.35. The receipt says $8.35 and that's all he was charged.

 

[bcla]

It's sounds more like an authorization hold - aka "authorization and settlement". It's done because one might go over a credit limit. They won't authorize more than your credit limit headroom. Most places (gas stations/hotels) won't actually charge you, but it puts a hold for that amount against your credit limit that can only be charged to that merchant until it gets released when the actual charge amount is settled. The hold can sometimes take a few days to be released. A gas purchase is different than buying stuff. You total $57.84 at Target, and the processor can check that against your remaining credit limit easily. But a gas station attendant doesn't know how much gas you're going to pump. Occasionally I've had double holds where one wasn't cleared and it took a few days to expire.

http://en.wikipedia.org/wiki/Authorization_hold

Pay at the pump has its own limits too. Often it's spelled out on the pump.

http://abcnews.go.com/Business/story?id=4962033

I'm also old enough to remember when gas stations would actually allow a customer to pump first and pay later. I also remember attendants who would swipe credit cards at a platform using carbon forms and an imprinter. One of my credit cards doesn't even have a raised set of numbers to use with an imprinter.

 

[LisaR]

I guess the thing that was so strange to me was that it has never happened to me before (always pay at the pump) and now it happens two days in a row at different stations with different cards. Both are gas stations I frequent. Oh well. Hopefully it won't happen again and it was just a glitch. The whole point of paying at the pump is to save time instead of going inside and waiting in line.

 

[Gumbo4x4]

I've had that in CA (everywhere) and TX (San Antonio), but nowhere else.

Clerk: How much do you want to pump into the car?
Me: As much as it will hold.
Clerk: How much is that?
Me: Damned if I know.

 

[WhateverLolaWants]

There was a gas station near my old job that would say see attendant when I swiped my card. I thought it was just a fluke and would just drive to another gas station, lol. That's an annoying concept. I use a credit card so I don't have to walk inside.

 

[bcla]

On a related topic, has anyone actually a credit card with an integrated smart card? They're supposed to be more secure than magnetic strips, which are extremely simple. The smart card system has encoding circuitry. Even if the transmission can be monitored by someone unauthorized, there's not much that a would-be thief could do with the information. In a way, I wish this would be used more often because of card skimmers on magnetic readers.

I recently traveled overseas. Not that many places too Visa/MC/AMEX. However, those that did saw the smart card contact on my card and used it instead of the strip.

I'm not 100% sure, but I think the smart card sends out the same initial code every time, the processor sends a different number, and the smart card sends back an encrypted response that essentially tells the processor the card number and that it's the real card. It should be extremely difficult for anything intercepting the information to make anything out of it.

Apparently the main standard is "EMV" - from a consortium started by EuroPay, MasterCard, and Visa. They go through a more complex authorization scheme than just reading a card number on a magnetic strip.

http://en.wikipedia.org/wiki/EMV

 

[tvguy]

I guess it's a risk you have to take. I understand them wanting to make sure you have enough available credit so they don't get ripped off, but I guess there is the potential of them ripping you off.
I had an ARCO Credit Card until they switched to all cash, and I had a Mobil card and they closed all their gas stations in Northern California, so I've paid cash for gas for probably 25 years. Saves me $4 a week with the lower prices, and $200+ will buy me 10 really nice bottles of wine.

 

[bcla]

I guess it's a risk you have to take. I understand them wanting to make sure you have enough available credit so they don't get ripped off, but I guess there is the potential of them ripping you off.
I had an ARCO Credit Card until they switched to all cash, and I had a Mobil card and they closed all their gas stations in Northern California, so I've paid cash for gas for probably 25 years. Saves me $4 a week with the lower prices, and $200+ will buy me 10 really nice bottles of wine.

A lot of brand names have gone away in most of Northern California, including BP, Texaco, Exxon, and Mobil. It doesn't really mean all that much in terms of the fuel. It costs money to transport fuel and it's for the most part a fungible commodity. It probably comes from the closest fuel depot, and to save money they pipe it/truck it from the most convenient refinery that can deliver it. I live near the Chevron refinery in Richmond, CA. Likely most of the gas stations in my area get fuel from the fuel depot next door, unless there are issues with supply, such as after one of their fires. A particular brand may have its own specific detergent additive mixed at the fuel depot, but the "base fuel" is often identical at gas stations throughout a particular area.

I do remember when Texaco stations mostly went away in the Bay Area. There were a few holdouts, like a prominent one just off of I-880 in Oakland and the campus gas station at Stanford University. Those were really odd. However, it was after the Chevron-Texaco merger, so some people did think that maybe they were supplied with Chevron fuel.

I distinctly remember a few Mobil gas stations on the California side of Lake Tahoe long after Mobil stations were rebranded around the Bay Area. Not sure if you'd consider that "Northern California" though.

I get most of my gas from Costco these days. It not only has some of the best prices, but they now guarantee that all their gas stations include a high detergent level that meets the Top Tier Gasoline standard.

 

[LisaR]

I guess it's a risk you have to take. I understand them wanting to make sure you have enough available credit so they don't get ripped off, but I guess there is the potential of them ripping you off.
I had an ARCO Credit Card until they switched to all cash, and I had a Mobil card and they closed all their gas stations in Northern California, so I've paid cash for gas for probably 25 years. Saves me $4 a week with the lower prices, and $200+ will buy me 10 really nice bottles of wine.

Our prices are the same, cash or credit.

 

[bcla]

Our prices are the same, cash or credit.

It all depends now. I'm seeing an increasing number of gas stations here in the San Francisco Bay Area with separate prices for cash vs credit/debit. However, many offer cash prices if you use their specific credit card. We see a lot of signs like this one:

Costco only accepts AMEX, debit cards, and Costco gift cards (you don't need an active membership card to get gas if you've got that). ARCO for years has accepted only cash or debit. However, some people get tripped by their debit fee that's maybe 40 cents per transaction. I've also seen some supermarket gas stations that have a cash/debit vs credit price. I think it's because they get special deals on debit card fees.

ARCO (Atlantic Richfield) used to be more prominent around the country, and was recently sold by BP to Tesoro. I think they only exist as a brand in the western US these days. They were famous for "blowing up" their credit cards [in a commercial] and shifting to a cash only (later cash and debit) model with lower prices. I do remember a specific franchise location that did accept credit cards for a few years, but that was the owner's decision.

 

[bcla]

Again, I doubt the gas stations actually charged you, but rather put a hold against your available credit limit. They usually don't take out money, but they freeze that amount from your available credit limit until the transaction is completed. This is done at gas stations because they don't know how much gas you're going to pump. At a hotel they don't know if maybe you'll charge incidentals like meals or phone calls to the room, and want to make sure you don't exceed your credit limit. Sometimes that takes a few days to clear once the transaction is complete, especially if you're doing it on a weekend. And if you pay at the pump, you're probably going through this automatically. A lot of pumps have stickers that disclose this, but most people don't pay attention to them.

The biggest issue is that often people are rubbing up against their credit limit and suddenly find that their cards have been declined. Or there's a hold for five days against a debit card, and suddenly a check bounced for that account because the hold has frozen some funds such that there isn't enough available to cover the check.

Here's some explanations:

http://daviswiki.org/authorization_hold

So you think you've been overcharged... you just got home, looked at your account online, and that that darn restaurant or gas station or rental company has "taken money" from your account that is over and above what the bill was, even including tip! Screw 'em... time to fire up the trust Davis Wiki and chew them out about it...

Wait a second... you might want to learn a bit about how banking works first...

You see, there are different kinds of charges to accounts, and usually your online banking service doesn't show you the difference between a normal charge (the kind that actually takes money out), and an authorization hold, which (and this is the really important part) does not actually take money out of your account. Yes, it is showing up on your bank statement right now, and yes, they did do a transaction in excess... but that is because they didn't know how much to charge you. The "extra" charge will disappear in a day or two. Really. That's how it is supposed to work.

http://www.10news.com/news/are-gas-stations-holding-your-money-hostage-

Lewis purchased $20 of gas, but his bank account showed another $50 tacked on. The total amount of his cash tied up is $70 and Lewis wants an explanation.

"I called my bank and said there must be a mistake, I've got an extra charge on my account," said Lewis.

But Temecula Valley Bank tells him there is no mistake. The charge is called a pre-authorization hold.

"The operations officer said that's just the hold they put on the transaction when you make the purchase," said Lewis.

As soon as you swipe your card at the gas pump, the extra money is charged to your credit or debit card. In some cases, the extra money is released when you finish pumping the gas. In other cases, the additional money is held. It depends on the gas station and the consumer's bank.

Another consumer, Kathy, tells the 10News I-Team about a pre-authorization hold she said received at an ARCO station on Sports Arena Boulevard. She said her card had a $100 hold, lasting two days on her account.

http://blog.oregonlive.com/complaintdesk/2011/07/getting_held_up_at_the_gas_pum.html

Barbara Fankhauser rolled into her local Chevron station one Friday last month and filled the tank of her Toyota Echo with $30 worth of gas.

But unlike most of her fill-ups, the Southwest Portland woman happened to glance at her credit card account online the next day. There, next to the charge for $30 from Chevron was another from the station for $100.

"'Yipes,' I thought, there was a dishonest clerk at the gas station," Fankhauser said. "They've run my card twice."

Yes, but only temporarily.

Called a pre-authorization hold, the charge isn't a charge at all, or a fee, but an insurance policy of sorts that banks, gas stations or credit cards take out on certain transactions. Mostly, such holds are used on transactions that begin before anyone knows what the total charge will be. That can happen at restaurants, say, where you may have a total but then tack on extra for a tip, or at hotels, when charges are added for phone calls or that little bottle grabbed from the minibar.

** **

The second type of hold can be initiated by the gas station, which is then supposed to alert the bank within hours of what the actual amount was so that it can be processed and the hold dropped, Steinberg said. That alert doesn't always happen so quickly.

Typically, she said, the credit card guidelines allow holds for as many as three days, but of course it varies. Same's true of limits on how much money can be put on hold, though it seems to currently range from $75 to $125 -- amounts that have increased with the price of gas.

 

[MIGrandma]

Was it an AGO gas station?

DH had a favorite station near us, when it was BP, as they were typically 10-15 cents cheaper than anywhere else. Now they've changed and it's an AGO station. We stopped the other day and he had to go inside and see the attendant, and he was told the same thing the OP was. He said "no thanks" and would take his business elsewhere, and we did. The AGO station is the only station that does that, hopefully the others don't follow suit. We prefer to "pay at the pump" and it's very annoying when you have to go inside to talk to the attendant.

 

[NoSoup4U]

Yesterday: my car, my credit card, gas station #1 - Ran the card at the pump and it said it didn't process and I needed to see the attendant inside. Not sure why it didn't work, but now that I was inside I had to tell him the dollar amount of gas I wanted. Kind of inconvenient since I didn't know the exact amount I'd need. He tells me I can charge any amount I want (he suggested $70 ), sign for that amount, but if I pump less it will only really charge me for that amount. I thought to myself, "do I look like I was born yesterday? I don't think so." I charged $35 and put in $35.

Today: mom's car, mom's credit card, totally different gas station. Exact same thing happened. Went inside and was given the same story. Again, charged $35 and put in $35.

So now I'm wondering if this is really true or if there is some kind of scam taking place? In both cases, I signed the slip saying the credit card approved $35. If I would have signed for $70 and only put in $35, what proof would I have?

This is not a scam. Its been going on for quite some time. All depends on which gas station you go to. i've experienced this in several states in the US. A couple of times I had to give them cash, once about $80, when i was done filling up, the cashier would give me the balance and a receipt. Simple. I've done the same with a credit card and only the amount i filled up would be charged to the card, just as they said.