dont pay at the pump

[alocispepraluger102]

http://www.dailyhome.com/news/2008/dh-loca...d-8f26v3443.htm

'Pre-pay fee' adds to shock at gas pump

By Chris Norwood

06-27-2008

Everyone is currently feeling the pain at the pump, and there is not really anything anyone can do about it. But you can avoid some additional pain by paying inside and using your Personal Identification Number (PIN) rather than paying at the pump.

According to First National Bank Vice President Chad Jones, gas stations and several other businesses have traditionally included a $1 “preprocessing” fee that is taken off the transaction once the credit card company submits the final paperwork to the bank. But as the price of gas has skyrocketed, credit card companies have determined that $1 is no longer sufficient, and upped the preprocessing fee to as much as $75.

“Suppose you have $200 in your account,” Jones explained. “Then you go and buy $100 worth of gas by paying at the pump. There will be a $75 preauthorization fee that will be added on. Now that fee will come off after 24 to 72 hours, but if you go out after you buy your gas and get $50 worth of groceries, your card is either going to be declined or you’re going to get hit with overdraft fees.”

The fees are deemed necessary by the credit card companies because they have no way of knowing, once a card is authorized, how much the final transaction will be, let alone whether there will be enough money in the account to cover the purchase.

Fees don’t come off immediately because the storeowner first sends each batch of receipts from the store to whichever credit card company, which then send them to the banks, which take off the authorization fee.

Thus, the way to avoid this particularly hazardous temporary charge (without having to resort to paying cash) is to pay inside, after you have finished pumping. Since the amount of the transaction is already known, the authorization fee is not necessary.

The same rules, Jones added, apply to those using credit cards. “So watch out if you’re getting close to your credit limit, too,” he said.

“This isn’t something the banks are doing, and it’s definitely not something the gas stations are doing. This is coming down from the credit card companies. And if gas prices rise again, which the probably will, the fee is going to go up to.”

[Jim Alfredson]

Thus, the way to avoid this particularly hazardous temporary charge (without having to resort to paying cash) is to pay inside, after you have finished pumping. Since the amount of the transaction is already known, the authorization fee is not necessary.

Except that almost every gas station now is pre-pay only. So basically we're screwed.

[Shawn]

When I drove from Virginia to Austin awhile back I handled it this way:

1. Went into the store, handed them around $50

2. Had them turn the pump on and filled it up.

3. Then walked back in to get my change.

Cash only transaction, no credit card fees. So I had to walk back into the store...at least it was a little exercise.

[Dan Gould]

Thus, the way to avoid this particularly hazardous temporary charge (without having to resort to paying cash) is to pay inside, after you have finished pumping. Since the amount of the transaction is already known, the authorization fee is not necessary.

Except that almost every gas station now is pre-pay only. So basically we're screwed.

Go in, give them a dollar figure to charge. That's a specific amount - no fee (I think its technically called a "hold"). Most people have a good idea how many gallons/how much money it will take to fill up, or increasingly people are putting in a fixed amount whenever they have to fill up. Either way, they can't charge a fee if you tell them how much you are buying.

[clifford_thornton]

Yeah, the shit is fucked but w/o cash on hand, Gould's idea makes sense.

[sidewinder]

Go in, give them a dollar figure to charge.

That's the way I've always done it buying gas in the States in places like NYC or Florida - paid my $20 or $30 fill-up amount up front (that dates it) - didn't think there was any alternative. Always came as a bit of a shock coming in either from Canada or the UK where you paid after filling up and then to see those pay booths in the US that often had metal bars on the windows.

Edited June 29, 2008 by sidewinder

[Alec]

This is the third time I've heard about this charge, and the hold charge hotels use, but I've never ONCE met anyone who has been affected by this.

Could it happen? I guess. I've just never seen it in real life. (just like I've never met anybody who's had their identity "stolen.") Sure, someone years ago tried to use my credit card in Vegas, but they couldn't and I wasn't out a cent.

Hmmm...perhaps nobody wants my identity!

[tkeith]

The default for many places locally has always been $50 for this charge. It also seems to affect the debit card more than the credit card (my own experience), so I've always chosen credit when paying at the pump, even when using my debit card. However, now that $50 is about 1/2 tank of fuel, what's happened around here is that the pumps will cut off at $50. As a result, many stations are requiring transactions above that amount to be executed inside. Thank you big oil... raping us at the pump isn't enough, you had to get your cousins at the credit card companies to pork us for convenience. Ah, the capitalist dream (when influenced by way too much government involvement). Look on the bright side: 205 more days... (plus however long it takes to get Congress off its collective ass).

[Jazzmoose]

Fees don’t come off immediately because the storeowner first sends each batch of receipts from the store to whichever credit card company, which then send them to the banks, which take off the authorization fee.

This is utter bullshit. If you have your credit card accounts with online access like I do, check them when you get home. I guarantee they already know how much the total is.

[Big Al]

Fees don’t come off immediately because the storeowner first sends each batch of receipts from the store to whichever credit card company, which then send them to the banks, which take off the authorization fee.

This is utter bullshit. If you have your credit card accounts with online access like I do, check them when you get home. I guarantee they already know how much the total is.

Sure they do, but that doesn't stop them from applying that authorization fee anyway. It works in their favor to do this, which causes the overdraft charges, the overlimit fees, etc.

[ejp626]

Living in Chicago, it has been ages since I've seen anyplace where you could fill up before paying. I was out in the suburbs a few months ago (I guess I go every couple of years ;-) ) and saw a few places you could do this. I bet they are all converting over now.

By the way, I agree about the fees etc., so I usually pay cash. However, it could be worse. In the UK, it is the consumer who pays through the nose to call up a bank, credit card company, store etc. and make a complaint. Some of the time these are free numbers, but an awful lot of the time it is a paid call and it can easily rack up to 20 or more pounds, if for instance you are calling a computer help desk. I was absolutely shocked when I realized this.