If they hold $100 for 3 days does that mean they draw interest on your money? Think how many people they do that too that could really add up to some change.
Smiley right there I think is what it is totally! I've thought that for a long time. Cause there is no other advantage to doing that. I think it's all about the "interest" they are collecting on it with out a doubt!
Alee
True Blue Farmgirl
22941 Posts
Alee
Worland
Wy
USA
22941 Posts
Posted - May 08 2011 : 10:03:28 PM
Smiley- Technically the money hasn't left the bank account so you still get the same amount of interest paid by your bank and the gas stations do not earn the interest. I work for a bank so I see these charges all the time. Basically what happens is the as soon as you swipe your card, the company "tests" your bank account for a preset amount. It can be as little as a dollar or as mucha s $125. This is completely up to the merchant and or the card service agreement that the merchant has with Visa or Mastercard. On the bank's end- they only know that the account has been "tested" or "authorized" for a certain amount. Because debit cards are guarenteed funds, the bank puts a temporary hold on those funds (that by federal regulation must expire in 3 business days) or until a matching debit comes through- whichever is first. Ideally- the merchant should be processing the payment immediatly though a continous batch process. However this is slightly more expensive for them so many merchants hold onto their batches until they have reached a large amount to process all at once to save on processing fees.
So basically it all boils down to until that money is actually fully requested by the merchant- the bank only can operate on that intial "test" run that the merchant pinged the account for. If I notice a gas station putting large holds on my funds- I boycott the station. I only gas up at locations that either continous batch so all I see on my card is the actual purchase- or the ones that only test for one dollar. I think the best way to let service stations know that this is unacceptable is to let the manager know and then not give them any more business. It a decision that is made per merchant- so if it is a large chain they might be able to control it at a local level- but usually there are many card service options available that don't require the huge holds.
Thanks, Alee. I am still a little confused as to why they do it. But this has helped alot. I think I will just ask at the stations I go to the most and see what their policy is. And it may be that deibt is better over the credit or the other way around. I will see next time.
And if I get gas once a week at $75. each time, I am spending $300. a month. Wow. I need a smaller car. Or a horse. My DD went to Atlanta yesterday and she said gas is $4.09 there. When I filled up the other day it was $3.68. So it's coming. And then it will be over $80. to fill up. I told her I'll need to find a job just to buy gas but then I couldn't afford to work for paying for gas. I will just stay home more. (I do "work", if taking care of a wonderful lady a few days a week is work. But she's 20 miles a way.)
I have always done the credit key. Always. Never the debit because then I have to remember the number. So I have always done credit.
I had to go all the way to Chickamauga today to hunt no ethinol gas for my mower and a friend's tiller I am going to borrow. And it was $3.77 a gallon. I went inside and told them I had gas cans to fill up. Then went back in to pay. I asked if they do this and she said no. She had never heard of it either. So I guess it is only certain gas stations. It's still not right for them to have control over my account.
I Am SO Upset (And Mad, too)
Posted - May 08 2011 : 8:23:39 PM
