cancel
Showing results for 
Search instead for 
Did you mean: 

Gas station holds - how they differ

seattletravels
Valued Contributor

Re: Gas station holds - how they differ


@ReturnOfTheCredi wrote:

@seattletravels wrote:

Right. Your bank knows if you have funds available, why would they place the hold? The gas station does it to ensure the card is active and there is funds available.


So does the gas station distrust AMEX?  Why am o having this issue with the Propel, but nothing else?  At the same stations?


Who knows? Maybe they want to discourage you from using Amex because the swipe fee is higher. 



Last App: BECU 02-26-2020
Pronouns: He/Him/His
Message 41 of 48
Brian_Earl_Spilner
Community Leader
Mega Contributor

Re: Gas station holds - how they differ


@seattletravels wrote:

Right. Your bank knows if you have funds available, why would they place the hold? The gas station does it to ensure the card is active and there is funds available.


Because the gas station doesn't know if I have $2 in my account or $1000. The hold isn't placed by the bank, it's placed by the station. How long it's held is determined by the bank. Makes no sense that a bank won't place a hold because they know what's in my checking account but a credit card will hold $100 of a $5000 limit. You have available limit, why would it matter. I can have $2 in my checking account and it'll let me pump $100 because it was only a $1 pre-authorization.




Message 42 of 48
ReturnOfTheCredi
New Contributor

Re: Gas station holds - how they differ


@seattletravels wrote:

@ReturnOfTheCredi wrote:

@seattletravels wrote:

Right. Your bank knows if you have funds available, why would they place the hold? The gas station does it to ensure the card is active and there is funds available.


So does the gas station distrust AMEX?  Why am o having this issue with the Propel, but nothing else?  At the same stations?


Who knows? Maybe they want to discourage you from using Amex because the swipe fee is higher. 


That's a reasonable thought.  Odd that other AMEX card users are saying it doesn't happen to them, but of course, it's the gas stations that we're using making the call it seems.

Message 43 of 48
seattletravels
Valued Contributor

Re: Gas station holds - how they differ


@Brian_Earl_Spilner wrote:

@seattletravels wrote:

Right. Your bank knows if you have funds available, why would they place the hold? The gas station does it to ensure the card is active and there is funds available.


Because the gas station doesn't know if I have $2 in my account or $1000. The hold isn't placed by the bank, it's placed by the station. How long it's held is determined by the bank. Makes no sense that a bank won't place a hold because they know what's in my checking account but a credit card will hold $100 of a $5000 limit. You have available limit, why would it matter. I can have $2 in my checking account and it'll let me pump $100 because it was only a $1 pre-authorization.


Right. That's what I'm saying.  When gas stations started doing the preauth holds many years ago they were doing it on both debit and credit cards. If I remember correctly, there was law passed in the early 00s that restricts the hold on debit cards.



Last App: BECU 02-26-2020
Pronouns: He/Him/His
Message 44 of 48
CardNut
Valued Contributor

Re: Gas station holds - how they differ


@ReturnOfTheCredi wrote:

@seattletravels wrote:

@ReturnOfTheCredi wrote:

@seattletravels wrote:

Right. Your bank knows if you have funds available, why would they place the hold? The gas station does it to ensure the card is active and there is funds available.


So does the gas station distrust AMEX?  Why am o having this issue with the Propel, but nothing else?  At the same stations?


Who knows? Maybe they want to discourage you from using Amex because the swipe fee is higher. 


That's a reasonable thought.  Odd that other AMEX card users are saying it doesn't happen to them, but of course, it's the gas stations that we're using making the call it seems.


Maybe its because they have less info coming back from an auth from Amex and they have to take a bigger chunk from them as opposed to other networks.

 

Example: Authorize gas on Mastercard. $1 hold, returns available credit : $17,354.   --> Cardholder good.

                  Authorize gas on Amex. $100 hold, returns available credit: N/A.  --> $100 hold due to available credit not known.

 

One way to test that is to use a maxed out non-Amex card that does not allow over the limit lol.

 

Or maybe, this has nothing to do with what actually happens lol.

Scores, HPs/24 mos. (updated 01/13/21):
    Experian FICO Score 8 = 828, 1/24
    Experian FICO Score 9 = 813, 1/24
   TransUnion = 811, 1/24
    Equifax = 813, 0/24

Total 2020 rewards, incl. offers/deals = $1,388.00

Total CL: $247,000

Cards (hover over for CL | interest rate | Date Opened):
Message 45 of 48
Heatt99
Regular Contributor

Re: Gas station holds - how they differ

It's more likely 3 things happening. The network for processing ie. Visa, MC, Amex, Disco, the gas station you're using, and the financial institution that makes payment for products & services.

I too was shock to see $100 hold for $30 of gas, but I got use to it, and I know what pumps and cards will hold what typical amount until the final transaction post. Citgo is by far the worst when connected to mom & pop's stores.

Message 46 of 48
Nomad3
Frequent Contributor

Re: Gas station holds - how they differ


@ReturnOfTheCredi wrote:

WF, btw, holds my payments as well.  My payments will post one day and three days later, it still hasn't been added back to my credit line.  They claim it's because I'm new to them and my payment account is external and that it will get better, but after clearing six payments with them (all good size), it hasn't made any difference.


I had the same problem with payments clearing and not releasing available credit for up to 7days. After I cut my 2nd statement (3rd technical because they cut a $0 statement when they mail the card) this stopped happening and now when I pay the available credit is refreshed when the payment clears. I had no prior WF history and was paying from a non-WF bank.




Goal: Mortgage/Chase Trifecta






Message 47 of 48
SouthJamaica
Super Contributor

Re: Gas station holds - how they differ


@ReturnOfTheCredi wrote:

I just started using my new WF Propel card at the beginning of the month as my "daily driver" and noticed something I'd never seen before when stopping for gas: Gas stations......ALL OF THEM....place a $100 hold on my card for every swipe, even cancelled transactions!  This lasts for 5-6 days at a time.  When I contacted WF support, I was told this is normal and all cards do it.  I've been using my Cap1 Venture and then my Savor as my daily card for years and had never seen this before, but figured it may have been me just not paying attention as my credit line is much bigger on those cards and WF had started me at $3k which means I have to pay attention more.  My car is diesel and I later stopped at a station where all the diesel

pumps are located under a tractor trailer pull-through.  When I pumped there.....an instant text notification of a $350 purchase/hold against my credit line!  I understood why since it catered to trucks, but WOW!  Called again and told the same thing.....all cards do this.

 

This morning, I put that to the test.  Tried the Savor at that exact same pump: They put a hold on $1.00, immediately refunded that hold and charged the actual $33.00 in its place.  So the WF line that it's normal and "all cards do this" is bunk.  WF does this.  Cap1 does not.  Not sure about others.

 

Between this and the app ease of use.....and doing the math to realize my rewards will be roughly identical on either card.....it looks like I'm switching back to using my Savor.

 

Thought I would share for anyone who may not have realized any of this like me.


I've had that $100 hold happen to me a couple of times, but very rarely. It's not true that all gas stations do it.


Total revolving limits 677500 (584500 reporting) FICO 8: EQ 758 TU 777 EX 749

Message 48 of 48
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.