A Reserve Charge for Paying at the Pump

[Quasiblogo]

Today, I tapped my credit card at a gas station pump to top off my car's fuel tank with 87 Octane gas. The purchase was for $32.66. Yet, my smart phone flashed a message from the credit card company about a minute later to say that the charge pending was for $175.00.

The gas station attendant said, "Oh, this is not uncommon. Your company charges you a 'reserve fee' of between $100-$200, and the pending charge will be reversed off in 7 to 10 business days. At that time, the true charge will show as a finalized transaction."

My response: "This has never happened with this card, nor with any other credit card I've used. I don't understand."

Attendant: "Well, one thing is certain, it is the credit card company's doing. However, if you call them, I'm sure they will back up what I'm saying."

Sure enough. When I called the credit card company, they asserted that what the attendant said was true--but that this only happens with credit card purchases for gas at the pump itself. If I prepay inside the store, then the reserve charge would not occur. When I told the company rep that I have never been assessed such a reserve charge, she was incredulous and didn't understand why.

What's going on? Is this some new, credit card industry phenomenon? Has this happened to any of you who read this? Note: I live in Upstate South Carolina.

 

[Nithavela]

Today, I tapped my credit card at a gas station pump to top off my car's fuel tank with 87 Octane gas. The purchase was for $32.66. Yet, my smart phone flashed a message from the credit card company about a minute later to say that the charge pending was for $175.00.

The gas station attendant said, "Oh, this is not uncommon. Your company charges you a 'reserve fee' of between $100-$200, and the pending charge will be reversed off in 7 to 10 business days. At that time, the true charge will show as a finalized transaction."

My response: "This has never happened with this card, nor with any other credit card I've used. I don't understand."

Attendant: "Well, one thing is certain, it is the credit card company's doing. However, if you call them, I'm sure they will back up what I'm saying."

Sure enough. When I called the credit card company, they asserted that what the attendant said was true--but that this only happens with credit card purchases for gas at the pump itself. If I prepay inside the store, then the reserve charge would not occur. When I told the company rep that I have never been assessed such a reserve charge, she was incredulous and didn't understand why.

What's going on? Is this some new, credit card industry phenomenon? Has this happened to any of you who read this? Note: I live in Upstate South Carolina.

This happens at EC cards in germany, too.

Basically, the "reserve fee" is the maximum amount you can buy after swiping the card, so thats the amount they put on your card. And then they substract the amount you didnt use up.

In Germany, this all happens before the money is pulled from your bank account. I guess that with US credit cards, its the same?

https://www.fox17online.com/2015/07/24/how-to-avoid-debit-card-holds-at-the-gas-station/

Going by the article, 7-10 days is unlawful, though. IANAL

 

[Quasiblogo]

Thanks for your input, Nithavela. Hmm, I can half understand this happening with a debit card, that being directly tied to a bank checking account. But, mine is a credit credit, and I pay the balance by making transfer payments from my checking account at my discretion. The credit card in question is not with the same bank as my checking account.

Yeah, that 7-10 day bit sounds onerous, not honorable.

 

[Saucy]

It's happened to me a few times.

 

[Quasiblogo]

It's happened to me a few times.

I figure it has to be random. At any rate, I'm voting with my wallet now and will only use the offending credit card for non-gas purchases.

 

[Gregory Thompson]

Today, I tapped my credit card at a gas station pump to top off my car's fuel tank with 87 Octane gas. The purchase was for $32.66. Yet, my smart phone flashed a message from the credit card company about a minute later to say that the charge pending was for $175.00.

The gas station attendant said, "Oh, this is not uncommon. Your company charges you a 'reserve fee' of between $100-$200, and the pending charge will be reversed off in 7 to 10 business days. At that time, the true charge will show as a finalized transaction."

My response: "This has never happened with this card, nor with any other credit card I've used. I don't understand."

Attendant: "Well, one thing is certain, it is the credit card company's doing. However, if you call them, I'm sure they will back up what I'm saying."

Sure enough. When I called the credit card company, they asserted that what the attendant said was true--but that this only happens with credit card purchases for gas at the pump itself. If I prepay inside the store, then the reserve charge would not occur. When I told the company rep that I have never been assessed such a reserve charge, she was incredulous and didn't understand why.

What's going on? Is this some new, credit card industry phenomenon? Has this happened to any of you who read this? Note: I live in Upstate South Carolina.

moral of the story, pay in cash.

 

[sandman]

With a debit card it's typical ....with a credit card ....I never had that happen ...until
the other day on a credit card.
I didn't realize it until a couple of days later when I was making a payment and it caught my attention. I called the place where I purchased the gas (not my typical place) it's a store with 12 pumps which I would reference as a gas station....but no....they are a party store that doesn't own the pumps....Marathon does ...OK.... how do I contact Marathon...."we don't have a number for them"
Long story short ...it was not a short story ...I tried for about 45 min calling different numbers on Marathon I finally talked to a 3rd party rep who filled out a ticket....only to receive a email from Marathon stating.....they don't have stores or operate in Michigan and yet my card statement specifically states Marathon Oil Wixom, MI ...etc.
A tad bit irritated I called a friend of mine who owns a different oil company. He explained that Marathon who is connected with Speedway owns the pumps, and they service/refuel those.... they don't actually have any "Marathon" gas stations in MI. He also stated that they and a couple other companies are doing that with credit cards due to rising prices. The best way to avoid that is to go inside and charge the specific amount on credit or debit ...don't use your card at the pump. You can dispute the charges with the card company or wait till the reserve fee falls off.

I will never go back to that party store and I will never buy a Marathon product again.

 

[Quasiblogo]

moral of the story, pay in cash.

Not a bad idea…except at night—where I live.

 

[Quasiblogo]

With a debit card it's typical ....with a credit card ....I never had that happen ...until
the other day on a credit card.
I didn't realize it until a couple of days later when I was making a payment and it caught my attention. I called the place where I purchased the gas (not my typical place) it's a store with 12 pumps which I would reference as a gas station....but no....they are a party store that doesn't own the pumps....Marathon does ...OK.... how do I contact Marathon...."we don't have a number for them"
Long story short ...it was not a short story ...I tried for about 45 min calling different numbers on Marathon I finally talked to a 3rd party rep who filled out a ticket....only to receive a email from Marathon stating.....they don't have stores or operate in Michigan and yet my card statement specifically states Marathon Oil Wixom, MI ...etc.
A tad bit irritated I called a friend of mine who owns a different oil company. He explained that Marathon who is connected with Speedway owns the pumps, and they service/refuel those.... they don't actually have any "Marathon" gas stations in MI. He also stated that they and a couple other companies are doing that with credit cards due to rising prices. The best way to avoid that is to go inside and charge the specific amount on credit or debit ...don't use your card at the pump. You can dispute the charges with the card company or wait till the reserve fee falls off.

I will never go back to that party store and I will never buy a Marathon product again.

I appreciate your feedback, sandman. Now that the “virus” has spread beyond debit to credit cards, it’s disconcerting to me that this issue is not widely discussed by media.

 

[Quasiblogo]

On further reflection, I wonder if between the gas station chain and the credit card company, they might not not appreciate that I top off every time my tank drops to 3/4 capacity. I do this because gas has been going up about 5 cents per day. They’d probably much rather see me pay for a full tank (presently around $92.00), which is ridiculous, and getting more so with every day that goes by.

 

[SeventhFisherofMen]

Today, I tapped my credit card at a gas station pump to top off my car's fuel tank with 87 Octane gas. The purchase was for $32.66. Yet, my smart phone flashed a message from the credit card company about a minute later to say that the charge pending was for $175.00.

The gas station attendant said, "Oh, this is not uncommon. Your company charges you a 'reserve fee' of between $100-$200, and the pending charge will be reversed off in 7 to 10 business days. At that time, the true charge will show as a finalized transaction."

My response: "This has never happened with this card, nor with any other credit card I've used. I don't understand."

Attendant: "Well, one thing is certain, it is the credit card company's doing. However, if you call them, I'm sure they will back up what I'm saying."

Sure enough. When I called the credit card company, they asserted that what the attendant said was true--but that this only happens with credit card purchases for gas at the pump itself. If I prepay inside the store, then the reserve charge would not occur. When I told the company rep that I have never been assessed such a reserve charge, she was incredulous and didn't understand why.

What's going on? Is this some new, credit card industry phenomenon? Has this happened to any of you who read this? Note: I live in Upstate South Carolina.

No this happened to me one night I only had like $30 in my bank and it withdrew $100 from my bank so I had no money for food. I used to live paycheck to paycheck so this was really sad for me. It only ever happened once tho

 

[Quasiblogo]

No this happened to me one night I only had like $30 in my bank and it withdrew $100 from my bank so I had no money for food. I used to live paycheck to paycheck so this was really sad for me. It only ever happened once tho

Ugh. So sorry this happened to you. Tomorrow, I think I’ll ping my congressman’s office.

 

[chevyontheriver]

moral of the story, pay in cash.

More and more merchants are adding a fee to use a credit card. It can be from three to four percent or more. Another reason to use cash. And if you want even one more reason to use cash, your purchase and location information when you use a credit card might be up for sale.

 

[SeventhFisherofMen]

Ugh. So sorry this happened to you. Tomorrow, I think I’ll ping my congressman’s office.

It's really sad they do that, some gas places are chill and only charge $1, it all depends

 

[Skye1300]

Today, I tapped my credit card at a gas station pump to top off my car's fuel tank with 87 Octane gas. The purchase was for $32.66. Yet, my smart phone flashed a message from the credit card company about a minute later to say that the charge pending was for $175.00.

The gas station attendant said, "Oh, this is not uncommon. Your company charges you a 'reserve fee' of between $100-$200, and the pending charge will be reversed off in 7 to 10 business days. At that time, the true charge will show as a finalized transaction."

My response: "This has never happened with this card, nor with any other credit card I've used. I don't understand."

Attendant: "Well, one thing is certain, it is the credit card company's doing. However, if you call them, I'm sure they will back up what I'm saying."

Sure enough. When I called the credit card company, they asserted that what the attendant said was true--but that this only happens with credit card purchases for gas at the pump itself. If I prepay inside the store, then the reserve charge would not occur. When I told the company rep that I have never been assessed such a reserve charge, she was incredulous and didn't understand why.

What's going on? Is this some new, credit card industry phenomenon? Has this happened to any of you who read this? Note: I live in Upstate South Carolina.

Wow, never had that happen before. What's the purpose of doing that? Sounds fishy to me. I don't trust credit card companies. Next thing you know they will only refund $150 instead off the whole $175 and will think you forgot about but.

 

[Quasiblogo]

More and more merchants are adding a fee to use a credit card. It can be from three to four percent or more. Another reason to use cash. And if you want even one more reason to use cash, your purchase and location information when you use a credit card might be up for sale.

Definitely factors to consider!

 

[Quasiblogo]

After sleeping on this…

Given that gas/petrol transactions seem to be targeted with higher fees, are we looking at financial institutions performing purchase-shaming (I’ll call it Buy-n-Cry)—an environmental protest and harassment against the consumer?

I like the use-cash solution, but if we ever go cashless, the squeeze will really be on…

 

[Quasiblogo]

Wow, never had that happen before. What's the purpose of doing that? Sounds fishy to me. I don't trust credit card companies. Next thing you know they will only refund $150 instead off the whole $175 and will think you forgot about but.

A legitimate concern, I think. And with this corporate crying wolf that some credit card companies are doing, we can’t always “safely” assume that their fee-ing us is not a fraud transaction. The total of $175 just might become a fraudster’s amount of choice, adjusted upward until some countries get wise to extracting their own oil.

 

[Sparagmos]

moral of the story, pay in cash.

Not really convenient for gas, and you miss out on the points!

 

[Quasiblogo]

Not really convenient for gas, and you miss out on the points!

I’m back to using a credit card that does not assess fees for gas purchases, to be unnamed, but it does remind me of a stagecoach—and yes, my wife accumulates enough points to redeem them as store cards, serving as our Christmas gifts to our daughters.