OT Credit card charging

I've used nothing but a debit card most of the time, and only need a credit card for renting a car.
So I got one,
The debit card is set up to notify me when a charge is made over their minimum amount, which is $100.
I figured until I got used to the credit card, I would set that limit to their minimimum amount, $10.
So last Thursday I bought gas. My tank holds a little over 16 gallons.
An email comes shortly afterwards saying there is a pending charge on the card of $85, but I can't put $85 worth of gas in the car. And ~48 hours later, it becomes a permanent charge of $31.
I understand that when someone rents something, or maybe stays in a hotel with room service or one of those very expensive vending machines, that the seller wants to reserve a fairly large amount of money, to cover future charges. In case the car isn't returned the day the renter says it will be, or so they won't have to interrupt the drunk guy spending $20 for a candy bar to make him put more money on his account.
But when I pump gas, they may not know how much I'll pump when I start, but 5 or 10 minutes later, they know. Why did they keep $85 on reserve for two days?. What if someone is at the edge of his wallet and his credit and he needs to spend that 50?. I don't think anyone notifies anyone of this practice. If I didn't have the notification set below 100, I wouldn't know about this and I'll bet most people don't know.
Even I don't know who all does it. Is it all gas stations? Only Shell? Only Maryland? Is it the opera? What if you get more popcorn there than you and they anticipate?
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wrote:

Up here in Ontario, "pay at the pump" requires you to select the amount of gas you want. I always select "fillup up to $200", you can select 10, 20, 50 etc or "up[ 2" several limits. This pre-authorizes the card transaction (to the maximum limit)
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micky wrote:

Clearly, they have to pre-authorize your card for some amount, and it's sort of unfair to make the pump determine what sort of vehicle you are fueling. It wouldn't surprise me if the amount varies with the gas station. I have no idea why it would take 2 days to resolve the difference--that sounds like an error.

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On 12/26/2016 9:28 PM, Bill wrote:

The pre-authorization is fast. There are different ways for the actual charge to be made. Some retailers do all the charges for the day in one batch at the end of the day.
I get a notice that one of my bills is paid. I don't see the charge on my CC for at least two days.
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On 12/26/2016 8:47 PM, micky wrote:

Common practice to put a substantial hold. Most gas companies do it. The 2 day hold is the fault of the CC company as it takes them that long to reconcile. OTOH, I've charged things and they don't show up until two days later.
Good chance your debit card had the same hold too, but you may not have seen it.
I've seen the notification over the years, but don't recall where. BTW, restaurants do that too, putting in enough hold to cover a tip. Your hotel and car rental company will do the same.
Since you are going to Europe, the best exchange rate I got was on my debit card. I have a few Euros at home to take, but stop at an ATM at the airport when I get there to get cash. Keep in mind, if your card has a daily limit, you can only take that amount in USD. I've seen people try to get 400 Euro when they have a $400 limit.
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SNIP

Depends what bank handles the card. Some are AWFUL and I would never deal with them, even as a brick and mortar bank.

By it's very nature, a Debit card has no hold because it takes the money out of your account "immediately"

Never seen a restaurant do it, but around here we don't have to prepay at restaurants

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In alt.home.repair, on Mon, 26 Dec 2016 22:42:07 -0500, snipped-for-privacy@snyder.on.ca wrote:

I agree, except that if the debit card people can decide how much I really spent on gas, the CC people should be able to too. They usually work for the same company.
So maybe they too take out 85 and then put back 54? But there's that problem again. What if you only have $35 left in the debit card and you need 34 dollars of gas? Are they going to refuse to let you get it? and if the DC can handle this, whyy not the CC.
This is AmEx, and they now have prepaid cards**, which are one form of debit card.
**Not just for rich people anymore. They used to not be credit cards but charge cards. You had to pay the entire bill every month. My brother had one, and when he bought a car, he brought a check for the car but didn't included some of the add-on costs, so he charged them on the AmEx card, and went over his limit, and they cancelled him, even though they paid the charge and he paid them before the due date!!

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In alt.home.repair, on Mon, 26 Dec 2016 23:36:32 -0500, micky

I was up to 3 questions so I called and she said the hold is put on the by the store, not them (I guess that's obvious now that she said it) and siad if I were down to my last 30 dollars I should pay in the store instead of at the pump. They can put it through for 34 and then limit the sale to 34. I hope I'm never down to my last 35 dollars. Even on that trip in 1971, I never got that low, and I only started with 400..
I didnt' ask about debit cards, and she might not have known, but it seems to me it would be the same.
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wrote:

I don't run that tight but I bet you can go in and put $20 or whatever on the pump and that is all they will take from the account.
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On 12/27/2016 12:35 AM, snipped-for-privacy@aol.com wrote:

If you go in and prepay it should be that way. At the pump is a different story.
http://www.wcpo.com/money/consumer/dont-waste-your-money/how-to-avoid-dreaded-gas-pump-debit-card-hold http://budgeting.thenest.com/problems-using-debit-cards-gas-pumps-23710.html https://www.consumeraffairs.com/news/why-you-shouldnt-use-your-debit-card-at-a-gas-pump-091416.html
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In alt.home.repair, on Tue, 27 Dec 2016 17:17:15 -0500, Ed Pawlowski

Hey, these are about this very subject. Thanks for finding them. I didn't think to look on the web, maybe because I can't complain to the people on the web.

This one says pretty much what Wilkinson said. He sounded right to me.
Despite what others here have said, this pretty much says that this doesn't happen with credit cards (except for a one dollar hold), but that doesn't make much sense to me. Just as someone can run out of money in his debit account, one can run out of credit in his credit account. And plenty of people do.

" Oil companies have no idea how much juice you're going to buy before you've finished filling up, so will have your bank freeze funds to cover your purchase." Actually they have a good idea. They know how much you've spent in the past, probably many times in the past. They can even index to the cost of gasoline if they want a little more precision.
And they know exactly 10 minutes later. I don't object to the hold, only to it extending beyond the time the buyer puts the nozzle back on the pump and ends the purchase. (A little longer than the time it takes to fill a tank.)
{Final charge reporting } "can take as long as 72 hours.", but in the first url above, it said federal law limited it to 24 hours. For me it was a bit over 48 or 50.

This one is about skimming card numbers
Do you think the chip-cards will make that a) impossible? b) less likely?
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On 12/27/2016 7:28 PM, micky wrote:

That is a money making opportunity. Most CC will let you go a bit over your limit and they charge you a fee to do it. Epensice load for a few bucks over.

Supposed to help. It generates a one use code that even if copied won't work again.
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I have gone over my credit limit a few times and all that happened was I got a letter saying they raised my credit limit. I suppose they were thinking if it got high enough I would not pay it off the first month the bill came. They are on auto pay now so it really acts like a debit with the protections you get with a CC and I get cash back.
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At the pump in Canada it is the same - your card is "pre-authorized" for a certain amount - the card is "locked" so no other transaction that could excede your card limit can occur before the current transaction is finished, and the account is released with the actual amount charged to your card as soon as the transaction is finished (the pump shut off by you, or the maximum authorized purchace reached)
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On Tue, 27 Dec 2016 00:35:29 -0500, snipped-for-privacy@aol.com wrote:

Correct.. At least that's how "pay at the pump" works here. "pay in advance" or "pay before pumping" in the states may work differently, particularly if the payment machine isn't linked to the pump to shut it off at the amount paid for. Virtually all "pay at the pump" setups here are live connected to the credit card company over the internet at all times and work in "real time" - not "batch processing mode"
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On Tue, 27 Dec 2016 23:33:51 -0500, snipped-for-privacy@snyder.on.ca wrote:

I have not seen a pump that could not be loaded with an amount from the store in 25 years, even in remote little country stores. The problem with a debit in a pay at the pump situation is they can't charge you in real time and they do not know how much money is available until they attempt the transaction. If you pump $20 and only have 15, they are stuck so they put a hold on a big number to verify it is there and charge it later, freeing up the excess. The problem is it might be a day later. I don't understand why that is not immediate either. It is certainly not a hardware limitation.
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On Wed, 28 Dec 2016 00:20:47 -0500, snipped-for-privacy@aol.com wrote:

Must be the American banking system.
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On 12/27/2016 11:20 PM, snipped-for-privacy@aol.com wrote:
[snip]

Before Christmas one year, I was getting fuel at a Wal-Mart. They were offering a 10-cent-a-gallon discount with one of their cards. I went inside and bought a card.
The pump knew how much was on that card. It slowed down for the last gallon or so, and stopped at the right time.
--
Mark Lloyd
http://notstupid.us/
  Click to see the full signature.
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On Wednesday, December 28, 2016 at 8:43:41 PM UTC-5, Mark Lloyd wrote:

I used to buy the discounted Walmart cards. The lines at the pumps were always too busy to be worth the trouble. I can pay just about the same price at BJ's and get in and out quicker.
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wrote:

Simple - a debit card cannot authorize if you have less money in the account than you are asking for.. It is "direct bank transfer". It simply will not authorize and turn on the pump.

You can get "prepaid credit cards" from Mastercard and Visa now too - basically "gift cards"

AMEX would give ANYONE a card, and often even a "no limit" platinum card, but they had NO leaway. If you missed a 10 cent balance you were DONE. They were like a payday loan - SHYSTERS. Then you could get a "for fee" card that gave you time to pay the balance at ridiculous interest rates Then all the banks decided to beat AMEX at their own game, providing no charge revolving credit cards, with interest only charged if not paid in full on the due date.

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