OT: Sticky Pre-Authorizations On Your Credit Card

[Wade Garrett]

Just got off the horn with American Express complaining that a gas station I tanked-up at last week still has not removed the $175 pre-authorization hold charge that they put on my card when I stuck it into the reader on their pump.

I can understand the reason for a pre-authorization charge-- to make sure the account has a high enough limit to make a valid sale. But once the hose is replaced on the pump, the transaction is finalized.

In my case, the amount was $26-- but they're blocking an extra $154 of my credit limit that they have no right to. And the worst part is American Express gives merchants *8 days* to remove the hold-- at which point Amex voids it.

Gas station pre-authorizations need to be cleared right when the hose is returned to the pump.

Same thing for rental car and hotel pre-authorizations. Remove them immediately when the transaction is finalized.

I'm not big on complaining to government about business issues...but there ought to be a law! Write your congress critter!

[Marilyn Manson]

Charges from other purchases may not hit your account for several days. I'm not saying 8 days, but the companies that put holds on cards don't have any visibility into the other transactions.

In addition, some transactions may not get processed by the gas station's bank immediately. It might take an overnight run, it might take a weekend. Some merchants use batch processing.

Again, I'm not saying 8 days makes any sense, but "when the hose is returned to the pump" may be way too soon to know if the funds are available.

Hotel rooms? They may wait to find out if you trashed the place or emptied the mini bar/snack safe before they deem the transaction final. Same goes for rental cars, except for the mini-bar and snacks.

I do have a question though. What station puts a hold on your credit card? I know about holds on debit cards tied to a checking account, but I don't think I have ever had a hold put on a credit card gas purchase. Car rentals, yes. Hotels? Not that I recall.

On the other hand, even though I use my Master Card for literally ever single purchase, I never get close enough to my credit limit for a $150 hold to bother me. And if it was an issue, I'd just use a different card. ;-)

[Ed Pawlowski]

I filled up three times in two days. Total about $210. All I see on my Discover card is a $1 charge for each. I have $25 from another charge but my credit limit is 16,900 of 17,000 Usually takes about 48 to 72 hours for be settled.

I think your gripe for the amount held should be with the gas seller though, pretty sure they determine the amount, not the card company.

How long does a hold on a credit card last? A credit card authorization, also known as a "hold," lasts anywhere between a minute and 31 days. Holds last until the merchant charges your card for the purchase and "clears" them, or they naturally "fall off" your account.Oct 26, 2021

More info here

[Cindy Hamilton]

I wonder if the Biden administration has had time to put the teeth back in the Consumer Financial Protection Bureau after the Trump administration gutted it.

[trader_4]

That's what I sometimes see too. Like one gas station here, $1 shows up on my Discover card, then it takes several days for the actual charge to show up. Seems all they care about is that the card is valid, not that it has enough funds. I agree with Wade, today you would think this could be resolved in 24-48 hours tops, not have some hold stay on. On the other hand, when you fill up these days, highest I've seen is $100 and by the time you're done, there isn't a huge difference, at least not for me anymore. I suppose if you have a Honda Fit or similar that only has a 10 gallon tank then you have an excess $50 hold.

[rbowman]

No, they're too concerned with providing abortions for pregnant men.

[Sam E]

[snip]

The assumption of dishonesty.

[snip]

[Marilyn Manson]

Which you knew about upfront when they told you about the hold. Don't stay there or rent from them next time if you don't like the process.

Ever go to a store where they look at your receipt on the way out? They sure aren't being nice and making sure you didn't leave an item in the check-out lane.

You call it an assumption of dishonestly. They call it theft prevention.

[invalid unparseable]

We were forced to use Amex cards for travel at work. We hated it as they billed before we were reimbursed for the travel. I canceled mine when I retired.

[Wade Garrett]

No, the $154 has no impact at all on my credit limit.

My Amex limit is $18k, I have a half-dozen other credit cards with similar limits which I pay off each month and my all my FICO scores are well north of 800. So no, I don't have problems managing my credit properly...and it's telling that you thought I did.

I raised the "hold time" issue because it would adversely impact hand-to-mouth, paycheck-to-paycheck folks. There's no justification for vendors/credit card issuers being allowed to do that.

You know, you should try not to be critical and so quick to be judgemental of folks and their posts. Make your mother proud, boy ;-)

[Edward Hernandez]

John Dope stated the following in message-id <svsh05$lbh$ [e-mail]

posted Fri, 4 Mar 2022

08:01:09 -0000 (UTC):

Yet, since Wed, 5 Jan 2022 04:10:38 -0000 (UTC) John Dope's post ratio to USENET (**) has been 66.5% of its posts contributing "nothing except insults" to USENET.

** Since Wed, 5 Jan 2022 04:10:38 -0000 (UTC) John Dope has posted at least 2494 articles to USENET. Of which 176 have been pure insults and 1483 have been John Dope "troll format" postings.

The John Dope troll stated the following in message-id <sdhn7c$pkp$ [e-mail]:

And the John Dope troll stated the following in message-id <sg3kr7$qt5$ [e-mail]:

And yet, the clueless John Dope troll has itself posted yet another incorrectly formatted USENET posting on Thu, 30 Jun 2022 01:15:37 -0000 (UTC) in message-id <t9itfp$1j0r8$ [e-mail].

bcvxL824AUKW

[rbowman]

I was amused to find some people try to game the system to get an 850.

[Cindy Hamilton]

Maybe those folks should pay cash, to avoid spiraling into debt..

[trader_4]

Here in NJ most gas stations charge 5c a gallon less if you pay cash versus card. I have a card that gives 1% back, so now with gas at close to $5, it's a wash.

I see Putin says he's OK with Norway and Finland joining NATO. But he says he doesn't understand why they are doing that. He says everything between Russia and NATO had been going very well. He must really be koo koo for cocoa puffs.

[Cindy Hamilton]

It varies here. Some charge more for credit, others charge the same. I generally won't stop at stations that charge more for credit. The one nearest my house doesn't, so that's my usual place.

Or lying.

[Ed Pawlowski]

Discover card had a June promotion of 5% back on gas. Just in time for a 2300 mile trip I made this month. I'm going to fill up again today, last day of the deal.

The most I paid was in NJ at 4.98, the least was SC at 4.48. I did see a price in NJ of 5.09 on the GS Parkway.

[Wade Garrett]

I really don't know why my FICO is so high. I paid off the mortgage many years ago, haven't had an open car loan or similar in a long time, and pay all my credit card bills in full and on time every month.

If I was still making mortgage and loan payments each month, I could see it.

[Wade Garrett]

That...or just exercise a little maturity, restraint, personal responsibility and self-control; i.e., not buy stuff they can't afford.

When you're pushing your cart down the aisle at Target, nothing jumps off the shelf and into it all by itself...

Reminds me of the Blonde Joke "I can't be overdrawn, I still have checks left."

[Ralph Mowery]

I am in the same shape. My score is just over 800. Being retired may help ? I do get SS and a pension that is about the same amount. I have 3 credit cards that are paid off when due. Then 3 or 4 store credit cards that I seldom use.

[Ralph Mowery]

That really happen to a fellow at work. His wife was not even blond. She was a real flake and he was not much better. Otherwise he was a good guy. Means well but did a lot of dumb things. Like putting about half a bale of straw and a can of charcoal lighter fluid in his chimney. Said it looked like a rocket when he lit it off. Cracked the chimney.