Why do gas pumps shut off at $75? (money, bank, average)

[mm34b]

Originally Posted by Niners fan

In Southern California the gas pumps shut off at a certain amount when filling up with credit card or debit card at the pump. Usually it is $75. Anybody know why? It seems like an odd business practice.

Confusion at the pump as credit cards limit gas purchases

[Mikieo415]

Originally Posted by Niners fan

This sounds right for debit cards. One of the stations I go to has a notice posted about how banks put a hold on a certain amount on their account and the station has no control over it.

But I still don't understand it. It's not like the grocery store (or anywhere else for that matter) limits me at $75.

And with a credit card why should it make a difference?

I appreciate your response, bydand, but are you sure or is it just a guess?

The approval is given when you swipe your card before you pump your gas. Nobody knows how much gas you are going to purchase, so the swipe is not actually debiting your card or charging your credit account for anything. At this time a hold of usually $1.00 is applied to the card only to make sure the card is valid. Then, sometime well after you finish pumping is the transaction finalized. It is usually done at the end of the business day for the gas station. At that time the charge is applied to the card and the $1.00 authorization/hold is released by the merchant, and then released by the bank according to the account holder agreement. The $75 dollar limit is in place because as gas prices rise, gas purchase amounts are higher than before. Since the total purchase is not authorized at the time you pump, the gas station is making sure that they don't have a delay in being paid or not get paid altogether because the card was stolen.

[Niners fan]

Originally Posted by mm34b

Confusion at the pump as credit cards limit gas purchases

I guess I still don't get it based on the article. If you are using a debit card then you have to enter your PIN. That should be enough fraud prevention to let you fill up.

Originally Posted by Mikieo415

The approval is given when you swipe your card before you pump your gas. Nobody knows how much gas you are going to purchase, so the swipe is not actually debiting your card or charging your credit account for anything. At this time a hold of usually $1.00 is applied to the card only to make sure the card is valid. Then, sometime well after you finish pumping is the transaction finalized. It is usually done at the end of the business day for the gas station. At that time the charge is applied to the card and the $1.00 authorization/hold is released by the merchant, and then released by the bank according to the account holder agreement. The $75 dollar limit is in place because as gas prices rise, gas purchase amounts are higher than before. Since the total purchase is not authorized at the time you pump, the gas station is making sure that they don't have a delay in being paid or not get paid altogether because the card was stolen.

This explanation makes the most sense to me. I suppose if your card doesn't go through at the grocery store then you don't leave with the groceries. There isn't a good way to take the gas out of your tank if your card is declined.

[Bydand]

I wasn't talking about regular credit cards, just debit cards. Guess I wasn't real clear about that, oops. I've set up MANY gas station pump controllers as part of initial installation.

[migee]

It's probably to remind us what suckers we are...You know like the carnival hucksters that take your money, and then fish you in to lose more...And, you go ahead and do it...

[TKramar]

Originally Posted by Niners fan

In Southern California the gas pumps shut off at a certain amount when filling up with credit card or debit card at the pump. Usually it is $75. Anybody know why? It seems like an odd business practice.

What's the size of your tank?! At just over $3 a gallon, we might spend $40 every two weeks to fill up. And that fills the tank.

[_yb]

If you don't like the limit just take your card into the station and tell the cashier that you want to fill up. After you fill up walk back in and get the cashier to swipe your card for that ammount. Even when I do that the limit is 300.00 I need more of a limit than that these days in my work truck.

[Niners fan]

Originally Posted by TKramar

What's the size of your tank?! At just over $3 a gallon, we might spend $40 every two weeks to fill up. And that fills the tank.

1) I paid $3.57 per gallon yesterday. California has high gas taxes. (As an aside - ever notice that Atlanta often has the lowest prices in the country? The gas taxes are relatively in GA. I wish the media would give us pre-tax prices for the sake of comparison.)

2) I have a regular Suburban. I don't know how large the tank is but if it is really empty then $75 does not fill it up. (We live in a tourist town in the mountains where the gas is usually 60¢ more per gallon so we usually only fill up when we are in the "big city.")

[shadowwalker]

Here east of Nashville,TN. I can use visa and get a $75.00 fill or mastercard and get a $50.00 fill. And then I have to reswipe my card, which is a Debit card.

[Bydand]

Niners fan, I hear you about the Suburban. I have two of them. One has a 40 gallon tank the other a 42 gallon tank. First one I bought was riding on empty and I filled it up and almost passed out when I saw how much it took. Oh, to go back to that amount today!