Why do gas pumps shut off at $75? (credit card, buying, companies)

[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.

[Bydand]

The gas station owners have to find a middle ground between how much people usually get and how much they can put a hold on those funds in the account. When you swipe your card neither the station or your bank knows how much you are going to spend, so they put a "hold" on a set amount of funds in your account. If they set it too high, and there isn't enough to cover it, the card will be denied and the pump will not authorize and turn on. Most lately have been set at $50 or $75. Generally enough for average sized tanks and not too big of an amount that the card will not work.

[Jezer]

We have the same at pumps that take cards and the one I use is set at £60- around $120, or 10 gallons!

Not far off the truth!

[Driller1]

Originally Posted by Bydand

The gas station owners have to find a middle ground between how much people usually get and how much they can put a hold on those funds in the account. When you swipe your card neither the station or your bank knows how much you are going to spend, so they put a "hold" on a set amount of funds in your account. If they set it too high, and there isn't enough to cover it, the card will be denied and the pump will not authorize and turn on. Most lately have been set at $50 or $75. Generally enough for average sized tanks and not too big of an amount that the card will not work.

Thanks, I wondered that too! It drives me nuts! I can never fill the pick-ups with one swipe.

[muffinman]

I remember hearing about this before. The things banks and credit card companies do and most people don't know it. Chalk it up to another unfortunate side effect of higher oil (and thus gasoline) prices.

[trlhiker]

wow, $120 for 10 gallons. Ouch.

[Jezer]

Originally Posted by trlhiker

wow, $120 for 10 gallons. Ouch.

I exaggerated to make a point.

But it is $8+ for the equivilant of a US gallon.

[muffinman]

Even with current prices, 1 gallon of gas is still cheaper than 1 gallon of milk, for the moment. If a 12 oz. drink at Starbucks is over $4.00...what would it cost for a gallon of white vanilla chocolate latte?

[Ultrarunner]

I've stop buying gas at stations the will not allow my to fill the tank of my Chevrolet Service Van which is running about $120 per tank.

My Credit Cards or maybe it's the Bay Area Gas Stations have a built in anti-fraud measure that prevents more than 2 swipes at the pump by locking out the card. I've noticed this in San Francisco and Oakland.

It was starting to become very annoying with the $50 limit which required 3 swipes just to fill the tank.

[Niners fan]

Originally Posted by Bydand

The gas station owners have to find a middle ground between how much people usually get and how much they can put a hold on those funds in the account. When you swipe your card neither the station or your bank knows how much you are going to spend, so they put a "hold" on a set amount of funds in your account. If they set it too high, and there isn't enough to cover it, the card will be denied and the pump will not authorize and turn on. Most lately have been set at $50 or $75. Generally enough for average sized tanks and not too big of an amount that the card will not work.

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?