Released: June 22, 2008

Using debit card to buy gas can bring a surprise

Source: McClatchy-Tribune [Baltimore Sun] (Free Registration)

Some drivers paying for gas with a debit card are experiencing a different kind of pain at the pump.

Gas stations concerned about collecting on automated debit-card transactions are freezing large amounts of money in consumers’ checking accounts, causing financial headaches for some drivers who carry low balances.

When a consumer swipes a card at a gas pump, most gas stations freeze $1 as a confirmation that a valid checking account exists. That hold usually lasts for a few hours, but can stretch to a couple of days. The station later debits the actual amount of the gas purchased from the account.

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