Problems With Using Debit Cards at the Gas Pumps

• Consumers often prefer to use debit cards for their purchases, including when paying for gas. One advantage of using your debit card is that you don't carry a balance. However, some consumers have experienced problems associated with paying for gas with debit cards at the gas pumps. Learning what these problems are can help you keep more money in your bank account.

Frozen Funds

• You may not be aware that your bank will often block up to $75 when you pay for gas with its debit card. The block generally stays in place until the gas station runs a batch transaction for the actual amount. Although your bank determines the length of the hold, each gas retailer dictates the hold amount. For instance, Shell requires a $1 preauthorization for gas, while British Petroleum preauthorizes $75, according to MSN.com. A preauthorization is not required if you use your PIN, as such transactions are processed instantly.

Bounced Checks

• Blocked funds often mean overdraft and bounced-check fees for the consumer. Some banks, such as Bank of America and Wells Fargo, agree that if the hold is removed the same day that it's put in place, the account holder will not experience bounced checks. However, if the hold remains more than a day, any checks presented for payment could bounce. Fortunately, if you incur a bounced-check fee due to a blocked amount and you bring it to the bank's attention, the bank might credit the amount back to your account.

Transaction Fees

• Paying inside for your gas with a debit card is not always the best solution to avoiding blocked funds. Some banks charge a transaction fee whenever you use their debit card to make a purchase. Banks often consider PIN-based transactions as ATM transactions.

Skimmed Debit Cards

• Entering your PIN at the gas pump is risky. You run the risk of someone stealing your PIN. Thieves can install a skimmer, a device that can read and record your account information as you slide your card through the device. It also can record your PIN as you enter it on the ATM keypad. Depending on the type of skimming device, you may not be aware that your debit card was skimmed until your funds disappear from your bank account.