Posted on 06/16/2007 5:59:15 AM PDT by BenLurkin
CHARLOTTE, N.C. (AP) -- So you're at the gas station filling up your vehicle, and without warning the gas pump shuts off. What? The tank isn't full, and you know your credit card isn't over its limit.
"Using my Visa card, I commonly hit a limit and I would be standing there scratching my head," Shawn Bloomfield, who pumps premium gas into his SUV, said from his home in Allentown, Pa. "I would always assume it is the gas station setting a limit on how much gas I could purchase. It felt like a ration scenario."
As the price of gasoline continues to rise, rules to prevent credit card fraud at the nation's pumps are confusing consumers who just want a full tank of gas.
Caps on transaction amounts -- or the total dollar amount of gas a customer can pump into their car -- are limiting some drivers of gas-guzzling vehicles.
"When I go to the gas station I now have to use two credit cards just for one tank of gas," said Paul Brisgone of Oxford, Pa. "Kind of defeats the convenience of pay-at-the-pump."
Brisgone, a field operations manager for a telecommunications company, said he alternates between three different credit cards -- two Visa and one MasterCard -- when filling up the 32-gallon tank in his Ford F-150 pickup.
"When I can go 400 miles a day, it inconveniences me if I need a full tank of gas and can't get one," Brisgone said.
Credit card companies say the policies, which aren't new, are designed to ensure that merchants and consumers are protected from fraudulent transactions that could occur at a gas pump.
When a customer uses their credit card at a cardholder-activated terminal, such as a gas pump, the transaction is authorized without knowing the final bill of sale.
Typically, consumers who use their credit card are not liable for any fraudulent purchases, and gas merchants are not liable either.
But credit card companies have established a protective layer by setting caps on how much gas a consumer can pump at any one given time.
That means in the event of any fraud, "the merchant is protected from bearing the cost of the fraudulent transaction," said MasterCard spokeswoman Joanne Trout.
But only up to a certain amount.
For MasterCard customers, it's $75. Visa and Discover users have a $50 pay-at-the-pump limit. Transaction limits vary for corporate card holders and American Express users.
Not all gas stations have to abide by the cap. And there are no limits if a customer goes inside and pays with their credit card at the counter.
The caps went unnoticed when gasoline prices were low.
"We get more calls, questions, when gas prices increase," said Visa spokeswoman Rhonda Bentz.
The average price of regular unleaded gasoline increased from $1.50 a gallon at the start of the decade to $2.28 a gallon in 2005, according to the American Automobile Association.
Today, gasoline prices are topping $3 a gallon.
"Yes, it's an inconvenience," said Bloomfield, who often reaches his $50 limit when filling up his Nissan Pathfinder. "I guess you could say it's a necessary inconvenience for more secure transactions."
Interesting. I’ve paid just over $50 with my VISA on a few occasions. No problems encountered.
I wonder if it is only in certain parts of the country — or whether AP is simply foaming at the mouth.
It costs me nearly $120 to fill my truck. My gas card only does $100 at a time. So I have to swipe it twice.
Several times I’ve had a pump stop at exactly $75.
AMEX cuts off at $100. Found that out while moving from Texas back to Minnesota. Filling up the tanks of two 26’ trucks averaged about $170.
(I like your tagline.)
This has happened many times to me. More recently I’ve noticed that certain gas stations where I’ve had this happen have raised the limit. What’s really annoying is that if you hit the limit, and try to use the same credit card again, it’s automatically rejected! You have to use different cards to complete the fill-up.
One piece of good news...a Texas oil company is proposing to build a new refinery near Elk Point, SD ...the nation's first in over 30 years. Fortunately there aren't many tree huggers and environmentalist wackos in South Dakota so it may actually get built.
I run into this all the time now. The truck I use for work has a 35 gallon tank, and I'm usually filling it up when it gets to the 28-30 gallon range.
I’ve had this happen to me many times in the past year. I just start from the beginning again and pump a second time until the tank is full. It’s pretty silly, really.
Has happened to me here in E TX with Visa debit. Seventy
five and auto shut off. I had no idea why, now I know.
Happened to me for the first time last Thursday. Stopped pumping at $50. Swiped card again & continued to fill up. I have to admit it freaked me out, standing there wondering what the #%&!! was going on!!
Yes, this is happening. I saw it at a Golden Pantry in Washington, GA.
It is interesting. When If ill up, its a $50 limit at the Chevron and $75 at the Mobil. I only have one card so it must be their limit.
I stopped using credit cards for gasoline some years ago, when I found that the stations around here commonly charge $75 against your card for even a $5 purchase. That is, they put a hold on $75. Why, I don’t know, but one station owner tried to explain it to me and it sounded like BS. No other type of merchant does this, in my experience.
I long for the good old days when I could fill ‘er up for nothing and Dad would pay the man next time they ran into each other. :)
I’ve never had it happen when I use my VISA debit card as a credit card. But, I *have* had it happen when I’ve selected “debit”, even though I’ve had plenty of money in the bank account. The pump will cut off after $40 or $50.
More of the modern pumps are doing things like asking you for your zipcode before letting you purchase gas.
}:-)4
This is totally legitimate. Credit card companies do this to offset the risk they take by allowing you to pay for a purchase with your credit card without signing any receipt as you would with any other purchase. This is why there are different financial processes in place if you pay inside the at the counter instead of paying at the pump.
Thank you,
Al
Out here in CA we have to punch in our zipcode to verify a purchase. Helps to curb the possibility of a stolen card.
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