Debit card transactions using the pay at the pump feature? (gas pumps)?

Question

I have had very little experience with a debit card, as we live in a rural area where myself and my hubby's bank does not even offer debit cards. I was a bank teller years ago, when they just offered atm cards. My son, off at college, has strictly a debit card. Me the giver and him the spender with that card. Why do transactions, specifically pay at the gas pump, (outside at the actual pump, swiping the card on the pump) post while as a pending debit for only $1, then when the actual transaction clears, up to three days later, it will go through for the whole amount. Why don't those sites just make the pending debit the same amount as the actual transaction?

Answer 1

Banks and credit card companies do this to verify the funds first, before allowing the transaction to occur. This verifies that the account is active, and funds are likely available. When gas prices were soaring about a year ago, some credit card companies and banks would debit for $60 because of so many drive-offs, then the actual amount would clear, say, $42, and the $60 "hold" was a wash. Let your son know, however, that some banks will allow you to use your debit card even when the funds are not available. The transactions will clear, then you're responsible for the overdraft fees, etc. Ask your bank about this to be for sure. Good luck!

Answer 2

The pump preauthorizes for $1.00 BEFORE you pump the gas. At that time, the actual price is not known. This is true for both credit and debit cards. The pump can't tell credit cards from debit cards.

Answer 3

they have to enter a value at the beginning of the transaction to verify the account is active... if they ran it again for the total of the purchase, it would "hold" the additional $1 authorization, while also getting an additional authorization for the full amount...

this is why it happens... i don't know what motivates them to do it (unless they get charged for each authorization)...

Answer 4

the station pumps detect that your debit card is not issued by the station company.The machine is charging you $ 1.00 to foreward the full amount
to your bank so the station get's there money.

Answer 5

it is done just to verify that the account is viable.. once the charge actually hits the account.. the dollar is removed.. it is more of a convenience to you than it is to the credit card service company.. if your child needs gas and the service company can't verify the amount.. then who do you think will be calling to say.. MOM!!! whats up?