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Gas Station Pre-Authorization HoldsSeptember 15, 2023 We would like to provide more information about recent changes in pre-authorization holds at gas stations as we've received many questions from customers regarding higher hold charges. We have found that increased gas prices and the shift towards self-serve gas stations in Oregon have led merchants to raise their debit card pre-authorization hold amounts. A pre-authorization hold occurs when a debit card is used to pay for something. It can be used to hold hotel rooms and rental cars and is common at gas stations. The temporary hold is meant to protect the merchant in case the charge doesn't go through. When a card is swiped at the gas pump, the card issuer is sent a request for a predetermined amount that may be more than the purchase amount. The amount is set by merchants and can be as little as $1 and up to $175. For instance, if a motorist spends $40 on fuel using a debit card, a $150 transaction hold could occur. However, the purchase amount isn't final until your gas tank is filled, which is why a high hold amount is charged. You won't be able to access the difference between the hold amount ($150) and the purchase amount ($40) until the hold disappears. The transaction has the potential to be declined if there is not enough money in the checking account. In the scenario that there are not enough funds in the account to place the full hold, it will place a hold for whatever is available in the account to be released a few days later and then decline the purchase as the hold was unsuccessful in holding their full hold amount. Ways to avoid declined transactions include ensuring there is enough money in the account, using cash, or using a credit card. Since these holds are being placed by merchants, we [First Federal] cannot release these funds back to customers early. The amount of this pre-authorization hold varies by merchant, and we prefer for our customers to be aware of this when using a debit card to make transactions at gas stations. |
