New evidence about gas station pre-authorizations

For just about anything you want to get off your chest about credit cards.
13 posts
MemberSince99
Centurion Member
Centurion Member
 
Posts: 4913
Joined: Sun May 20, 2012 4:35 pm
Location: WI

New evidence about gas station pre-authorizations

Postby MemberSince99 » Sat Jan 18, 2014 7:00 pm

I used to believe it was the individual gas station that determined the amount of a pre-authorization. But I have seen new evidence that leads me to believe maybe it is the credit card company which does this.


I base that seeing how two different lenders handle pre-authorizations from the same gas station.


Amex has a 99 dollar pre-authorization which a couple of days later becomes the correct amount. Chase on the other hand has a 1 dollar pre-authorization which then becomes the amount.


I noticed this because I had been using my BCP card which always showed a 99 dollar pre-authorization for that station, then then I just logged into my Chase account and saw they had a 1 dollar pre-authorization for the same station.


So, I have to say this evidences leads me to think it's actually the credit card company and the gas station owners weren't BSing us. Does anyone have any similar evidence pro or con?


User avatar
Terry
Centurion Member
Centurion Member
 
Posts: 119
Joined: Fri Sep 28, 2012 9:22 pm
Location: Texas

Postby Terry » Sat Jan 18, 2014 7:46 pm

With my Chase Freedom Visa Signature card, I have noticed a $1.00 pre-authorization; within a few minutes the actual amount of charge replaces the pre-authorization amount.
AMEX Green Card - NPSL [Member Since 1995] ;)
AMEX Everyday Card ($25,000) 6/14 Backdated to 1995 - For 20% Extra Points Benefit
Chase Freedom Visa Signature ($17,000) - For 5% rotating categories
Citi ThankYou Preferred Visa Signature ($16,000) - 2% dining
Discover IT Humane Society Design ($16,500) - For 5% rotating categories
Firestone ($2,600) - For 0% financing
Home Depot ($10,000) - For 0% financing
JCPenney Credit Card ($7,000) - For special discounts
Sam's Club MasterCard - ($20,000) - 5% off gas at any fuel pump
Wells Fargo Personal Line of Credit - ($15,000)

FICO's - 767 EX, 778 EQ, 790 TU [02/2015]

benhollberg
Centurion Member
Centurion Member
 
Posts: 353
Joined: Mon Apr 29, 2013 6:51 pm
Location: Salt Lake City

Postby benhollberg » Sat Jan 18, 2014 8:00 pm

I don't own a car so I don't see gas stations very much but I've seen some pumps that say Visa, MasterCard, Discover preauthorize you for $50, AMEX $75. This is in Utah.
American Express Platinum Card
American Express TrueEarnings Card from Costco
Marriott Rewards Premier Visa Signature Card
Chase Sapphire Preferred World MasterCard
Discover It

User avatar
otter
Centurion Member
Centurion Member
 
Posts: 639
Joined: Sat Aug 24, 2013 8:45 pm
Location: Grand Forks, ND

Postby otter » Sat Jan 18, 2014 10:31 pm

I used to manage a gas station and currently manage a truckstop, so I can tell you it is definitely the card issuer who puts the hold on your card. But it's more complicated than that: (1) The amount of the hold can vary from station to station because some stations do their preauthorizations differently. Often this can vary from state to state. (2) You're much better off using a credit than debit card. You definitely don't want to use any kind of prepaid card because if your transaction "times out" before you start pumping or something else goes wrong, it may take you a month to get the hold off. (3) If the station "clears" the transactions as it goes(which is the trend), it may only take minutes for the hold to disappear. If the station does a settlement batch (doing all the transactions once a day), it may take a day or up to three days.

The card issuers put a hold on your card because once they give the pre-authorization, it's like an assurance that the station will get paid. They do the same thing at restaurants (in case you decide to be a super generous tipper) and hotels (in case you decide to call Bangladesh from the phone in your room).
In my Wallet:
  • Amex PRG NPSL[3-14, bd 91]
  • Sallie Mae MC $8000[1-14]
  • Chase Freedom $4700[1-14]
  • Discover It $2750[8-13]
  • BoA UCF Alumni Cash Rewards $5000 [3-15]
Sometimes in my Wallet:
  • GM BuyPower WEMC $5000[9-14]
  • Wells Fargo Propel 365 Amex $7000[4-14]
  • Barclaycard Arrival WEMC $7000[3-14]
  • BoA Better Balance $3000[2-15]
In my sockdrawer: Amex BCE $1000[10-13, bd 91], OCCU Duck $10000 [11-13], The Sportsman's Guide Visa $8000[8-14], Chase Slate $4000 [9-14]Delta Gold Amex $2000 [2-15 bd 91], Diners Club MC $20000 [10-14] Commerce Bank Visa $2000 [3-15] Citi Double Cash $1000 [3-15]
Total CL: $90450

MemberSince99
Centurion Member
Centurion Member
 
Posts: 4913
Joined: Sun May 20, 2012 4:35 pm
Location: WI

Postby MemberSince99 » Sat Jan 18, 2014 11:06 pm

Otter your post on FICO with Jim Bob and Cletus made me laugh!

MemberSince99
Centurion Member
Centurion Member
 
Posts: 4913
Joined: Sun May 20, 2012 4:35 pm
Location: WI

Postby MemberSince99 » Sun Jan 19, 2014 8:13 am

Speaking of FICO reading the advice the "experts" there (and I use that term loosely) give people just kind of infuriates me sometimes. They have that cultish mindset how the garden is some kind of hippie stoner colony and this whole creepy way of life, and tell people without really even thinking what they are saying to not app for anything for just arbitrary lengths of time regardless of that person's circumstances (though judging by all the seedlings I see none of them seems to follow their own advice). For example one guy has had a low limit (300) card since Aug of 2013 and wants to app for Amex Green so he asks those morons if he should (yes I know we ALL know what these sages of credit will say). He further explains he then wants to go for Citi and Chase, and wants all TLs reporting by the time he goes for a mortgage in June 2015 and gives his scores as just under 700.


Now they have some of his info, and also where he wants to go, but NATURALLY they just drone on about AAoA and not app'ing and all the usual crap without any thought about HIS situation and tell him to wait until Dec 2014 to app for anything. Um, WHY, just because you pulled that date out of your behind, with your mind clouded by pot smoke?


Personally I would take all that he said into account, and knowing Amex likes to see at least 6 months I would advice him to wait until he has 6 months reporting on the 300 card so I would app after it reports in March with low utilization. That's all you need, what the hell is with Dec 2014? Amex is also a special bird in that you want it as soon as possible for something called backdating.


Then knowing what I know of Citi and Chase, I would app for Citi first in May with one new account and inquiry showing in the last 6 months, THEN app for Chase, as they are easier to recon with, also in May.


Then you are set and have the best chance to achieve your goals.


I mean their cookie cutter answers blinded by fanaticism and weed from their garden is just counter productive. I wonder how many people let these idiots talk them into actions that don't meet or suit their long term goals.


That's why it's bad to let other people think for you and make your decisions for you.

User avatar
otter
Centurion Member
Centurion Member
 
Posts: 639
Joined: Sat Aug 24, 2013 8:45 pm
Location: Grand Forks, ND

Postby otter » Sun Jan 19, 2014 10:53 am

A lot of people on FICO give bad advice. That's one of the reasons I've started posting there... for humor and to hopefully give some good advice and tell it like it is... like the guy who had 8 collections (recent), small credit lines(shopping cart tricks), and wanted to know the secret to having a 700 score by the end of this year. Everyone else was trying to give him false hope. I told him the sad truth- it's not going to happen this year.
In my Wallet:
  • Amex PRG NPSL[3-14, bd 91]
  • Sallie Mae MC $8000[1-14]
  • Chase Freedom $4700[1-14]
  • Discover It $2750[8-13]
  • BoA UCF Alumni Cash Rewards $5000 [3-15]
Sometimes in my Wallet:
  • GM BuyPower WEMC $5000[9-14]
  • Wells Fargo Propel 365 Amex $7000[4-14]
  • Barclaycard Arrival WEMC $7000[3-14]
  • BoA Better Balance $3000[2-15]
In my sockdrawer: Amex BCE $1000[10-13, bd 91], OCCU Duck $10000 [11-13], The Sportsman's Guide Visa $8000[8-14], Chase Slate $4000 [9-14]Delta Gold Amex $2000 [2-15 bd 91], Diners Club MC $20000 [10-14] Commerce Bank Visa $2000 [3-15] Citi Double Cash $1000 [3-15]
Total CL: $90450

MemberSince99
Centurion Member
Centurion Member
 
Posts: 4913
Joined: Sun May 20, 2012 4:35 pm
Location: WI

Postby MemberSince99 » Sun Jan 19, 2014 11:55 am

Wow. I mean I can see giving him hope, as in SOMEDAY you can have that 700 plus score, but like you said false hope is bad because as you pointed out, it's not happening this year. I suppose they droned on about "garden" and all that yadda yadda nonsense. But that is an utterly unrealistic goal in his case.


One thing I will say I personally like your humor on there but be careful - if one of the mods finds your posts offensive they'll get you banned there and it doesn't take much. If one of the mods is a hillbilly who married his sister he may not take kindly to making fun of good ole Cletus and Billy Bob.

User avatar
otter
Centurion Member
Centurion Member
 
Posts: 639
Joined: Sat Aug 24, 2013 8:45 pm
Location: Grand Forks, ND

Postby otter » Sun Jan 19, 2014 12:12 pm

MemberSince99 wrote:One thing I will say I personally like your humor on there but be careful - if one of the mods finds your posts offensive they'll get you banned there and it doesn't take much. If one of the mods is a hillbilly who married his sister he may not take kindly to making fun of good ole Cletus and Billy Bob.


I thought about that before I clicked on "post" but figured FICO is probably worried more about offending Cap One reps in Bangladesh than they are about a post which offends half the people in the deep south.
In my Wallet:
  • Amex PRG NPSL[3-14, bd 91]
  • Sallie Mae MC $8000[1-14]
  • Chase Freedom $4700[1-14]
  • Discover It $2750[8-13]
  • BoA UCF Alumni Cash Rewards $5000 [3-15]
Sometimes in my Wallet:
  • GM BuyPower WEMC $5000[9-14]
  • Wells Fargo Propel 365 Amex $7000[4-14]
  • Barclaycard Arrival WEMC $7000[3-14]
  • BoA Better Balance $3000[2-15]
In my sockdrawer: Amex BCE $1000[10-13, bd 91], OCCU Duck $10000 [11-13], The Sportsman's Guide Visa $8000[8-14], Chase Slate $4000 [9-14]Delta Gold Amex $2000 [2-15 bd 91], Diners Club MC $20000 [10-14] Commerce Bank Visa $2000 [3-15] Citi Double Cash $1000 [3-15]
Total CL: $90450

JoDa
Centurion Member
Centurion Member
 
Posts: 235
Joined: Tue Mar 12, 2013 10:10 pm
Location: United States

Postby JoDa » Mon Jan 20, 2014 12:24 am

In my experience, Chase always does a $1 "hold" for a number of things (beyond gas stations, I've seen it happen from delivery food aggregators like GrubHub). The thing that burns my bottom is gas stations that won't let you pre-pay a certain amount if you're putting it on a card. Who CARES if I hand you $20 in cash or charge $20 to my card...that's all the gas I want, so run it. Obviously, I had this problem when I was young and short of credit lines and cash, but even today, it KILLS me when I borrow someone's car and want to put X amount of gas in it and that's IT. Sure, I'm fully capable of cutting a pump off when it gets to the amount I want, but I just don't understand the complaint about taking my card at the counter versus the pump. I've taken to buying a soda or something and asking for that plus the gas to get them to run it in the store, since that's usually effective. For me, gas pumps are ripe for fraud and theft (it would be easy to install a skimmer on them, if you pay at the pump you have to wait for it to clear your transaction when you're done so that the next guy doesn't just pull up and fill up on your tab, I have to hold onto my wallet like it's made of damn gold because we have "grab and run" thieves INFESTING every gas station around here, etc.). It would be safer, for me, if I could go in, pay what I want, and then lock my wallet/purse back up in the car before filling.
CSP $19K
BOA $4K
UMP $11.5K
Target Visa $1.5K



Return to “General Credit Card Talk”

Who is online

Users browsing this forum: No registered users and 1 guest