If you went to the gas station recently, you probably already noticed that gas stations have raised the credit and debit card holds from $125 to $175. Sounds bad, but what exactly does this mean? Let us catch you up to speed. In this short guide, we will learn how to avoid overdraft at the gas station, what a credit card hold is, how it affects a debit card, and how it affects your funds in general.
First, let us define what a credit card hold is and what the difference is between credit and debit card holds. The industries that use a credit or debit card hold are places like gas stations, hotels, or car services. All offer services with a flexible final purchase amount, which often puts them in a position of risk if the customer does not have sufficient funds for what they purchased.
In order to protect themselves from the risks, they do something called an “authorization hold.” It protects merchants from financial risks and even fraud. An authorization hold is also the banking industry’s way of verifying electronic transactions.
During the hold, the credit card processor of the merchant (in this case, the gas station) takes a certain amount of money from your balance and freezes it until your transaction is settled. Think of it like a deposit made to protect the merchant from stealing. Usually, with gas stations, this hold is lifted within hours.
The difference between credit and debit card holds
When an authorization hold is placed on a credit card, it only affects your available credit line. But when it is placed on a debit card, it reduces your actual bank account balance. However, if you enter a PIN code when you make your purchase, the hold will often be cleared right away, as the transaction amount is immediately deducted from your bank account.
With the alarming rise in gas rates, two of the world’s largest credit card companies (Visa and MasterCard) have authorized gas stations to increase the amount of the hold, putting many at overdraft risk.
There are several ways to avoid it:
1. Make sure you have enough room on your credit line to pay for what you are planning to buy.
2. Carry two cards in case one gets declined.
3. Pay with cash.
These three tips will help you in any transaction you make. The following three tips are specific to gas stations:
1. Ask the cashier for a set amount of gas and pre-pay for it. The purchase will be authorized immediately, and the pump will switch off automatically.
2. Skip the premium gas. Most cars don’t really benefit from it anyway.
3. Use a gas app with a rewards program where you can earn discounts.
Beware! NEVER Put These Things on Your Credit Card
Credit cards might be convenient but there are some cases where you should avoid using them.
5 Cases in Which Using a Debit Card is a BAD Idea
Credit cards and debit cards are not made equal and in certain cases, it's a bad idea to pay with a debit card. Here are 5 such situations...
Ten Tips You Need to Consider to Save Money
Here are some tips to bear in mind when dealing with your financial situation.
How to Best Prepare for a Recession According to Experts
Hoping for the best but preparing for the worst - here’s our humble guide on how to best prepare for a possible recession.
How Did We Invent the Dollar? Learn Its Meandering History
In this video, we will learn a short history of the U.S. Dollar.
5 Tips to Protect Yourself Against Thieves and Pickpockets
How to frustrate pickpockets and avoid getting robbed of your money and valuables abroad.
21 Sizzling Hot Microwave Tips To Improve Your Life
The microwave is something we use every day, but did you know how many different ways you can use it? Here are 21 surprising uses.
Why Buy Candles When You Can Make Your Own at Home?
Why spend money on expensive candles when you can easily make your own? This guide will show you how.
These Uses For Yogurt Will Leave You Very Surprised
Yogurt can do a whole lot more than just taste nice. In fact, it has many different uses. Here are 10 alternative uses for yogurt.
Avoid These Email Clichés and Communicate More Effectively
Watch out for the outdated phrases below and upgrade your email vocabulary with thoughtful and unique sentiments.
6 Home Ingredients You Can Use to Clean Your Carpet
Got a carpet stain? Forget the dry-cleaners, try one of these methods instead.
12 Great Advantages of Being Bald
You thought hair loss and going bald was a BAD thing? Well, think again, as we go over everything that's great about being bald!
Guide: How to Reduce the Risk of Accidents at Home
As you age you will find yourself spending more time at home. This guide gives you tips and ideas for making your home safe, comfortable and easy to navigate.
Everything You Need to Know About Hearing Aid Fitting
So how does one choose the best hearing aid for them? This video will explain.
Manage Stress in Your 50s with These Meditation Techniques
Manage stress in your 50s with these meditation styles.
This DIY Solution Can Clean Even the Dirtiest of Bathtubs
Nobody likes getting down on their hands and knees to scrub the grime off the bathtub. Thankfully, this fantastic concoction will do all the hard work for you!
Calculate How Much Food & Drinks to Serve Your Guests
Planning out the perfect quantity of food for a party can seem like a tough task, but this guide makes it as easy as pie!
These Tips Will Make Your Grocery Shopping a Breeze!
Grocery shopping alone can be a stressful task. Learn the tricks of how to do your shopping with ease, even if you have kids around.
Step-by-step Guide for Removing Scratches from Wood
Use this handy guide to restore hardwood floors and wooden furniture to their former glory.
20 Incredibly Helpful Things You Can Do With Vinegar
Here are some great tips on how to use vinegar around the house. Try out some of these solutions and vinegar will never just be a salad dressing again!
Be Warned! This Battery Could Be a Danger to Your Home
If you use 9V batteries, you need to be aware of this vital information.
11 DIY Lamp Shades That’ll Brighten Up Every Home!
Lighting makes all the difference in a house's atmosphere but is usually super expensive. now you can make your own lampshades at a fraction of the cost!
7 Myths About Burning Calories
Burning calories is something we all want, but we need to know what we're doing first, and that means disproving these 7 common but misguided myths about calorie burning.
Cutting These Things In Half Did Wonders For My Wallet...
Cutting the amount of certain things you use in half is an excellent exercise in frugality. Furthermore, you'll save money. Here are 10 things to cut in half.
11 Reasons Why Garlic Is a Gardener's Best Friend
Not only is garlic extremely tasty, but it is also very effective in the garden. Check out its uses here.
WARNING: If You Love Dogs, This Information is Vital
If you're a dog lover, you should spread this information around. Don't feed dogs these common foods!
How to De-Ice Your Freezer and 11 Other Practical Tips!
How to find something you lost, how to find pipes under your floor and more handy shortcuts everyone should know.
Tutorial: How to Slice EVERY Type of Fruit!
Learn how to slice over 30 different fruit through this easy and fun tutorial video.
Video Turorial: How to Unclog the Toilet Without a Plunger...
Unclogging the toilet is never a happy task. I was happy to discover this easy method of unclogging the toilet without having to use one.
This DIY Shampoo Bar is Easy to Make and Great for Hair
Why harm your hair with toxic chemicals when you can make a natural shampoo bar at home?
10 Ingenious Uses for Your Old Rubber Bands
These are the rubber band uses that you never considered. Some of these are amazing!
A Must Have Kitchen Cheat Sheet to Help With Any Recipe!
Simple fact sheets that will turn any cooking job easier to understand.
Here's Why You Should Never Wear Shoes Inside Your House
Here are 7 reasons why you should get into the habit of taking your shoes off before you enter your house!
Your Toothpaste Can Be More Harmful Than You Think
Stop using toothpaste that fills your body with nasty chemicals, and try making one of these natural versions instead.
The Dirtiest Places In Your Home Will Surprise You
Bacteria can proliferate ad infinitum in the most unexpected places in the home. Forget the toilet, here's the low-down on the dirtiest things in your home.
10 Excellent Uses for Mayonnaise Around the House!
Mayonnaise is a great complimentary condiment for food, but did you know there are multiple non-food-related uses for this kitchen staple?
How to DEEP CLEAN Your Windshield Perfectly
Clean windshields are not just nice to looks at but also important for your safety! So if it's time to give your windshield a scrub, check out these important tips.
These 15 Surprising Cucumber Uses Will Come in Handy
Cucumbers are a very healthy addition to any diet, but they also have many other great uses that you should know about. Here's 15...
Rice Water - 6 Unexpected but Super Helpful Uses
After reading this article, you will never throw away rice water again.
Say Goodbye to Dreaded Wrinkles with These Fantastic Tips
Nobody, and we mean nobody, likes wrinkles. To prevent and treat wrinkles, follow these tips.
Make Cleaning Windows Less Tedious with This DIY Recipe
There is a quicker and more effective way to clean the windows in your house. Take a look at these two methods.
15 Easy Ways to Repurpose Household Waste in the GARDEN
Learn how to reuse waste and old or broken items to give your garden a real upgrade!
A Comprehensive Guide to Growing Your Own Veggies!
There's nothing like starting the day with a fresh vegetable garden, and now you can do so every day with this ultimate veggie growing guide.
Our Complete Guide to Peeling Fruits and Vegetables!
Each fruit and vegetable has a different way of being effectively peeled. Our guide will teach you the very best methods!
With Age Comes Wisdom! Great Advice From People Over 50
Why get advice from a book when you can get great advice from a person over 50?
WD-40: Here Are 12 Fantastic Uses You Never Thought Of
This is why you always need to keep a can of WD-40 on your property!
39 Smart Cleaning Tips You Just Have to Try
You can never know enough about cleaning. In This Video you can finds 39 great cleaning tips to make your life much simpler.