Little Rock - Airdate: May 25th, 2009

Many travelling Arkansans gassed up their vehicles once..maybe twice…this holiday weekend.

If you paid with a debit card…watch out. You may experience a different kind of pain at the pump.

Here's Seven-On-Your-Side's Jason Pederson.

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Meredith Coleman says she was hosed at the pump…not by rising gas prices, but by a station that froze money in her account well over the amount of her purchase.

(Meredith Coleman/Little Rock) “I went in there and did a ten dollar transaction for gas and I end up having 150 dollars taken out of my account.”

Entering your pin means your account is instantly charged.

When a pin is not required, which is often the case at a gas pump, the merchant doesn't know exactly how much you are about to spend.  So a business can freeze any amount…often $75 dollars but sometimes up to $150 dollars…to make sure it gets paid.

And that money stays frozen…unavailable for you to use…until your bank runs through the amount of the actual purchase.

That may take a few hours. In Meredith's case, it took a few days.

(Coleman) “I did suffer overdraft charges from the bank…$35 dollars. You know, each time you overdraft that is a $35 dollar charge.”

Some tips to help keep account holds from adversely affecting you:

Pay with your debit card inside where a pin number is required.

If you pay at the pump, use a credit card. You are less likely to be flirting with credit limits.

Ask a gas station, hotel or other business about their hold policy.  Many only freeze one dollar...and that is simply to make sure the account is active.

(Coleman) “You just have to be aware what gas stations you go to and just don't use them. Don't support their business.”

Meredith says she got conflicting information when researching her freeze. Her bank told her it was the gas station freezing her money. The gas station blamed her bank. But she says if it was her bank she doesn’t understand why it doesn’t happen at all gas stations she visits.  Freezing funds has been done for years when a hotel reservation is made as the hotel has no idea what kind of incidental charges you may incur...things like telephone calls, room service or movie rentals.   

 

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