I have had it happen on 2 occasions, and both timeswere at Motels...its irritating, even though I understand it, but in my opinion, its WRONG. Run the card for the purchase. Running it for more is simply bad bussiness and pisses of your customers.

 

Normally when you use a debit card at a gas pump the vendor (at least in this area) puts an additional $75 hold with the transaction. However, if you use a credit card, the transaction is posted as it actually occurs. My bank card can be used either way (debit/credit) and the bank advised me to always use it as a credit card at gas stations. First, they get a bigger cut of the transaction and second, it is credited to your account as soon as it hits anyway so the impact to you is the same. Never use a debit card at a hotel/motel--they normally hold an extra night's charge until the debit clears.

 

I had the same thing happen to me 2 months ago and when they did it it was at the end of the month. Just before my pension checks were deposited. It made my account overdrawn and I got hit with an overdraft. Then to top that off the bank charged me a second overdraft fee even though i was overdrawn only once. I am still fighting the bank on those charges. 60 bucks flew right out of my account. That 100 dollar hold was very expensive for me.

 

I haven't read all the posts, but after the first few, I googled the topic. Here is a good explanation of why the debit card hold occurs:

http://articles.moneycentral.msn.com...DebitCard.aspx

 

when they put the hold on your account, the merchant is not getting the cash so there is no interest accrued for them on your float......

 

Is this even legal? Never heard of it before - maybe cause of my age (60) they don`t think I`d trash a room and I`ve never had a hold on a gas purchase and I use both debit and credit.

 

I use cash for gas and credit for motel/hotel rooms. It is bad enough to have to go inside and pay before pumping, but this is ridiculous. Thanks for the warning.

 

Petro Express in Charlotte had signs on their pumps the other day that debit card usage would put a $125 hold on your account. That won't happen with a CC.

 

I was told by my bank to try to run all charges on my debit card as a credit transaction. They said a debit transaction does not provide purchase protection while a credit transaction does.

 

Mine was Hilton Hotel up north of NJ, I was p#ssed!! Nearly cause me overdraft my checking account!