Re: OT- debit cards

Posted by bc on April 04, 2011 at 12:07:04 from (69.151.186.17):

In Reply to: Re: OT- debit cards posted by dhermesc on April 04, 2011 at 11:28:32:

d, that's because the old station you used to go to was running the debit cards as a credit. Credits don't hit the bank account until a day or four later depending upon if a weekend and holiday is in there. By then there may not be money in the account. It then depends upon the customer and bank whether the bank will pay it and charge an overdraft or just deny it as insufficient funds.

Running it as a debit with pin number checks the account balance at that time and the station can then deny it if there isn't enough balance. Since you haven't pumped any gas yet, they do what the motels do and that is preauthorize an amount such as $100 or whatever they choose. (Unless they wait until after the gas is pumped before you use your card.) The preauthorization is good for the business but not always for the purchaser as it ties up that money in your account for a while. Example would be if you have $120 in the bank, the station/motel ties up $100 in preauthorization for the purchase for a while, you only pump $10 worth of gas (leaving $110 in the account), then go to walmart to buy $75 worth of stuff, and you get denied at walmart because the account still has that $100 preauthorization from the station that doesn't immediately get released. It's not a problem if the preauthorization is released but they have trouble with motels not doing it for a few days so they can check the room for damage and so on and then when the clerk gets around to it. You have probably noticed that walmart and places now scan a check and send it through electronically like a debit and then hand your check back to you. It comes out of your account right then and if you don't have money in the account, they will reject it right then. (no more check float while you it takes a couple days for checks to clear when you are planning on your pay check to hit the bank on Friday)

The other consideration is who pays the fees to Visa. With Credit, the station pays the 5-7% fee to visa and with Debit, the bank pays a much lower charge around 2-3%. It is money out of the pocket when the margin on gas prices is very much so businesses prefer you to use a credit card and the banks prefer you run it as a credit. Also sometimes a credit card payment can be contested sometimes which ties up the money so the business can't use it until resolved. There are some places around here that won't take cards as a credit for those reasons.

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