Complaint Review: Shell Gas Station - Brick New Jersey

The bank doesn't decide/set the policy of the gas station. As Robert said some gas stations will not authorize or hold any amount, some will authorized $50, $75 or $100 (the most they will allow you to purchase) and then process for the exact amount purchased. But this process is selected and implemented by the gas station. The only part the bank has in it is to approve or decline the amount requested by the gas station.

As far as your point about $1 being authorized and the other $19 not showing until the station requests payment is easily taken care of by the account owner keeping an accurate rgister and looking at that for their balance, not looking online or ATM to see what they can spend.

As a matter of fact..if you use a magnifying glass..you will actually notice it is on a decal on the pump (at least I notice that here in California)...that a using a debit card (which requires a PIN)..could result in a 50-75 dollar hold for up to 3 days.

There may be reason for this..but mostly because the entire system has become a clusterf**k..due to the BANKS wanting and encouraging a debit card, to be a credit card. Why you may ask? Simple reason. Fee revenue.

Now, in an attempt to explain this...I may create even more confusion..but this is the story...

The bank is only out for itself, no news or surprise there. Now if you use the debit card AS INTENDED..you will select "DEBIT" as your choice if paying at the pump (it gives you that choice but is not always or seldom prompted), and the bank will cover it. Since a debit card transaction is essentially "instant", to cover themselves in the event of an overdraft, they charge 50-75 (which is "held" for what reason I can only  use conjecture) depending on the card..and if that clears, they authorize the transaction. This is actually not a bad thing for the consumer..as if you made an error in your accounting, or were careless...rather then the bank approve the transaction which will cost YOU a $35.00 or so fee..it will be declined. Typically if the account can not cover the 50-75 dollar "hold", the screen will state something to the effect "transaction can not be completed at this time. please see the attendant inside".

When you do..you may say to the attendant for example "I would like $20.00 on pump 6 please", and as long as the account can cover the 20 bucks..you get your gas..no overdraft, and all is well.

The difference is..if you select "credit" with a DEBIT card (or fail to notice it automatically assumes credit unless you select DEBIT before pumping even though not clearly warned or prompted)..this can be a problem. Because then the defective rip off "system" charges only ONE dollar to check that the card is valid..and then you can pump away to your hearts content..or for as much as the tank can hold.

In this case there can be an issue if you have pumped more gas in then the account can cover..which could mean overdraft fee time. Personally, I don't have a great desire to pay an additional $35.00 to line the bankers pockets for the "privilege" of putting some gas in my car.

Granted, since the BANK is the one ALLOWING and ENCOURAGING your DEBIT card to be used as a CREDIT card..they are somewhat responsible. I had always wondered why in my terms I noticed that the BANK themselves..recommended that I select "credit" for "security" reasons.. as implicated there is some criminal stalker behind me watching over my shoulder and could be getting my PIN. Sounds good on paper..seems the bank cares so much about my financial security...but then..think about this.

If someone was to steal or find my card and use it...and select "CREDIT"..guess what? Need I have to say more? This one is self evident.

From strictly observation and monitoring my accounts, the difference between the $50(or what ever holds) and the $1 authorizations is basically the follwing.

If you use a Debit Card as a PIN-Based transaction the station will hold a set amount of money.  Depending on the station, this could be anywhere from $50-$75(although I have heard of some that hold up to $100).  Then when they reconcile their records they remove the hold and debit the actual amount pumped.

If you use your Debit Card as a "credit" card, the station will only authorize $1 on the card.  When they reconcile they then charge the actual amount pumped.

Now, either of these only apply to "Pay-at-the-Pump".  You can avoid this all together by going into the Cashier and paying for a set amount of gas.  When you do this they charge you the amount you are purchasing without any of these authorizations or holds.

I don't know if it is a Shell station policy or an individual policy of the station owner, but the exact same thing happened to me last week in West Palm Beach - only the figures were higher. I spent $50 on gas and BOTH the $50 and ANOTHER $75 was placed on my credit card. I noticed it the next day on my online bill as two pending transactions. Naturally I called the cc co and they said one is an authorization and it will stay for "up to" 7 days until the charge posts to my account. If the station does not actually charge during that time, then the authorization will drop off. There was no explanation as to why the actual charge of $50 was not included in the $75 authorization. In my case the authorization actually dropped off within about 3 days. So for 3 days I did not have 'use' of $75 of that cc. I didn't need it, but that is not the point.

I don't have this problem with other gas station brands (BP/Chevron etc). I'm not in your area, I'm in Fl. Maybe it is a Shell policy. Although there was no issue with my cc card, I'm not going to Shell anymore as a result. IMO taking out $125 to fill up your tank with gas is too much.

This is a standard practice at gas stations all over the place..not a surprise.  Use a credit card, or go inside and pay instead of using your debit at the pump...easily avoidable problem.