"Pay-at-Pump" Option. Good or Bad?
By jessigirl116
@jessigirl116 (848)
United States
September 7, 2008 9:12pm CST
My opinion? Bad. It's a simple, time saving option, but at what cost? What are the consequences when you choose the convenience of not needing to enter the store? If you don't go in, they spend less money, right? Nothing to catch your eye for you to needlessly purchase, just to regret it later.
Here's the bad part.
A few weeks ago, we drove from Oregon to Nebraska and back. We used the 'Pay-at-Pump' option at almost every stop. Not good. When we returned home we had received a letter from the bank. It was more of a memo. Anyway, it was letting us know that using that option meant that they could hold the funds for up to 5 business days. That meant it wasn't coming out as fast as we were checking the balance. We were a baby's breath away from being overdrawn. There is no hold on the money if we pay inside with a card. Go figure. Now they are charging us for our 'convenience'. Thanks a bunch.
Not only that, but at some stations, they charge an extra 6 cents per gallon for credit cards. Which is a good little discount if you carry cash. But, what's up with that? I have to pay more for using my card. Now, they are charging me twice. The 6 cent thing plus if you pay inside, there's probably a 45 cent transaction fee.
3 people like this
14 responses
@theproperator (2429)
• United States
8 Sep 08
That "hold" has always been a feature of pay at the pump. Usually, the hold is for $50 (which is less than it takes to fill many tanks these days anyway). But, if you only bought $10 of gas, the $50 is still on hold until the purchase clears, which is what can trip people up. I still use my credit card to pay at the pump though. I pay it off every month, so I don't have to worry about hitting my limit (I'm not vigilint enough to use a check card that way).
FYI, it is illegal for a station to charge you more for using a credit card purchase unless it is stated on the sign you can see from the road (may still be dodgy, even then). But, they are allowed to add the extra charge because credit cards charge the vendor a fee to process the purchases, and they are "passing the fee" to the customer.
2 people like this
@jessigirl116 (848)
• United States
8 Sep 08
The sign, although rather small, was placed on top of the pump. Not clearly visible from the street but visible when you pull up.
In Oregon it is illegal to pump your own gas, so an attendant comes out and gives you a slip to pay inside. We can still pay at the pump, but we usually don't. The two stations we always go to has something inside I always go in to purchase- crunchy ice for my soda(they are tiny soupcan shaped pieces of ice). So we don't pay outside.
On our trip, if we went inside, there was a fee for using the card, plus the 6 cents per gallon, but no hold on the money. We don't do that here, just the processing fee.
P.S. We use a debit card. No credit cards for us. Which is better, sometimes.
Thanks!!
@kimberlylynn (978)
• United States
8 Sep 08
I think most people with kids or even moreso babies, will agree that pay at the pump is the best. I hate dragging my kids into the store and then saying no as they ask for drinks and candy. I get everything I need there - gas and a receipt. I wouldn't pay 6 cents extra a gallon to use it, I have heard where some gas stations are accepting cash only or you have to pay extra if you use a credit/debit card because of the fees they get charged.
2 people like this
@jessigirl116 (848)
• United States
8 Sep 08
Well, that's the deal. Pay at the pump, or inside, and pay an extra 6 cents per gallon with your card. My kids are older so they can stay in the vehicle while I go inside. But they were little once and I know what you mean, they think 'going inside' translates into 'get something'.
Thanks!!
@sedel1027 (17846)
• Cupertino, California
8 Sep 08
I have never heard of that happening. We use pay at the pump all of the time and have never had funds held hostage to cover payments. We just drove though Louisiana, Mississippi, Tennessee, and Arkansas. Paid at the pump for gas at all stops and no fund on hold.
As far as charging more for credit, the only time I have seen that is for diesel at some truck stops.
1 person likes this
@jessigirl116 (848)
• United States
8 Sep 08
I think I'm moving down south. Better deals. Jk.
We left Oregon, went into California, through Nevada, Utah, Wyoming, and into Nebraska. We saw alot of truck stops and noticed that they were doing that for diesel and regular. I thought it was ridiculous.
They were charging more for credit or debit. They didn't hold the funds for more than a day or two, but the fact that it wasn't immediate was irritating. It's also irritating that some places didn't have a 'debit' option, only 'credit'. Our card can be used either way, but debit is immediate and credit is not. There should always be both options.
Maybe our banks differ in their policies. Maybe you have been a better customer so they don't hold your funds. Either way, I'm glad you don't have to go through what we had to endure.
Thanks!!
@jessigirl116 (848)
• United States
8 Sep 08
I agree, with small kids, it's much more convenient. As long as you know all the rules, that is.
Thanks!!
@twallace (2675)
• United States
9 Sep 08
Using your credit card is a good thing but when there are extra fees attached to it for gas purchase its not all that good. This becomes a problem and think of all of the people that don't know about the extra fees that they are being charge for using the pay at the pump.
This means that now you have to keep cash on you for just paying for gas alone. I read that once before, a while back there was a discussion on this and the extra cents that people paid for using there cards. Which i think is wrong. But now you have to just go in to keep from being charged extra. I don't think that it's far at all. Now the best thing is to just keep extra cash on you to not have to deal with that at all. Have a good one.
@jessigirl116 (848)
• United States
10 Sep 08
It's ridiculous that we have to stop at the ATM so we can have cash to pay for gas! What's the point of having a card? Do these companies know how much sense they DON'T make?
Thanks!!
@reoko10 (578)
• United States
8 Sep 08
I love to use my card I use it as much as I can because I am not carrying money around so if my card is lost or stolen I can just trun it off, but when I need to get gas I always make sure I have cash, I alway go in side and pay it is just easer.
1 person likes this
@jessigirl116 (848)
• United States
8 Sep 08
That is a good choice. Next time we travel, we are taking extra cash for those places.
Thanks.
@KrauseHome (36448)
• United States
19 Sep 08
Well, we bank with Boeing Employee Credit Union here in the Seattle area, so we do not ever have to worry about our Bank charging a Fee like this, and I always see the amount coming out of our Card right away when we use it at the pumps, so this is never an issue for us. As for the places that charge a Fee for using their card... we have seen this for an fee like with AMPM stations, so we refuse to use these stations, and actually can find gas about the same price somewhere else that does not charge. I feel we spend enough as it is on things like Gas to give them anything extra.
@highflyingxangel (9225)
• United States
9 Sep 08
I don't think it's a bad thing if used wisely. Obviously, you should be careful about how many times you use your card at the pump. I mean, that's just being a responsible person. If you don't pay attention to your account, I only see that as your fault, no one elses.
Obviously, it can save you money if you are smart about using your card. If you do not enter the store, you're not going to buy extra items so you're actually going to save money and not spend it. I don't see anything bad about it really but maybe that is just me.
@jessigirl116 (848)
• United States
10 Sep 08
We are always careful, we weren't overdrawn. But we didn't know why our balance kept bouncing around. We didn't know about the charges. It all worked out and we know about all the charges.
Thanks!!
@bdugas (3578)
• United States
8 Sep 08
I understand what you mean by funds being with held over the amount spent. I eat at a resturant here and the meal was $7.something and the charge shows $15. on my online banking, I called the bank and ask why the difference and was told it would change when they turned in the real amount. That the $15. was just a rounded off figure they had with them till they get the real total. Now why they can't just put the real total in as you spend it I dont' understand. But is in a day you make several purchases like this it can give the bank a over draft on your account. I don't think this is right but nothing we can do about it. I usually use cash when I buy gas, but today I used my card. There are all kinds of charges when you use your card, I never have the same amount as the bank, mainly because of the little fees they charge. What pisses me off if I go in to pay a bill in person I get charged for coming to the place. But if I use my card then I get a $3. charge for using it. I would think that they would just be happy to get paid.
@jessigirl116 (848)
• United States
8 Sep 08
Not only that, but as soon as you are overdrawn at your bank, they charge you for that, too! For a mistake you did NOT make. But, now it's in your account as you being overdrawn. Even if they fix it and you don't actually get charged, it's on your record. Right? I think it is, but I'm not 100%. Now credit companies see the black mark on your credit.
When is technology going to catch up with itself?
Thanks!!
@moneyandgc (3428)
• United States
8 Sep 08
There is a 10 cent per gallon charge to use a card at the gas stations in New Jersey. It is illegal to pump your won gas there (which I HATE) so it is all paid outside anyway. The only options are whether or not you pay the attendant with a card or cash.
We get gas on base and there aren't extra charges, plus you can pump your own gas.
@jessigirl116 (848)
• United States
10 Sep 08
Apparently, our military can be trusted with the responsibility of pumping your own gas. They always have the best prices when you're on base.
Thanks!!
@kezabelle (2974)
•
8 Sep 08
I dont know I mean if I dont want to buy anything else I wont wether I enter the shop or not so I dont think it makes much difference, its wonderful with children no need to leave them nor any need to drag them across a dangerous forecourt
@jessigirl116 (848)
• United States
10 Sep 08
My kids are older, but it wasn't that long ago when I had to get all 3 of them out of the car, fight them in the store, then fight them to get back in the car. If mine were still small, I'd prefer to pay outside.
@kenzie45230 (3560)
• United States
8 Sep 08
Our TV news consumer reporter reported about this a last year. There is one gas station/convenience store chain that - back then - would put a hold on your card for as much as $50 when your transaction was authorized. And it might be 2-3 days before the hold was lifed. Now with the gas prices higher, the hold might even be higher.
Years ago, lots of businesses used to charge more if you used credit cards. It actually makes sense. It costs them money when you use them.
@sabatisha (2)
• United States
8 Sep 08
It is much easier and convenient for people on the go to pay at the pump. No long lines, no kids nagging you to buy something out of the store. I personally believe its good.
@jessigirl116 (848)
• United States
10 Sep 08
It's convenient, I agree. But, come on. Should there really be a difference in charges between paying outside and paying inside?
@neeens (61)
• United States
8 Sep 08
Maybe that's just in states like that? I've NEVER had a problem with the 'pay at pump'. Neither have any of my friends or family... it's very common for people to use it these days..Most of the time people will go in if they need change or want to grab some snacks (from what I've seen) I'm in CA and for us.. if we use cash, there's no extra charge, but with credit/debit cards.. they take away a .45 transaction fee just once... never have I seen anywhere here that made you pay 6cents extra for each gallon.
It's actually pretty convenient for me and I use it almost all the time.
@jessigirl116 (848)
• United States
10 Sep 08
Drive through Wyoming sometime. In Oregon we don't have that .06 thing, just the fee for using the card. They only do that with diesel. Cash vs. the card.
