LAS VEGAS (KTNV) — Credit card holds at the gas pump are going up — and it's a lot more than the standard $50.
Customers were already feeling the impact of historically high gas prices, but now they can expect to pay even more. Credit card companies like Visa and Mastercard are adding a hold of $175 when paying at the pump.
The rise in gas prices has caused credit card companies to raise the temporary hold amount. What was once $50 — then $125 — has now risen to $175.
Even if you just spend $30 or $40, you will now see a debit of more than $100 taken from your account if you choose to use a credit or debit card.
It's a decision made by several major credit card companies in what they've said is an effort to reflect the market and ensure retailers get paid, said Jeff Lenard with the National Association of Convenience Stores.
"The holds are required because the banks don't guarantee payment when the transaction final amount is unknown, so a retailer has to set a hold in order to guarantee getting paid," Lenard said, "and that is holding onto their (the customer's) money when they may not have much in there. There's incurring overdraft fees, they're losing access to their money — it's incredibly frustrating for consumers."
Debit and credit cards are used for approximately 80% of gas pump transactions. While these hefty holds can be inconvenient, they are temporary. Banks say the money should be returned to the customer's account within a few days.
Find a list of some of the cheapest gas prices in the Las Vegas area at ktnv.com/cheapgas.
