If you are a fan of using your debit card to make everyday purchases, you may want to think twice before filling up this July 4th weekend. Consumers have been complaining across the country about excessive holds on debit card transactions at gas stations. For instance, if you purchase $25 in gas using a debit card at the pump, there may be a hold placed on your account for $100 until the transaction clears with the bank. This process could take up to 3 business days to complete, and you will be unable to use the funds for any other purchases during that time.
VISA recently announced a plan to do away with excessive holds on debit cards through the implementation of a "Real Time Clearing" procedure beginning in October. However, in order to avoid overdrawing your bank account or incurring penalty fees, you should pay close attention to these debit card holds in the meantime. Avoid the holds altogether by using a credit card, paying with cash, or taking the time to make your purchase inside the station using a PIN.
