When paying for gas at the pump with a credit or debit card, most gas stations will pre-authorize the card for a certain dollar amount as a hold on the available funds. This ensures the customer has enough money available to pay for the gas they pump. But how long can the gas station hold onto that pre-authorization amount if you end up not spending that much?
What is a gas station pre-authorization hold?
When you insert your payment card at a gas pump, the station will send an pre-authorization request to your bank or card issuer. This “holds” the requested amount of funds so they will be available to complete the sale after you pump the gas. The hold amount varies by station but is often $75-150.
The hold simply reserves the funds temporarily – no actual money is taken from your account yet. Once you finish fueling, the final amount is sent for settlement and the hold is released. Any excess funds above what you spent are freed up and available again in your account.
Why do gas stations do pre-authorizations?
Pre-authorizations protect the gas station from pump-and-run theft. If a customer leaves without paying after pumping, the station can submit the sale and collect what’s owed from the held funds. The customer’s card issuer absorbs any losses from insufficient funds instead of the business.
Without pre-auths, gas stations would have to require prepayment inside for every customer before pumping. Pre-authorizations allow self-serve pumps to function without excessive risk.
How long can the hold last?
The pre-authorization hold remains in effect until the sale settles or the station releases it – whichever happens first. Usually the pending hold drops off within 1-3 business days after fueling if the merchant doesn’t finalize the transaction right away.
But there is no set time limit in card network rules on how long a gas station can maintain an authorization. Most will release it if the customer doesn’t return to make a purchase within 1-15 days. However, stations are technically allowed to hold pre-auths indefinitely if they wish.
Factors that determine hold duration
How long a specific gas station keeps authorizations depends on their payment processing setup and policies. Some aspects that can affect hold duration include:
- Batching schedule – How often they submit transactions to their processor for settlement each day.
- Closing time – Whether transactions are forced to settle overnight when they close.
- Hold policies – Internal procedures on clearing inactive authorizations.
- System capabilities – Some POS systems have better options for managing holds.
Merchants have leeway to decide what works best for their operations. Stations that batch frequently and settle each night tend to release unused pre-auths sooner.
What if the station never settles the transaction?
If a gas station doesn’t finalize your sale but also fails to manually release the hold, the pre-authorization could remain outstanding indefinitely. This ties up the funds and makes them unavailable for other uses. Fortunately there are options to resolve this:
Wait it out
Most banks and card issuers will automatically drop gas pre-auth holds after 30 days even if the merchant doesn’t. So the funds will eventually be freed up after a month passes in most cases.
Dispute the charge
If the 30 day mark passes and your bank hasn’t released the hold, you can dispute it as an invalid transaction. This forces the issuer to remove the pre-authorization and make the money available again.
Call the station
Contacting the gas station’s manager explains the situation and requests they manually release the hold. They can easily do this by voiding the authorization through their credit card terminal.
Use a different card
If you need to buy gas again while waiting out a hold, pay with another card. This avoids tying up funds on multiple cards unnecessarily.
Ways to minimize long gas holds
While most stations only hold onto pre-authorizations for a reasonable period, you can take steps to reduce the likelihood of experiencing an excessively long gas station hold:
- Pay inside with cash when possible.
- Use a lower limit card that covers your typical fuel expense.
- Ask the attendant what their hold policy is before using a pump.
- Go to stations you know settle quickly based on past purchases.
- Avoid using debit cards – credit cards cannot freeze funds for more than 30 days.
The bottom line
Gas stations can technically hold authorizations for as long as they want, but most release them within 3-15 days. If a hold remains longer, you can dispute the charge, contact the merchant, or just wait up to 30 days for your bank to remove it automatically.
While inconvenient, pre-authorizations are a necessary part of the self-serve gas station business model. Being aware of how long stations in your area tend to hold them can help avoid problems.
Frequently Asked Questions
Can a gas station charge more than the pump total?
No, the station can only charge the exact amount the pump authorizes after fueling completes. The initial pre-authorization is just a hold, not an actual charge. If your receipt total is lower than the hold, the excess funds are released by your bank.
Do gas stations pre-authorize a certain amount per gallon?
No, the pre-authorization amount is not calculated based on gallons pumped. Stations pre-authorize a fixed dollar amount as determined by their policies, often $75-$150. This hold is the same regardless of how much gas you buy.
Can a gas station hold more than one pre-authorization?
Yes, if you leave and return to purchase gas again during the period the first hold is still active, some stations will pre-authorize your card again rather than use the initial hold. Take care when fueling multiple times to avoid tying up more funds than necessary.
Do all gas stations do pre-authorizations?
Nearly every gas station does pre-authorizations to protect against drive-offs. However, some small independent stations may still collect payment upfront in cash before pumping. And a very small number may operate on a trust system without authorizations.
What if I don’t have enough for the pre-authorization amount?
If your account balance is lower than the amount the gas station expects to pre-authorize, your card will be declined at the pump. You will need to pay cash inside for your purchase instead.
Key Takeaways
- Gas stations can hold pre-authorizations indefinitely but usually release after 1-15 days.
- Banks free up the pending hold automatically after 30 days in most cases.
- Call the station, dispute the charge, or just wait it out to resolve excessively long holds.
- Pay with cash or lower limit cards whenever possible to reduce hold problems.
| Gas station | Typical pre-authorization amount | Hold duration |
|---|---|---|
| Shell | $100 | 3-5 days |
| Chevron | $125 | 7-10 days |
| BP | $75 | 2-4 days |