Credit Card Fraud Protection Stops Gas From Flowing at the Pump
June 18, 2007
According to AP report, rules to prevent credit card fraud at the nation's pumps are confusing consumers who just want a full tank of gas as the price of gasoline continues to rise. Caps on transaction amounts are limiting some drivers of gas-guzzling vehicles.
Credit card companies say the policies, which aren't new, are designed to ensure that merchants and consumers are protected from fraudulent transactions that could occur at a gas pump. When a customer uses their credit card at a cardholder-activated terminal, such as a gas pump, the transaction is authorized without knowing the final bill of sale.
But credit card companies have established a protective layer by setting caps on how much gas a consumer can pump at any one given time. Typically, for MasterCard customers, the cap is $75. Visa and Discover users have a $50 pay-at-the-pump limit. Transaction limits vary for corporate card holders and American Express users.
Not all gas stations have to abide by the cap. And there are no limits if a customer goes inside and pays with their credit card at the counter. The caps went unnoticed when gasoline prices were low.