Why pumping $20 worth of gas could turn into a charge of more than $175 dollars

A surprise at the gas pumps depending on how you pay. An increase in hold charges may cause you to face more overdraft charges. When you fill-up and you swipe your credit or debit card, it's not exactly known how much you will pump.

What's known as a hold charge, or a pre-authorization charge is placed on your card which used to be anywhere from just one dollar, possibly up to $100.00, but those hold charges have now increased and more stations are opting in.

An ABC11 viewer just got done pumping $20.00 worth of gas and thought immediately after someone filled up on her tab when she saw the $176.00 posted to her bank account. She called her bank right away and learned the extra charges were hold fees the station places on the account until the actual amount you pumped is processed.

These hold fees do disappear anywhere from a few hours up to two days, but if you are using a debit card and don't have the extra money on your account you could face more overdraft fees. $125.00 used to be the maximum hold charge but due to rising gas prices, Visa and MasterCard raised it to $175. The exact hold fees are set by individual gas stations.

How to avoid the hold fees is to always use credit as opposed to debit. You can also pay cash, or walk into the station and tell them exactly how much you want to be charged to the card.