Why You Should Never Use A Debit Card To Pay At The Pump!

While she knew she only had about $40 in her bank account at the time, she couldn't understand why three small debits from her account (each under $5) had caused her to go over her current balance.

Alas, there in the itemized charges to her account, appeared a debit of $50... followed by a credit of $45 several hours later. The times coincided with the time she was using her debit card to pump $5 of gas.

The catch: Before the $45 was credited back to her account, she had since made two other small debits (each under $5).

In "real" dollars, she was okay and remained within her actual balance. But in "hold" dollars, she was overdrawn.

This whole fiasco cost her $99 in bounced check charges!

This type of "debit card blocking" is a practice also utilized by some car rental agencies and hotels.

The worst part: There's never a sign anywhere telling you that this is happening.

So, the lesson here is... if you wish to use a debit card to pay for gas, your best bet is to pay inside the station. That way, you'll only be charged for the exact amount of gas that you purchased.

Other Little-Known Facts About Debit Cards

1. Your debit card provides direct access to your bank account. For that reason, if your debit card is stolen (or otherwise misused, such as in an online transaction) you have less protection than if your credit card is stolen or misused. Here's what you need to know.

2. Each time you use your debit card like a credit card (where you provide a signature for your purchase, but do not enter your debit card's PIN number) the bank charges a hefty fee from the merchant. Which might also explain why companies like WalMart refused to accept debit cards a few years ago.

3. When using your debit card as a credit card (signature vs PIN number), the transaction will post to your account in a matter of days. However, when using your debit card as a debit card (entering your PIN number), the transaction posts to your account in a matter of minutes.