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Gas Stations

Do Gas Stations Allow You To Overdraft? (Policy, Fee, Pre-Auth Charge)

Overdraft at gas stations: Overdrawing at the gas station is when you use your debit card to buy gas but do not have enough money in your account to cover the purchase.

This can happen if you forget to check your account balance before buying gas or if the price of gas has gone up since you last checked.

If you overdraw at the gas station, you may be charged an overdraft fee by your bank.

It’s important to be aware of your account balance before making any purchases, especially if you are using a debit card.

Overdraft fees can add up quickly and can be expensive, so it’s best to avoid them if possible.

If you do need to use an overdraft, try to keep the amount small and pay it back as soon as possible to avoid further fees.

But, do gas stations let you overdraw? You might probably be wondering if it is possible to overdraw when using a debit card at the gas station.

Keep on reading to find out if it is possible to do so and what you can do to avoid it, how much it will cost you, as well as some tips on what to do if you accidentally overdraw.

Do Gas Stations Allow You To Overdraft In 2022?

Yes, as of 2022, gas stations do let you overdraft when using your debit card. However, it highly depends on whether the service is enabled or not for your checking account.

To know for sure, you need to contact your bank or credit union and ask about their policy on debit card overdrafts at gas stations.

For example, some banks may allow you to overdraft up to a certain dollar amount while others may not allow any at all.

In addition, keep in mind that even if your bank or credit union does allow you to overdraft when using your debit card at the gas station, they will still likely charge you an overdraft fee.

So, while you may be able to get away with it once in a while, it’s definitely not something that you want to make a habit of doing.

LIST

Here’s a list of all gas stations that let you overdraft at the pump –

  1. Sunoco
  2. Shell
  3. Speedway
  4. 7-Eleven
  5. 76
  6. Amoco
  7. BP
  8. Exxon
  9. Mobil
  10. ExxonMobil
  11. Wawa
  12. Royal Farms
  13. Kum & Go
  14. Cumberland Farms
  15. Valero
  16. RaceTrac
  17. QuikTrip
  18. Kwik Trip
  19. RaceWay
  20. Safeway
  21. Costco

These are the 20 gas station chains that allow you to overdraft your bank account on fuel purchases when you use your PIN debit card to pay at the pump.

Please note that some stations may have specific policies and also, to be able to overdraw, the overdraft feature must be activated from your end.

How Can You Overdraft At Gas Stations?

If you want to know how to overdraft at gas stations then you need to contact your bank or credit union.

They will be able to tell you whether their service is enabled for your account and, if so, what the limit is.

As we mentioned before, some banks may allow you to overdraft up to a certain dollar amount while others may not allow any at all.

However, these are the steps generally involved in how to overdraft your account at gas stations:

1. Find & visit a gas station

The first step is to find and visit a gas station. This shouldn’t be too difficult since there are plenty of them around.

2. Insert your debit card into the machine

Once you’re at the gas station, go ahead and insert your debit card into the machine.

3. Choose the amount of gas you want to pump

Next, you’ll need to choose how much gas you want to pump. For example, if you want to fill up your tank, you would select “Full.”

4. Enter your PIN when prompted

After selecting the amount of gas you want, you’ll be prompted to enter your PIN. So go ahead and do that.

5. Complete the transaction

Once you’ve entered your PIN, the transaction will be processed and you’ll be able to pump your gas.

Now, an overdraft will occur if you don’t have enough money in your account to cover the cost of the gas.

For example, let’s say you try to pump $50 worth of gas but you only have $40 in your account. In this case, the transaction would be declined and you wouldn’t be able to get any gas.

But, if overdraft protection is not enabled & your card provider allows you to overdraw, then the transaction will go through and you’ll be able to pump your gas.

However, as we mentioned before, you will likely be charged an overdraft fee if this happens.

What happens after you overdraft at a gas station?

After you overdraft at a gas station, your account will be negative and you’ll owe your bank or credit union the money plus any applicable fees.

If you don’t pay back what you owe, your account could eventually be closed and sent to collections.

At that point, not only will you still owe the money, but you’ll also have a negative mark on your credit report.

So, as you can see, it’s definitely not something that you want to do on a regular basis.

So, if you’re running low on cash and need to fill up your tank, it’s probably best to just use a credit card instead.

That way, even if you do end up overspending, you won’t have to worry about any overdraft fees.

Overdraft Fees

When you overdraft your checking account at a gas station, your bank or credit union will likely charge you an overdraft fee.

This fee can range anywhere from $10 to $35, depending on the institution.

In addition, if you continue to use your debit card and rack up multiple overdraft fees, your bank or credit union may close your account entirely.

The overdraft fee will be typically low if you have opted for the bank’s overdraft protection service.

So, if you think that you may overdraft your account frequently, it may be worth signing up for this service.

How to avoid incurring an overdraft fee?

There are a few things that you can do in order to avoid incurring an overdraft fee when using your debit card at the gas station.

First, you can always try to pay with cash instead. This way, there’s no risk of accidentally overdrawing your account since you’re not using your debit card.

Second, if you must use your debit card, be sure to keep close track of your account balance and make sure that you have enough money to cover the purchase before swiping your card.

Third, you can also sign up for overdraft protection with your bank or credit union.

This way, if you do accidentally overdraw your account, the funds will be transferred from another account (such as a savings account) to cover the shortfall.

Of course, there may be a fee associated with this service, but it’s usually much less than what you would pay for an overdraft fee.

Finally, some banks and credit unions offer “courtesy” or “buffer” amounts which give you a little bit of leeway when it comes to your account balance.

For example, let’s say that your checking account has a $100 courtesy amount. This means that you can technically spend up to $200 without incurring an overdraft fee (since the first $100 is covered by the courtesy amount).

Of course, this doesn’t mean that you should intentionally spend more than what you have in your account. But, it’s nice to know that you have a little bit of wiggle room just in case.

Pre-Authorization Hold

Gas stations typically place a pre-authorization hold (anywhere between $1 and $175) on your account when you first swipe your debit card in order to make sure that there are sufficient funds available to cover the purchase.

The amount of the pre-authorization charge is typically equal to the estimated cost of gas plus a little extra just in case.

For example, if you’re buying $40 worth of gas, the pre-authorization hold may be for $45.

Once you finish pumping your gas and the final cost is calculated, the extra funds that were held will then be released back into your account.

However, if there are not enough funds available to cover the final cost of gas, then you may be charged an overdraft fee by your bank or credit union.

Therefore, it’s important to keep in mind that even if you have enough money in your account to cover the estimated cost of gas, you may still be charged an overdraft fee if the final cost ends up being more than what was estimated.

To avoid this, it’s best to have a little bit of extra money in your account just in case or pay with cash or a credit card instead.

What happens if I use my debit card and it’s declined?

If your debit card is declined, then you will not be able to purchase gas. However, depending on the reason for the decline, you may still be able to use your card for other purchases.

For example, if you have insufficient funds in your account, then you will need to add more money to your account before using your debit card again.

It also means that your checking account is not enabled for the overdraft service or your card issuer or bank has blocked the card from being used at gas stations.

In this case, you will need to contact your bank or credit union to find out why your card was declined and how you can resolve the issue.

General Bank Overdraft Policies

Generally, banks will allow you to overdraft your account up to a certain dollar amount. For example, some banks may have a limit of $50 while others may be as high as $100.

Once you’ve reached the limit, your card will likely be declined for any further transactions.

In addition, most banks will charge you an overdraft fee for each transaction that causes your account to go into the negative.

This fee is typically around $35 but can vary depending on the bank.

So, if you have a limit of $50 and you make 3 separate transactions that put you over that limit, you could be looking at 3 different fees totaling over $100.

Different banks have different overdraft policies, so it’s always best to check with yours to see what their specific policy is.

For example, if you have a Chase checking account, you can view their current policy here.

Summary

As of 2022, you can overdraft at most gas pumps. So, even with insufficient funds in your account, you can still fill up your car. However, you’ll likely be charged a fee of around $35 for the service. In order to avoid this fee, it’s best to either have enough money in your account or use a different form of payment like cash, credit cards, or checks. Remember that your bank should have already enabled this service for you so that you can buy fuel without enough money in your checking account.