Roadshow: Irritating credit card limits are based on fear of fraud

Q With the expectation that gas prices will go higher, my complaint is credit card limits of $60 or $75 at the pump. With full-size cars, I am always a gallon or so short of filling up, which I like to do to keep track of mileage to gauge how my vehicles are running. And with our trucks (we have horses), it takes two or sometimes three iterations of swiping to fill up. Why do they do this when seemingly everyone will hit these limits at current prices? Call me aggravated.

Dave Biasotti
Gilroy
A Limits are set by the credit card companies and there is a reason - fraud. Gas station folks say they almost always eat fraud losses when a stolen card is used, something more likely to happen at a station where there may be no face-to-face encounter with a clerk. Also, if station owners do not abide by these limits, the penalties can be stiff. The limit can range from $60 to $75.

Q It used to be that gas would flow quickly out of the pump until the last 10 cents of my transaction. Then it would trickle out until done. That number started to gradually increase over the past few years to the point that at some pumps, the gas slows down 50 cents before my transaction is done. It really ticks me off. It sometimes takes just as long for that last 50 cents to slowly trickle out as it did for the previous $20. I think it's a big scam to make money off customers not willing to wait around over a measly 10, 20 or 50 cents. I

bet others grumble about it as well.

Rhya Gilliam
Newark
A So far, no one has. There is a reason - higher prices. Gas pumps are not capable of going full speed, then shutting off just at the right time. When gas sold for $1 a gallon, it would begin slowing down during the last 15 cents. At $3 a gallon, it begins to slow during the last 45 cents. As fuel gets more expensive, it needs more pennies before stopping. If you use a credit or debit card and want $40 worth of gas and if the dispenser went to $40.01, the bank charges the full $40.01 to the station but $40 to you. So they slow the dispenser.

Q There is a gas station near where I live that has two prices - one if you pay cash and one if you pay by credit card. I thought the state banned this years ago?

Steve Pelovsky

A There is an aggravating loophole. It is legal to offer a discount when motorists pay with cash and another price when paying by credit card.

news source : http://www.mercurynews.com/ci_8182990