Have you ever been in a situation where you needed cash but didn’t have your wallet on you? If you have a debit card, you can usually get help from the bank machine. However, depending on your bank and debit card, some holds may be placed on your account when trying to withdraw cash.
Here are some of the common ones.
1. Gas Pumps Holds.
If you’ve ever tried to get cash from a gas pump, you may have noticed a hold placed on your account for a much higher amount than the actual purchase. This is because gas pumps can be notoriously unreliable, and some banks will put a hold on your account to make sure that you don’t get overcharged. If you find that you’ve been charged more than what you actually spent, contact your bank to get gas pump holds refunded.
2. ATM Holds.
ATM holds are usually placed on your account when you withdraw from an ATM that is not affiliated with your bank. These holds can vary in amount, but they are typically for the full amount of your withdrawal. If you need cash from an ATM and don’t have time to go to your bank, check the fee schedule so that you know how much the hold will be.
3. Card Holds.
Card holds are placed on your account when you use your debit card to purchase. The amount of the hold is usually the same as the purchase amount, but some banks may place a higher hold if the merchant is considered high risk (such as a gas station or hotel). If you’re worried about a high hold being placed on your account, you can always ask the merchant ahead of time how much their card holds are for.
4. Pre-Authorized Holds.
Pre-authorized holds are placed on your account when you give a company permission to charge your card for a future purchase. For example, if you book a hotel room online, the hotel may place a pre-authorized hold on your account for the amount of the room plus taxes and fees. These holds are usually released within a few days after your purchase is made, but it’s always best to check with the merchant ahead of time to find out their policy.
5. Recurring Holds.
Recurring holds are placed on your account when you sign up for a service that charges your card regularly. For example, if you have a gym membership charged monthly, the gym may place a recurring hold on your account for the amount of the monthly fee. These holds can be helpful if you need to budget for a recurring expense, but they can also be a pain if you forget about them and get surprises on your statement.
Conclusion
There are a variety of holds that can be placed on your debit card, but the most common ones are for gas pumps, ATMs, and card purchases. If you’re ever unsure about a hold, it’s always best to ask the merchant or your bank ahead of time.
