Gas Stations Can Charge A $175 Hold On Cards Now, With NJ Prices Still High

NEW JERSEY — As New Jerseyans continue to deal with historically high gas prices, Visa and Mastercard added another potential challenge for some drivers. The companies both raised the limit for holds gas stations can place on credit and debit cards from $125 to $175.

Meanwhile, the average gallon of gas in New Jersey cost $4.75 as of Friday — about 3 cents more than the national average, according to AAA. While that's an improvement for consumers over the $5 average the state hit a month ago, the prices remain a far cry even from last year's state average of $3.16 per gallon. Diesel in New Jersey, meanwhile, cost $5.83 per gallon as of Friday.

Most gas stations require those paying with a card to swipe it before they begin pumping gas. Since stations don't necessarily know how much your purchase will cost until it's pumped, they pre-authorize cards by placing a short-term hold on the money in the purchaser's account.

Both Visa and Mastercard set the hold limits to $125 in April, when gas prices nationwide hovered around $125. But the companies raised the hold limits with the national average reaching $5 per gallon last month and now totaling $4.75.

Gas stations can choose how much they'll hold as long as it's within the allowable limits.

The hold typically lasts just hours but can last days in some cases, according to Kelley Blue Book. Debit-card users with low funds carry a risk of overdraft penalties during holds, while the hold prices can temporarily eat into credit limits.

Kelley Blue Book suggests two ways for drivers to work around the holds: pre-pay with cash, or ask the gas station to pre-authorize a smaller transaction — say $30 — before your card gets swiped.