A S D A - Pay At Pump Furore

[sunny-dave]

I tend to avoid Pay At Pump (and supermarket petrol) - but sometimes there's no alternative - so beware :

http://www.bbc.co.uk/news/business-44052530

It's only a "pre-authorisation" - which is no problem if you have enough spare on your card (or cash in your bank account) to ride out the hit to your available cash until the £99 is released - but I can see some people who live 'close to the edge' being seriously inconvenienced if the ring-fenced funds aren't released for a couple of days (rather than the few minutes that it should be).

[Baldric]

or even £99

[BagPussAA]

I am not able to use Pay-At-Pump facilities because my bank account does not allow for this kind of pre-authorisation on my card. I am not bothered by it, I would much rather use a proper petrol station where I have to use a kiosk to pay.

[anthro-nerd]

Yeah I've seen this and think it's awful.

[murraymints]

we just drive away from such pumps !

[jourdain2]

Apparently this is happening because of new European Standards. 'Nuff said on that!

Question - what happens to the (OK it's miniscule) interest on the money until it is reimbursed? Very much the thin edge of the wedge - some people could be tipped over the edge of their Credit Limit, with all that entails.

Be nice if the supermarkets just decided to ignore it - not long until we leave the EU and I know for a fact that other countries just ignore directives (France particularly!).

[sunny-dave]

It appears that this is an attempt to 'save people from themselves', by preventing them from the costs involved in an accidental (or indeed deliberate) overlimit or overdraft situation.

Shame no-one from the think tankers (check spelling) who dreamed it up lived close enough to the financial edge to understand the potential consequences.

[youngmafbog]

If you live 'close to the edge' then dont use pay at pump. There is a choice and there are valid reasons it is being done.

Personally I'm happy with it.

Looking closely at the story tis bit is interesting:

//Asked about the £99, Mastercard said: "While some customers may see a request for a higher amount than the fuel they bought - perhaps on their mobile banking app - these funds are not taken from their account. Only the value of the petrol dispensed is withdrawn."

In other words, the money never leaves a consumer's account - only the actual amount they spend is taken.//

So the £99 is NOT taken out your account according to them, it's all about timing of looking at an online application.

This particular lady seems a bit odd and I do wonder if she is afer her 15 mins of fame, statements such as : "I sometimes top up silly amounts like £5 to keep it at full." - Jeez.

[ToraToraTora]

Clearly motoring is far too cheap, poor people can afford personal private transport which is very damaging to the environment. VED + Fuel costs need to increase by at least a factor of 10 and the money raised should be spent on public transport. BTW I count myself as poor and the fact that I can afford 3 bikes and 2 cars serves to underline my point

[ToraToraTora]

Bazinga!

[sunny-dave]

The problem is, ymb, that the £99 is ring-fenced and cannot be used for other purchases until the pre-authorisation is removed.

In theory this is virtually instantaneous once the actual cost of the fuel is debited - in fact it can often take hours or even days to release the ring-fence and this can be a seious issue for some people.

In many Asda garages there is no other option except 'Pay at Pump' (especially out of hours) and other local garages have usually been driven out of business by Asda's loss leading prices.

I agree about the "10 minutes of fame" aspect of the story - but it does also seem a potential problem for some people.

[youngmafbog]

I quite agree TTT although Plod should be using ANPR to even greter effect to get a load of them scrapped. Hotspots like East London, Liverpool, Bradford and Manchester should all be targetted in one big swoop.

Then, as you say fuel duty up by 10 times at least. Save the environment and clear the roads.

[youngmafbog]

//In many Asda garages there is no other option except 'Pay at Pump' (especially out of hours) and other local garages have usually been driven out of business by Asda's loss leading prices. //

Really? Can you name me some places where there is not another station to ASDA within 3 miles?

[youngmafbog]

And where people live, those travelling to an out of town ASDA dont count as they pass others on the way no doubt.

[sunny-dave]

OK - I may be exaggerating a bit (mea culpa) - but after about 10pm that will usually be a TescoMorriBury - which will also be Pay at Pump overnight.

[youngmafbog]

// in fact it can often take hours or even days to release the ring-fence and this can be a seious issue for some people. //

With faster payments etc I doubt that this is the case except for a very few 'odd' transactions that fell out the automated system.

[mushroom25]

near where I live there's an ASDA and Sainsbury's within a few hundred yards of each other. ASDA is 100% pay at pump. Sainsbury's fuel kiosk opens at 8am and closes at 8pm; outside those hours the only alternative is pay at pump, at either station. most private fuel outlets (in town or about) closed years ago.

[Spicerack]

I was surprised to find out last year that as long as you had £1 in your account you could put £20 worth(or whatever) of fuel in your car. As long as you had the money in your account within 3 days.
This person did this regularly. I'll have to warn him.

[sunny-dave]

It's not so rare, ymb.

I had a perfectly harmless transaction with a 'well known and respected store' (hello CostCo) which left a ring fence for £250 on my credit card for a week - as well as taking the £249 purchase price on the day of despatch (day 2).

I queried it with my issuer who (basically) said "You'll have to wait until it expires" - CostCo were uninterested in resolving the matter - "We haven't taken the money - so there's no problem".

Indeed it was not an issue for me on a credit card with a decent credit limit, but no fun if it had been on my current account which I run quite tightly.