Costco stole $100 from me

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  • amboy49

    Master
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    5   1   0
    Feb 1, 2013
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    central indiana
    Well, not Costco specifically. However, I purchased $34.63 in gas yesterday. When I got home I decided to make an entry in my checkbook register as I had used my debit card to make the purchase. When I checked my account information via my bank’s web site I was shocked to learn a $100 debit had occurred 23 seconds before the legitimate charge for the gas went through. It seems apparent someone somehow installed a “skimmer” on the gas pump I used. It will be interesting to see If I can successfully press Costco for a refund of the money. In my opinion their lack of security allowed the charge to my account to take place.

    I have been cautioned in the past about using my debit card to make purchases due to this very thing happening. My intent is now to change my habit of paying with my debit card and will either pay in cash or with my credit card.
     

    hoosierdoc

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    Apr 27, 2011
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    hrm... you sure this wasn't a temp hold placed on the card? I am guessing it's a pre-auth and will fall off in a few days

    Q: Why does Costco "hold" my funds if I use a debit card?
    [FONT=&quot]A:[/FONT][FONT=&quot] When fuel is purchased with a PIN debit card or Visa card, Costco requests a "pre-authorization" from the card issuer before beginning the fueling process. This is a temporary hold that assures Costco will be paid for fuel dispensed. The "pre-authorized" amount is approved by the card issuer and may be up to $100. After fuel is dispensed, Costco IMMEDIATELY sends a "completion transaction" message to the card issuer with the actual purchase amount. It is the responsibility of the card issuer to remove the "pre-authorization" amount promptly. Please call the bank customer service number on the back of your card if you have questions or concerns.[/FONT]
     

    dan1001s

    Plinker
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    Jun 24, 2020
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    Fort Wayne
    Sorry to hear that but you certainly gave me a good tip. Guess it’s credit card from now on for me as well. Hope Costco man’s up.
     

    DoggyDaddy

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    hrm... you sure this wasn't a temp hold placed on the card? I am guessing it's a pre-auth and will fall off in a few days

    ^^^This^^^ And it's not just Costco that does it. I always run my debit like a credit card and skip PIN entry and I think that eliminates the pre-authorization hold.
     

    amboy49

    Master
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    Feb 1, 2013
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    hrm... you sure this wasn't a temp hold placed on the card? I am guessing it's a pre-auth and will fall off in a few days


    Disclaimer: Hoosierdoc correctly identified what occurred. Unable to sleep, I rechecked my account at 0330 and the $100 debit amount was gone ! I’m happy that my card was not compromised, but I almost feel like I’m owed the $100 for the anguish of this issue. I had stopped my debit card use ability and was prepared to call Costco, my bank, and half the known world to resolve this “problem.”

    Special thanks to Hoosierdoc although why he was awake at that hour of the night/morning !
     

    MRockwell

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    Oct 4, 2010
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    This happened to me a couple years ago. Bought three gallons of AVGas at the airport, around $15. Had a $150 hold put on my debit card. Took a couple days for the hold to go away. Learned quick not to use debit for fuel purchases. When I used to buy diesel at Speedway, they would always put a $1 hold on the card. It can be annoying, but at least it's better than $150.
     

    churchmouse

    I still care....Really
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    Dec 7, 2011
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    ^^^This^^^ And it's not just Costco that does it. I always run my debit like a credit card and skip PIN entry and I think that eliminates the pre-authorization hold.

    I never purchase on my debit without running it as a credit card if at all possible. Never use your pin at a gas pump. Never.
     

    DoggyDaddy

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    What isn’t clear to me is the purpose of the practice. If my debit card wasn’t good for $34.63 how was it gonna be good for $100 ? ! !

    Think of it this way... Until you're finished pumping, they don't know how much you're going to pump. They're making sure they've got you covered. In that, it's not like a regular purchase where the amount is known beforehand.
     

    NHT3

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    I think you will also find that if you have a vehicle that, heaven forbid, would take 100 dollars worth of gas the pump will shut down at it's preset $100 limit. Pretty sure it's not just Costco it's common practice at every gas station. Save your rage for something worth raging about, or as some say, pick your battles. :)

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    WebSnyper

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    What isn’t clear to me is the purpose of the practice. If my debit card wasn’t good for $34.63 how was it gonna be good for $100 ? ! !

    You indicated the $100 was before the other charge. As others have said that was in order to check your account for funds and hold the max amount it was going to let you pump anyway as NHT3 indicated.

    The purpose, normally, is to make sure your card is good. Most places I go to put a $1 hold on versus more. Chances are if you are approved for a $1 or more, your are good for more.

    Except most places don't only do the $1 for debit/PIN transactions as there are folks out there who have just a couple of bucks in the account or have stolen the card, etc and then will pump significant $ in gas. Credit card on the other hand will typically allow one to go over credit limit , etc so the $1 is an easy check on the credit card and usually as valid as they can get there from a check of the card validity anyway.
     

    Lilboog82

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    Always use credit card! Always...better fraud protection and it’s not your actual money gone. Only time I use debit card is at the inside ATM at my bank.
     

    Route 45

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    Dec 5, 2015
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    Never use a debit card for ANY purchase. A debit card is a direct link to YOUR actual money. The only thing a debit card should be used for is ATM withdrawals.

    Always use cash or a credit card.

    If someone hits my Capital One Visa with a fraudulent charge, it ain't my money. It's Samuel L. Jackson's money. :):
     

    KittySlayer

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    In addition to gas stations, hotels do funky pre-post with cards too.

    Never use a debit card for ANY purchase. A debit card is a direct link to YOUR actual money. The only thing a debit card should be used for is ATM withdrawals.

    Always use cash or a credit card.

    If someone hits my Capital One Visa with a fraudulent charge, it ain't my money. It's Samuel L. Jackson's money. :):

    Always a Credit Card. While waiting for resolution of a dispute it is their money, not yours in limbo.
     

    Hoosierdood

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    Disclaimer: Hoosierdoc correctly identified what occurred. Unable to sleep, I rechecked my account at 0330 and the $100 debit amount was gone ! I’m happy that my card was not compromised, but I almost feel like I’m owed the $100 for the anguish of this issue. I had stopped my debit card use ability and was prepared to call Costco, my bank, and half the known world to resolve this “problem.”

    Special thanks to Hoosierdoc although why he was awake at that hour of the night/morning !

    If you read the sticker that is on EVERY single pump that I have used, you will see that they may preauthorize a certain amount when using your card at the pump. I have never seen a pump that didn't have that sticker. Look for it next time. They are just doing what they told you they were going to do.
     

    Cameramonkey

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    Yep. they pre auth ALL charges for the first $100. I have my work amex in my iphone wallet, so it pops an alert every time I charge my card. Sure enough, the times I have to buy gas for a company vehicle I get an instant $100 charge notice on my phone.

    If you insist on using a debit for gas, go inside and prepay for $X in gas. They will put a hold on the card for exactly what you are going to spend.
     

    gregkl

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    Seems like quite a few just in this thread allude to debit card usage.

    I have never even had a debit card. Why use a debit card instead of a credit card? What am I missing out on?
     
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