Cut off: Limits on credit cards for gas purchase more prevalent with high prices

HARLINGEN - Some drivers with big sport utility vehicles or large trucks may find it harder to fill up at the gas pump - and it's not because they can't afford to.

Rising gasoline prices have affected how much drivers can dispense when paying with certain credit cards at the pump, said Chris Newton, president of the Texas Petroleum Marketers and Convenience Store Association.

Gas station owners set up the pumps to stop dispensing gas at a certain dollar amount to avoid losing money from credit card companies, Newton said.

At the Murphy USA station at Wal-Mart in San Benito, a notice to credit card users reads: "Due to bankcard requirements, it is necessary to limit your purchase at the pump. MasterCard, Discover - $75. Visa - $50. Limit of three transactions in a 24 hour period."

"It's not the owners of the gas pumps," Newton said. "The owners of the credit card companies say that if you charge more than $75 of gas, they won't accept the charge and won't pay for it. It's called a charge-back."

The cut-off policy has always been in place, Newton said. "It's just become more prevalent now because of the gas prices. Our industry continues to request that credit card companies raise the limits," he said.

A spokesman for MasterCard Worldwide said the company will pay the store up to $75 for fraudulent transactions.

"The policy is designed to ensure that merchants and customers are protected from fraudulent transactions that could occur at a gas pump," MasterCard spokesperson Tristan Jordan said.

Jordan said that when a customer uses a credit or debit card at the pump, an authorization request goes through for $1, because the final price the person will spend isn't known until the customer is finished pumping. That $1 authorization will protect the merchant against certain charge-backs up to $75, Jordan said.

"Some gasoline merchants opt to cap the transaction amount at $75 to avoid any liability for the amount of the transaction exceeding $75," Jordan said.

Jordan said that because there is no clerk to look at a photo identification card with the credit card to compare the customer's photograph and signature, the company has added the extra protection for at-the-pump purchases.

"Customers can simply reswipe their card and conduct a second transaction or they can pay inside at the counter," Jordan said. "Since this is a face-to-face transaction, the $75 limit won't apply."

Visa, Inc. has a similar policy and customers can pay for gasoline at the register inside the store to avoid a limit, according to a written statement from VISA.

VISA, Inc. recently increased their protection amount for convenience store merchants from $50 to $75, according to the statement.

They will also credit the merchant up to $75 if a fraudulent transaction occurs, according to the statement.

"Even if it's $75, that's still not enough," Newton said, "because prices just jumped 20 cents (recently) on the market. Especially down in the Valley where people are driving diesel power pickups, they fill up to $75 really quick."

Armando Ochoa, 54, seemed insulted when he learned of the policy.

"That stinks. They're going to beat us to death. First the gas goes up and then they limit your credit card," said Ochoa, an Army JROTC instructor at Hanna High School in Brownsville.

"You got a boat and a truck and you're out of luck," Ochoa said Thursday while filling up at the Wal-Mart in San Benito.

"I don't think they should tell you how to spend your money. It's your car. You pay the bills, they don't."

Ochoa said he has never been cut off at the pump because he puts in only $25 to $30 at a time.

"But I would never come back here if I was cut off," he added.

Bill Clary drives an F-350, and purchased gas at Wal-Mart in San Benito on Wednesday.

Clary said that at some stations, he can pump only $100 worth of diesel fuel and that will fill three-quarters of his tank.

"It's kind of a pain," Clary said. "But it's no big deal."

Clary said he's been cut off ever since gas prices exceeded $3.

Jim Cooney, who drives a Dodge Caravan, said he's never experienced a gas pump stopping at a certain dollar amount, but tries to fill up when his tank is a quarter full with gas.

The policy doesn't affect a lot of other people who stop the pump before the dollar gauge rolls to an unbearable amount. And there are those like Richard Helmer who won't use credit cards for gas.

"I use cash when I buy gasoline. I don't like to make small purchases with a credit card," said Helmer, a 66-year-old retired Army veteran from San Benito.

Helmer thought about it only a few seconds before adding, "But I guess gas is getting to where it's not a small purchase anymore."

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