ANCHOR LEAD IN:
WHEN IT COMES TIME TO PAY FOR GAS, IF YOU'RE LIKE MOST PEOPLE NOW-A-DAYS, YOU REACH INTO YOUR WALLET, PULL OUT A DEBIT CARD, AND SWIPE. IT'S CONVENIENT AND FAST, BUT CONSUMER ADVOCATES ARE WARNING THAT IT COULD LEAVE YOU WITH MAJOR FINANCIAL HEADACHES. ________ HAS THIS IMPORTANT HEADS UP.

TRACK ONE Length: 04
USING A DEBIT CARD CAN GET YOU IN AND OUT OF THE GAS STATION IN NO TIME.

SOT
NO KEY
"It saves me the trip in and out of the store, and I get a receipt. It's more convenient."

TRACK TWO Length: 03
BUT THAT ADDED CONVENIENCE MAY NOT BE WORTH IT.

SOT
NO KEY
"There is a big downside."

TRACK THREE Length: 13
CONSUMER ADVOCATE LINDA SHERRY SAYS WHEN YOU PAY WITH A DEBIT CARD, STATIONS OFTEN ASK THE BANK TO PLACE A FREEZE OR BLOCK ON YOUR ACCOUNT FOR 5, 10 DOLLARS... SOMETIMES A LOT MORE ...
AND THAT'S ON TOP OF THE COST OF YOUR GAS.

SOT
KEY @ : 24 Linda Sherry, Consumer Action
"You look at your account, you might have $27 worth of gas that you bought and you'll look beside it and you'll see a $75 transaction."

TRACK FOUR Length: 05
AND WITH ALL THAT EXTRA CASH UNAVAILABLE, IT MAY BE YOUR BANK ACCOUNT THAT'S RUNNING ON EMPTY...

SOT
KEY @ : 39 Linda Sherry, Consumer Action
"This could put them into the ability to bounce a check and if it caused a bunch of checks to bounce, you could be out a $100."

TRACK FIVE Length: 11
THERE IS NO LAW LIMITING THE AMOUNT OF TIME A "HOLD" CAN LAST...
SHERRY SAYS IN MOST CASES, THE MONEY IS UNBLOCKED THE SAME DAY...ONCE THE TRANSACTION IS PROCESSED... BUT IT CAN TAKE SEVERAL DAYS...

SOT
KEY @ : 54 Linda Sherry, Consumer Action
"You'll never hear or see a sign at a station that tells you this is happening."

SOT
NO KEY
"No, I didn't know that. I didn't know they freeze."

SOT
NO KEY
"I'm surprised. I thought it was as simple and convenient as using cash."

TRACK SIX Length: 09
SO, WHY THE BLOCK? GAS COMPANIES SAY WHEN YOU USE A DEBIT CARD, THEY HAVE NO IDEA HOW MUCH YOU'RE GOING TO PUMP...
SO TO PROTECT THEMSELVES THEY USE AN ESTIMATE.

SOT
NO KEY
"I don't really mind if I'm going to get it back."

SOT
NO KEY
"That's not fair."

ANCHOR TAG:
HOTELS AND RENTAL CAR COMPANIES USE SIMILAR FREEZES ... SHERRY SAYS THE DIFFERENCE HERE IS THAT WHILE MOST PEOPLE KNOW ABOUT HOTEL FREEZES, ALMOST NO ONE KNOWS ABOUT GAS STATION BLOCKS.

SOURCE INFORMATION

Linda Sherry
Consumer Action
227 6th Street, NE
Washington, DC
202-544-3088
web: www.consumer-action.org

Linda Sherry is the editorial director of Consumer Action, a non-profit consumer advocacy group. She is responsible for publications that help educate consumers about a variety of issues. Sherry has been with the organization since 1994

Karyn Leonardi-Cattolica
Shell Oil Products U.S.
Media Relations Advisor
External Affairs & Issues Management
910 Louisiana Street, Houston, Texas 77002 USA
Office: U 713 241 1578
"It's important that people realize this focuses on debit and PIN cards only because the process for credit card payment is different. Second, the process for paying with a debit or PIN card at the pump differs from paying with a debit or PIN card inside a station.
When a customer begins a debit or PIN transaction at a gasoline station prior to fueling, the point of sale (POS) system submits an electronic verification request to the customer's bank to ensure adequate funds exist to pay for the gasoline. At that point, the customer's bank places a hold on the funds to ensure payment will be made for the fuel, which is standard banking practice. At the completion of the transaction, the POS system again submits an electronic verification of the actual sale amount to the customer's bank. The bank then will release the pre-authorization amount according to its hold policy.

Here is a description of how the inside/outside payment processes differ:
> PIN/Debit Sales Inside Station
Based on the amount of gasoline or merchandise the customer requests, the attendant will obtain an authorization for the requested amount using the POS system. The customer is then given their merchandise or the pump is activated up to the amount of fuel requested. Upon completion of the sale, the actual amount of the transaction is entered in the POS system. Once the sale is complete, the customer's bank will release the pre-authorization amount according to its hold policy.
> PIN/Debit Sales At The Pump
If the customer begins the payment transaction at the pump, a standard pre-authorization amount has been pre-set at the pump by Shell. This amount may differ by market and is based on customer needs and area issues. Once the sale is complete, the customer's bank will release the pre-authorization amount according to its hold policy."

Scott Dean-British Petroleum
630-821-3212

"The vast majority of our pumps are not yet equipped for PIN-based debit. We do accept debit cards. When you use your debit card at a BP franchise, we attempt to determine if the customer has sufficient funds and that the card is active. The EFT network contacts the bank and says your customer wants to take out say $20 worth of gas But the amount of the purchase is not known when you first ask for authorization so it has to be estimated. It varies from place to place.
We typically will estimate $65 dollars. "
"The EFT and banks have the ability to clear those almost immediately...the gas station's part is limited to verifying the card is active, getting the authorization and then reporting back to the EFT network that the transaction is complete with the actual real amount of the purchase. We do that almost immediately. What we've learned is that where this tends to be the biggest issue is with smaller banks and credit unions because they are not as able as larger banks to handle these actions...so that's where batch transactions come into play and that can take several hours or a few days. "