Paying for petrol at the pump can plunge you into the red

theguardian.com:

At a Sainsbury’s petrol station I opted to pay at the pump. As usual, a whopping £100 was charged to my card before I began filling up. The actual bill came to £18.37. A week later, the £100 has still not been refunded. I need the money to pay for a funeral this month, and I don’t need this extra burden. SJ, Dursley, Gloucestershire

Many people don’t know – and why should they, given that there are no prominent warnings on forecourts – that, since 2021, a new scheme has been introduced in the UK for drivers who pay for petrol at the pump.

Up to £120 is “pre-authorised” on their debit or credit card to ensure they can pay for their fuel, even if that cost is only a tenner. “Pre-authorised” means the money is ring-fenced and unavailable to spend until the transaction has completed. Before 2021, just a £1 deposit was usually taken.

For hard-up customers, even a few hours without £100 can plunge them into overdraft. But the industry standard for the release of “pre-authorised” sums is, worryingly, seven days. Sainsbury’s says they should be returned instantaneously, but, if there is a delay, customers must take it up with their bank.

According to Barclays, retailers demanded the change to prevent card fraud, while trade body UK Finance says it was an initiative of retailers and the payment industry to improve customer service.

UK Finance explains that, under the old system, unwitting customers were being pushed into the red since the fuel cost was often debited days after the £1 deposit was taken.

Under the new system, payments are supposed to be made within minutes. Barclays tells me that Sainsbury’s did not process your transaction until the next day, which caused the delay, but says you were refunded the day you contacted