Welcome to Money Monday With Jen

Each week Jennifer Constantineau brings a quick Money Monday tip to help you make your money work better for you. This week the topic is something most people do without thinking about twice but that carries a real financial risk that shows up at the worst possible moments.

The Problem With Debit Cards at the Gas Pump

When you use a debit card at the gas pump two things can work against you simultaneously.

The first is the authorization hold. Gas stations often place a temporary hold on your account for an amount larger than what you actually spend. That hold can make funds unavailable for hours or even days while the transaction clears. Finding out your checking account is short when a mortgage payment or rent is due is what Jen accurately describes as a special kind of Monday surprise.

The second risk is card skimmers. Criminals install devices on gas pump card readers that capture your debit card information. Unlike credit card fraud where someone is spending the card company's money a debit card skimmer is stealing access to your actual checking account. The money is yours. It is gone while the bank investigates. You may get it back eventually but eventually is not helpful when bills are due right now.

The Challenge for This Week

The next time you stop for gas take a few seconds before you swipe or insert. Look at the card reader. Check for a broken security seal, any visible damage, or anything that looks loose or unusual around the card reader housing. A device that has been tampered with often shows signs if you look for them.

If tap-to-pay is available use it. Tap-to-pay generates a one-time code for each transaction rather than transmitting your actual card number. It is generally the safest contactless option at the pump because even if someone intercepts the data from a tap transaction they cannot reuse it.

If you use a credit card responsibly and pay it off in full every month consider using it at the gas pump instead of your debit card. The credit card creates a layer between potential fraud and the money in your checking account. If someone steals your credit card information they are spending the bank's money temporarily while the dispute is resolved. Your checking account stays intact.

Turn on transaction alerts through your bank or card app so you receive a notification every time your card is used. Real-time alerts mean you can respond immediately if something looks wrong rather than discovering fraud days later when the damage is larger.

If the pump looks suspicious or tap-to-pay is not available go inside to pay. A few extra minutes is worth avoiding the possibility of having your account drained.

The Bigger Principle

Small habits around how you pay protect the money you are working to save and invest. A compromised debit card at a gas pump should not be what derails a mortgage payment or an emergency fund. Pay attention to how you are paying at the pump.

Subscribe for a new Money Monday tip every week and let's make your money make sense. God bless.

Sources

ConsumerFinancialProtectionBureau.gov
FederalTradeCommission.gov
NationalFoundationForCreditCounseling.org
Investopedia.com
BankRate.com