Beware Pre-authorization When Using Debit Cards

When using your debit card, you have to be careful and ensure you have sufficient funds in your account because some places/retailers may add a pre-authorization charge that will take a couple days to fall off. If you don't have sufficient funds you could be charged with an overdraft.

For example - I pumped gas with my debit card for $50 something dollars and when I got home, I saw a pending pre-authorization charge of $100. I was so shocked, I contacted my debit card and was told, it will come off in a few days from the gas station to prevent a pre-authoriziation charge, next time to press CREDIT at the pump, instead of debit.

Also, today I went online shopping with my debit card and the retailer placed a pre-authorization charge of $20 in addition to my transaction amount. the pre-authorization charge will fall off in 3-5 business days. When possible, I'd recommend using a credit card.