“Over the river and through the woods to grandmother’s house we go…” I’ve got that song stuck in my head after hearing it being played over and over… (My 2-year-old is obsessed with “A Charlie Brown Thanksgiving” and Chuck and his buddies break out in rousing version of the classic song at the end of the tape.) But, I digress. We’re continuing our “Holiday Travel” series with tips on how to save money while hitting the highways on the way to grandma’s (or whomever’s) this holiday season.
The following are more money saving tips to consider prior to pulling into a gas station:
Leave Your DEBIT Card In Your Wallet
Debit cards are convenient and for the most part cost-effective, but you don’t want to use them to pay for gas. According to the American Bankers Association, when you swipe your debit card at the pump, the bank doesn’t know how much money you’ll be spending until you’ve finished pumping. To compensate for this lack of knowledge some stations ask banks to automatically set aside some of your money. According to financial experts, that amount used to be $20, but with gas prices going up, stations have started asking banks to hold between $50 and $100. What does that mean for your wallet? Basically, it means even if you only put $10 worth of gas in your tank, you could be out $100 until the station sends over its transaction records, which can take up to three days. If you don’t know how much money is in your bank account keep your debit card in your wallet and pay with cash. Oh, and by the way, don’t think that by paying inside with your debit card you’re doing yourself a favor. According to the American Bankers Association, many banks charge their customers between 50 cents and $1 for the privilege of using their debit card in any PIN-based transaction.
Don’t Even Think About Using A Gas Card
Listen to the financial experts: “Gas cards come with more negatives than positives.” Some of the drawbacks include high APRs, starting above 20%; many don’t offer rebates on gas purchases; and most gas cards don’t provide standard protections such as fraud monitoring and zero liability for unauthorized transactions. My former co-worker would whip out his Exxon Visa card every chance he had. (Yes, there are Visas and MasterCards affiliated with a gasoline brands.) The cards do offer lower interest rates and significant rebates, but they also limit your ability to shop around and the rebates may be temporary.
Related Articles:
Holiday Travel: How To Save Money On The Way To Grandma’s House
The Gas Pill-Will It Really Relieve The Pain At The Pump?
Pop Quiz: Test Your Fuel Savings IQ