[Update] Please see the updated posting: Are you ready to 'pump' for the weekend?
Finally we are getting to the end of this story, and yes, it has a happy ending for all. First of all, thank you for being comfortable posting your feelings and comments. We want to stay in touch with you and hope you will find this communication tool helpful and convenient.
Will there still be a hold? The credit union has adjusted the programming of these transactions so the 'hold' amount will not exceed the amount of the transaction at any given point in time. We believe this to be reasonable because once you have used the money, it should be set aside whether by hold or by actually processing the transaction.
Who is making money off this 'hold'? No money on 'hold' ever left the credit union. It was simply held against your account balance. The 'hold' never affected the amount of interest, or whether you could earn interest on your checking account.
How can I be sure to get this type of information on a timely basis? Please make sure that your contact information with the credit union is accurate and up-to-date. For instance, if you add or change your e-mail address … let us know. Also, when you post to the blog, ensure that the e-mail address you provide is accurate. Some folks who posted on this topic over the past couple of days used erroneous addresses and that hampered our ability to correspond with them one-on-one.
What happens if I still think there are extra 'holds' on my account, or if I have been charged an NSF fee because of this?You will need to contact the credit union via secure e-mail through the website, secure on-line chat through iTeller (home banking), or via phone at 843-797-8300. Staff will clarify your account and refund any fees assessed because of the $75 pay-at-the-pump hold.
What are we doing now? One thing for sure is we are researching how we can display 'holds' through on-line banking for members to see at their convenience.
Thanks again for letting your voice be heard … you can always talk back with Troy.
Troy, thanks for posting the final uptake on the hold issue. Its good to see the CU implement a programming change as quickly as they did. I still have reservations about the timing of the initial announcement of the hold, 10 days is way too long. Is there someone in the CU that is charged with keeping tabs on the trends in the credit/debit card business? I did a quick search on the web and found many hits about Visa and Mastercard relative to holds for gas purchases from last summer, this is not new. Like they say, forewarned is forearmed.
Anyway, keep up the diablog, its good to have someone on the inside that is willing to interact with the dumb-masses.
“Who is making money off this ‘hold’? No money on ‘hold’ ever left the credit union. It was simply held against your account balance. The ‘hold’ never affected the amount of interest, or whether you could earn interest on your checking account.”
Then what is the point of a hold. Someone is making money on it. Is it the CU? Is it the card processor? Is it MasterCard? You didn’t answer the question at all. All you did was explain what a hold was. If there is no profit for anyone than why does it exist?
Teresa: I have been a member of this credit union 35 years, and through my interactions, I have come to know many folks at the credit union. While I am often quick to point the finger when I get frustrated, there are times when giving the benefit of the doubt is warranted based on facts.
The HOLD is money that YOU have already committed to a merchant, whether by presenting your debit card and using your PIN or swiping it as a credit (PEN transaction). The hold is solely associated with YOUR account, from money YOU have spent. Therefore, it SHOULD be held…for the merchant. The money is still in your account, but it has been set aside to pay that merchant, so it is not considered part of your available balance. (If you have i-Teller, you can see two different balances–one that is the total amount and another, lesser amount that reflects your balance with any holds for purchases you have made using your debit card.) To answer your question, this is why a hold exists. The holds don’t go into a pot of money held by the credit union, or any other entity, as you alluded.
If you still have questions about holds, then I would encourage you to do a bit of research online. Here’s a good article I found which may be of help to you: http://www.debitfacts.org/Money-Management/the-benefits-of-debit-cards/.
Like all relationships, which have ups and downs, I’m with my credit union through thick and thin. I love SCFCU and know–without a doubt–they care about their members. If they didn’t, they would not keep updating us on this issue. Have you ever seen a BANK do anything like that? I don’t think so…
Regieg- Again, I know what a hold is. Also, it is PIN transaction, not PEN. I too have been a member at the Credit Union for quite some time now.
My question was directed to Troy. My question was not regarding holding funds that I spend. My question was the point of holding additional funds. If no one will be making any profit on holding ADDITIONAL funds on top of what the consumers spend, then what would be the point of the hold? I’ve seen it happen in the past at some merchants and wonder if this will happen again in the future. So to satisfy my own desire to learn as much as I can, I would like to know what purpose does the additional holds serve.
I’m glad you are so please with everything the Credit Union has done for you. However, I do not like to be talked to as a child or appreciate when someone will not answer a direct question, but rather, dances around the issue.
As a side note, I have a family member that uses First Federal, and she is able to see holds on her account when she checks the website.
Teresa… sorry I was a little late getting back to you. I should have been more clear when explaining the communication breakdown between us and our processing partners. Technically, there is ‘no point’ to holding more than the transaction amount, which is why we fixed it. If there is something else I missed, please feel free to use my contact information in the e-mail I sent you directly last evening. We can chat one-on-one at your convenience.
This seems much better than the way my FORMER credit union (Navy Federal) handled holds at the pump. They would hold $1 regardless of the transaction amount. That way it was easier to overdraft later, or even at the pump. Even if you went $.01 over, went home and put the $.01 back online 10 minutes later, BAM! $20 fee. Plus, if you mad any purchase after that fill-up, each transaction was a $20 fee for overdraft. Sometimes the overdraft fee would be backdated and shoehorned in before other transactions, causing even more fees.
It sounds like you guys are doing things the right way and helping your members. Thank you!