Using prepaid gas cards for gas allowance?

[riaketty]

We were doing good, getting rid of all the credit cards, when DH decided to turncoat and decided he liked the convenience of pay-at-the-pump for gas. He says it makes sense, because if he pulls cash, he has to pull $20 at a time, and if gas is only $15, well, he spends the extra $5 cash. I totally understand that, but I want to get rid of the credit card because we just can't keep track. We almost doubled our debt from this one card, within a year. Some of it was medical due to DD2's allergies (blood tests, etc.) that insurance didn't cover, but a lot of it was just $5 purchases adding up.

So I came up with the idea of using prepaid gas cards. Buy $100 in gas on a card each month and carry that. The convenience of pay at the pump without the temptation of cash.

There's only one draw back I can see, and that's that it would only be one gas station, since each one has their own cards.

Am I missing something? Does this sound like a good idea? We'd have to keep track of how much was on it, but that's something we do anyway.

[rainbowmoon]

what's wrong with a debit card?

[riaketty]

Originally Posted by rainbowmoon

what's wrong with a debit card?

Well, first off we don't have debit cards, period. Too easy to overspend/overdraft.

Second off, debit cards can be used for something other than gas... with a gas card, that prepaid money is ONLY for gas, you know?

[Ola_]

We get gas gift cards. I don't find the restriction of using it at only one chain is a problem, but around here there are lots of gas stations, in a rural area it could become a problem. I use the point collector cards from the same chain which would normally make me seek out those station anyway.

It can be good motivation to plan ahead and get gas before you're in the red zone. The few times I got stuck I just put $5 in at whatever station using cash.

[montlake]

OH man I wish I would have thought of that. We switched to cash/envelopes a month ago and doing gas with cash is just not for me. This would be perfect. I'm going to get gas cards each pay day with the cash going forward. :

[enkmom]

My parents do this. They buy the Wal-Mart gift card and reload it every month. They like Wal-Mart, so it is no trouble for them to stop in wherever they travel and get gas. They also buy prepaid Visa cards for a back up.

My parents carry several credit cards so I don't see the benefit of using the gift card, but it works for them.

[karne]

We do this. DH has a long commute for work, so gas is a major expense. We buy pre-paid gas cards 2x/per month, with each pay cycle. We know pretty well how much gas we use on a monthly basis, so we buy the gas cards for a pretty accurate amount, and use them up entirely during the month. It's far more efficient for us than using cash. The issue with the debit card is that several times we have found that large "holds" have been put on our bank account-beyond the actual cost of the gas, by the gas station company. They have been reversed within a day or so. Has anyone else experienced this?

[mightymoo]

Originally Posted by karne

The issue with the debit card is that several times we have found that large "holds" have been put on our bank account-beyond the actual cost of the gas, by the gas station company. They have been reversed within a day or so. Has anyone else experienced this?

This is common practice, it has to do with the way credit (and debit) cards work - its often a two part process for gas stations. The authorization - that's when you swipe your card, at that time the gas station doesn't know how much gas you are going to use, so it authorizes for probably a standard maximum amount. It basically holds the money in your account so you can't spend it on something else and have the actual charge rejected. Then there is the actual purchase, where they charge you for the amount you owe. Then the two are reconciled later as part of a nightly process.


Why not just get a gas card or cards? Most gas companies offer them and that way you don't have the hassle of prepaid cards, or the possibility of spending the extra cash, but you can't use the credit on anything but gas?

[rainbowmoon]

I have never experienced that and have used a debit card in many states!

Originally Posted by karne

The issue with the debit card is that several times we have found that large "holds" have been put on our bank account-beyond the actual cost of the gas, by the gas station company. They have been reversed within a day or so. Has anyone else experienced this?

[montlake]

Originally Posted by mightymoo

Why not just get a gas card or cards? Most gas companies offer them and that way you don't have the hassle of prepaid cards, or the possibility of spending the extra cash, but you can't use the credit on anything but gas?

I do not want another account on my credit. Also we went to cash only as a part of our process of getting out of debt. Because we weren't resposible with cards. Also I've had gas cards in the past and you can buy anything in the store with them.

[Drummer's Wife]

I would get a wal-mart money card, or similar pre-paid visa. You can track all the spending online, too. The only thing is, obviously, it can be used for more than just gas - so if he'd be too tempted to use it other places it may not be any different than a regular credit or debit card. But, if he knew that once the money was gone he'd be outta gas, it may work.

eta: at least then he could stop at any convenient gas station.

[Norasmomma]

Originally Posted by karne

The issue with the debit card is that several times we have found that large "holds" have been put on our bank account-beyond the actual cost of the gas, by the gas station company. They have been reversed within a day or so. Has anyone else experienced this?

Yeah we've had that happen, although now it seems that whenever I do get gas it's not a $50 "hold" but only a $1(I see it on my online banking), I'm not sure if that was because a law changed in my state or what though. I just know sometimes it wouldn't work because there wasn't enough in the hold because we had just made a deposit and it hadn't "technically" gone through. That hasn't happened in a long time though.

[karne]

Originally Posted by mightymoo

Why not just get a gas card or cards? Most gas companies offer them and that way you don't have the hassle of prepaid cards, or the possibility of spending the extra cash, but you can't use the credit on anything but gas?

The pre-paid cards work well for us, no hassle at all. It helps us with 'real time" budgeting. We don't need a credit card for gas.

[texmati]

Originally Posted by enkmom

My parents do this. They buy the Wal-Mart gift card and reload it every month. They like Wal-Mart, so it is no trouble for them to stop in wherever they travel and get gas. They also buy prepaid Visa cards for a back up.

My parents carry several credit cards so I don't see the benefit of using the gift card, but it works for them.

Over here, you get a discount on the gas (3 cents a gallon?) when you use a walmart gift card.

I think a gc would work fine as long as he's willing to keep some cash around in case of an emergency fill up, and then adjust the budget as necessary for that.

ETA: OP, I'm totally with your DH on overspending when I go into the station. It's just so easy to pick up a bag of chips while you are in there.

[Alyantavid]

We use gas cards and get a lower cost on gas. Ours can be used at several different stations, but we only use one place anyways. And only gas can go on our cards, nothing from inside the store.

[Logan's Mom]

I'd be afraid of loosing them or getting them stolen -- not that it would happen, but that is just me. Wouldn't want to carry my entire month's budget on one card that could be gone.

Also, you can buy whatever you want at the gas station and being that I know that, I'd probably buy something I shouldn't.

[sunflower.mama]

What about a cash gift card- american express or the like - to be used only for gas? As long as that's the only place you use it, it's like an envelope for gas and no restrictions on what gas place you pull up to.
It's a good idea because whenever I try envelopes, I fall back on ccs for gas since I don't want to leave the kids and go inside to pay. Plus I like to fill up when I am there instead of getting $20 or whatever worth of gas.

[34me]

The problem with a prepaid Visa is most of them have a fee on their original purchase as well as any re-loading. We buy gas at Kroger a lot because I can earn $.10 off a each gallon several times a month because of how much we spend there. So, I give dh and I each a gift card to Kroger stores as he passes 3 on his way to work and I pass two. We make other arrangements if going out of town. The same can be done for Safeway.

[kimiij]

Originally Posted by karne

The issue with the debit card is that several times we have found that large "holds" have been put on our bank account-beyond the actual cost of the gas, by the gas station company. They have been reversed within a day or so. Has anyone else experienced this?

Any gas station I've been to always puts only a $1 hold on my card. I too would be wary of using my debit card if I found that the gas stations in my area were putting large holds on my debit card b/c I frequently carry a low balance in my checking account...

I think it's a good idea to do the gas cards. See if you can find one that you can use at multiple stations - that way you decrease the likelihood of ending up in a bad situation...

[bobandjess99]

Around here, a $1 hold is common, but we just spent the last week traveling on vacation, and noticed MANY gas stations which had big signs on the pump which said that they put a $75 hold on your card if you swiped a debit/credit card..so that woudl concenr me if it is the case in your area...

It sounds liek you guys are being honest with yourselves, and know you can NOt use cards.
that leaves cash...but it sounds like your dh does not even trust himself not to misspend cash.

Maybe you can find some option whereby you get gas regularly, with cash, but do NOT have anything left over. How much gas do you use? How often do you get gas?

..so, for example, if I was trying to spend a complete $20 bill on gas, all i would have to do is make sure I had $20 worth of gas that could be put into my tank...which, at the $2.50 gas is going for around here, is not hard. I have a 14 gallon tank, and $20 in gas at $2.50/gallon is about 8 gallons, or just over half..which means that as long as i fill up when I have 1/4 tank of gas or less, I am SURE to use a complete $20 bill for gas. That way, no "change" is left over to be spent frivolously. So...my long winded answer is...tell your dh not to stop for gas unless he is at 1/4 tank or less, and he'll ne sure to use up his entire gas allotment on ..GAS.
Or else, have a dsscheduled "fill up day" where you guys go and fill up the car regularly, and pocket the remainnig amount after the fill up.
Maybe dh simply isn't allowed to get gas..if he can't trust himself not to spend the change..maybe getting gas is a priviliege he can't have right now.