Success is in your hand!

Thursday, March 8, 2018

What is RM200 PRE-AUTH DEBIT?

Have you come across "PRE-AUTH DEBIT" and "PRE-AUTH REFUND" with the amount of RM200 in your bank transaction statement? Well don't be shocked, these are actually the bank deduction when you swipe your card for self-service petrol pump at petrol station. 



As you know, #YourFinanceDoctor is a frequent user of Caltex given that there's BPoint to earn. And recently, Caltex is promoting on the Wave & Win with Visa Paywave, so I started to use the self-service pump. Which explains why recently there's such deductions in my bank statement.

To be honest, I don't always check my bank account statement, but I was shocked at first too for not knowing what it is, but given that there is refund so I am not too worried. After a quick search in Google, then only I found out...

PRE-AUTH = Pre Authorization

Basically the bank will deduct RM200 for Pre Authorization IF AND ONLY IF cardholder pays for petrol at a self-service pump. This amount will be refunded within 3 to 5 working days. So if you do not wish to be deducted, just proceed to the counter to use your card.  

Why do they want to deduct?
Well, since the amount of money to pump petrol is not known yet until you are done and put back the pump nozzle, so they have to deduct a fixed amount of RM200 first just to make sure that the card has sufficient credit before the transaction. So if your account has lesser than RM200, you would not be able to proceed to use. 

Can I avoid being deducted?
Not unless if you opt to use pay-over-counter. But if you insist to use self-service pump, perhaps you can consider to use CIMB Card with no deduction but only at Petronas


So the next time if you see such deduction, don't be scared or shocked, you will be refunded! 

4 comments:

Feel free to comment! Thank you!

Henry Tan - Your Finance Doctor © 2014. All Rights Reserved | Powered By Blogger | Blogger Templates | Designed by-Dapinder

UA-40859242-2