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Why do transactions sometimes fail at gas station pumps?

Gas pumps place a pre-authorization hold (often a fixed amount much larger than the fuel you buy) before you start pumping, which can exceed a prepaid card’s available balance and cause the pump transaction to fail.

Updated over 3 months ago

Why do transactions fail at gas station pumps?

This is due to the unique card authorization flow for gas pumps. To pay for gas, just prepay inside the station with the cashier.

For more context on why the gas pump specifically fails, here's what happens when you swipe your card (any credit, debit or prepaid card, not just Laso) at a gas pump:

  1. User has a card with $75 on it.

  2. User inserts card into gas pump.

  3. Gas station sends authorization for $1.

  4. Card confirms $1 and optionally sends back the maximum amount that can be charged on the card (in this case, $75).

  5. Gas station charges the card for the full $75.

  6. User pumps $40 of gas.

  7. Gas station refunds the $35 back.

Given the complexity of this flow, nearly all prepaid card issuers don't support it. We are actively working with our issuer to implement this functionality, but unfortunately, it's not fully supported yet.

In the meantime, you can use your Laso card to pay inside the gas station after pumping your gas. This method bypasses the complex pre-authorization process and should work without issues.

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