More Adventures in Debt

Buying gas today, I noticed a sticker on the pump: “Now you can prepay with your credit card at the pump.” All self service pumps are designed to accept credit cards, so why would you prepay a fixed amount of money rather than just swiping your card and pumping? My guess is more people are bumping up against their credit limits. They know they have just a little room left on the card, so they want more control over the amount they spend. Rather than having to watch the mounting total and time the shutoff to the desired expenditure, prepaying guarantees that you hit the right amount. Furthermore, some people with just a small amount of juice left on their cards or who risk the possibility of having the purchase denied might rather prepay, wait to see whether the purchase is approved, and then either pump with confidence or move on.

As mentioned in my previous post, “Pay with Two Credit Cards,” in today’s economy, merchants need to make special accommodations for the growing number of people in trouble with debt.