As a non American, the idea of a bank account number being a kind of secret that is usable to pull money out of the account is the most curious thing to me. I guess something like this can only exist in a high trust environment.
Things aren't actually that simple. In terms of preventing fraud by the merchant, it's similar to credit cards in that the merchant needs to have a relationship with a bank in order to process ACH payments. That bank does underwriting on the risk of the merchant and has fraud prevention mechanisms in place.
For someone other than a merchant to transfer money out of your account with just your bank details, they would have to either try to pass a fake check or set up your bank account as an external account that they can transfer money out of to one of their own financial accounts. But external accounts are typically verified with test deposits before they can be transferred to/from.
I think it's less a function of a high trust environment, and more one of law enforcement consistently prosecuting even relatively minor theft.
I'd assume that even in the US, video taping everybody's plates wouldn't be that hard either, but actually getting your money back as a gas station owner might not be trivial.
Not trying to wade into a continental dispute, but weren't gas pumps in the US also fill-then-pay until maybe 10-15 yr ago? I find it strange that you now have to basically guess about how much it will cost and then authorize a purchase up to that amount, instead of, you know, paying for however much actually got pumped (at today's price).
Really you are authorizing some amount above what you will need, but only getting charged what you pump. I guess they consider that anyone who is actually going to overrun their card limit isn't too worrisome to annoy.
Not so long ago it was common enough in some places to have to go inside, give them X cash, then pump, then come back inside to get change - they would set the pump to only dispense up to X. It's basically that system digitized.
If you go back far enough the only record was on the pump itself, so it was either full service, or trust people would come in a pay what they pumped. People did just drive off sometimes in that case, but at least in the full serve case, you still had their gas cap and plate number, which was a disincentive.
You typically authorize payment with a card before pumping, then the final amount is captured by the gas station after you're done. You only have to guess the amount if you're paying cash or if the pump card reader is broken and you have to pay inside.
It's the same concept as paying for a meal at a sit down restaurant: they authorize your card for the check amount plus some extra, then you write in the tip on the receipt, then the restaurant captures the correct amount later (at least, that's historically how it works, many restaurants are shifting to payment terminals where it's all done at once).
> It's the same concept as paying for a meal at a sit down restaurant: they authorize your card for the check amount plus some extra, then you write in the tip on the receipt, then the restaurant captures the correct amount later (at least, that's historically how it works, many restaurants are shifting to payment terminals where it's all done at once).
Depends on where you were. Growing up in orange county, CA, I only remember pay before you pump, even before card readers. Nobody used a credit card for gas back then, but if they did, it would be recorded on a carbon sales slip with an imprint machine and mailed into the processor.
When I went on long driving trips, gas station attendants would be confused when I went in to get $20 on pump three but hadn't pumped. I haven't been out on the road and paying cash for gas in a long time though, I think there's probably some stations where you can pay inside after you pump.
For someone other than a merchant to transfer money out of your account with just your bank details, they would have to either try to pass a fake check or set up your bank account as an external account that they can transfer money out of to one of their own financial accounts. But external accounts are typically verified with test deposits before they can be transferred to/from.