Landmark Credit Union

JULY 2, 2009

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LANDMARK CU IS YOUR FULL FINANCIAL SERVICES CREDIT UNION! VISIT US TODAY FOR ALL YOUR FINANCIAL NEEDS.

Buyer Beware At Gas Pump

You may have topped off with just $20 worth of fuel, but the debit-card transaction could freeze as much as $75 in your account, sometimes for days. If you ever use your debit card to pay at the pump, watch out: Did you know that every time you top off the tank, a chunk of your checking account can be blocked -- sometimes for days, with the potential to cause you all sorts of financial headaches and bounced checks?

How your money gets frozen

If you use your debit card at a pump that does not require a PIN, your card will be blocked out for an amount -- often $50 or $75 and sometimes higher. That amount doesn't "un-block" as you drive away. Instead, the hold remains up to 72 hours, until the station does a "batch" transaction that lets the financial institution know the actual amount. While the length of the hold is up to your financial institution, the amount of the hold is up to your gasoline retailer.

Each oil company has a different policy: Some preauthorize just $1 for gas purchases. Others, however, preauthorize $75 when customers use debit or credit cards. The reasoning behind this policy is that oil companies don't know how much gas you're about to pump -- only PIN-based debit transactions are processed immediately -- and so they earmark a certain amount of your money. They want to make sure they are protected, and they get payment for the gasoline.

This general idea isn't new. Credit-card companies have done it for a long time. (Think of when you rent a hotel room or a car, and the attendant runs your card upon your arrival to ensure you can pay for it.) It's less of an issue with credit-card owners, however, because you're usually told that it's happening and you're probably not flirting with your credit limits. If a gasoline company puts a portion of your checking account off-limits without your knowledge, however, it can cause real problems. If there's a block on your account and you have checks come in against your block, you could suffer bounced-check fees and your debit card could be declined for other transactions such as ATM withdrawals or other purchases. The problem wouldn't be so bothersome if the blocks disappeared within even a few hours. But the $75 hold can block your account up to five days.

How to protect yourself

How can you protect yourself at the pump? Station owners and consumer advocates offer this advice:

If you must use a debit card, pay inside where you can use your PIN number; PIN-based transactions are registered immediately.

If you pay at the pump, use a credit card.

Oil companies' proprietary charge cards often don't have any kind of block feature on them, but not always. Check with your card company.

Cash is still good -- and many gas stations, tired of paying high credit-card fees, now give a discount of up to a dime a gallon for cash. Look for such deals.

Find out which gas companies authorize the larger holds and buy somewhere else. (my personal favorite)

AMERICAN SHARE INSURANCE

Your Insured Funds

q ASI insures each and every account of an individual member to $250,000 without limitation as to the number or nature of the accounts held. (See example of coverage below).

Member�s Holdings	ASI Primary Insurance
Savings	$ 250,000
Checking	$ 250,000
Money Market	$ 250,000
Christmas Club	$ 250,000
CD 1	$ 250,000
CD 2	$ 250,000

Total Insured	$1,500,000

q No credit union member has ever lost money in any ASI-insured credit union.

q ASI is owned by credit unions and only insures credit unions. Currently, over 1.5 million individual consumers belong to credit unions insured by ASI.

q Like the credit unions it insures, ASI is safe and sound. The company�s equity ratio of 1.49% is greater than that reported by federal deposit insurance funds.

q ASI does not hold any collatarized mortgage obligations (CMOs) or any of the types of exotic investments that created the need for the $700 billion bailout of AIG, Goldman Sachs and other investment firms currently under consideration by the US Congress, nor does it insure or guarantee the performance of such securities to any parties.

q ASI�s balance sheet exhibits solid characteristics with 25% invested in cash and cash equivalents, 70% in U.S. government-guaranteed agency bonds and US Treasuries, and 5% in other assets (certificates of deposit, accounts receivable, building and other fixed assets).

q ASI�s insured credit unions generally have little or no investments in CMOs, nor do credit unions buy the types of exotic investments associated with the recent and well-publicized failures of some of the nation�s largest investment firms, banks and thrifts.

q ASI�s insured credit unions hold little or no sub-prime mortgages, as confirmed by our numerous on-site field examinations.

q ASI is not assigned a traditional insurance industry rating by companies like A.M. Best or Standard and Poor�s due to the limited number of companies in our industry. Financial data and other information are supplied to the key rating services annually for their review and analysis.

q ASI is selective as to who it insures. Not all credit unions that apply for coverage are accepted due to ASI�s strict underwriting standards.

q The ASI insurance fund provides your credit union with a strong, high-quality program that can sustain regardless of changes in economic conditions - a program that members can trust and rely upon!

Mission Statement

The Mission of Landmark Credit Union as a member owned non-profit organization, is to provide competitive financial and related services of the highest quality to its members in a manner consistent with sound business practices. Our goal is to become a full service family financial center on which members can rely for all their financial needs.

Landmark Credit Union
PO Box 150 5705 Valley Road Fairfield, AL 35064 Phone: 205-783-9100 Fax: 205-783-9115	PO Box 1265 2950 Cogswell Avenue Pell City, AL 35125 Phone: 205-338-7623 Fax: 205-338-6252	300 Springville Station Blvd Ste 1100 Springville, AL 35146 Phone: 205-467-6274 Fax: 205-467-6806
Toll Free: 800-333-5372

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