By Kolby LaMarche

The Burlington City Council is still considering a new ordinance that would require every gas station in the city to place permanent stickers on fuel pumps warning customers about debit and credit card authorization holds.

The proposed “Consumer Choice and Disclosure” ordinance would mandate conspicuous signage on each pump explaining the typical hold amounts—often $100 to $175—and the duration, which can last from hours to several days depending on the customer’s bank.

If approved, the rule would also require stations to note alternatives, such as paying inside or using PIN-based debit to avoid holds.

The measure advanced through the Ordinance Committee last fall and could come before the full City Council in the coming weeks.

Fuel retailers and industry advocates have strongly opposed the proposal, however, calling it an unfair burden on small businesses.

“Gas stations don’t ‘hold the money’ and don’t benefit from the hold,” said representatives from Vermont Transportation Energy Network, a lobby representing gas station owners, in a statement. “By mandating stickers, the City is effectively requiring locally owned small business owners to provide financial education for the big banks.”

The lobby noted that the proposal echoes Vermont Senate Bill S.113, a similar statewide measure introduced in 2023 that failed to pass the legislature. Lawmakers at the time cited concerns over added regulations on small businesses.

If Burlington adopts the ordinance, it would join a small number of jurisdictions with such requirements. 

Connecticut is currently the only New England state with broad signage mandates related to payment holds at pumps, though focused primarily on other disclosures.

Industry officials argue the stickers are unnecessary. Many stations already post voluntary warnings about holds. Customers can avoid the issue entirely by prepaying inside the store or entering a PIN for debit transactions, which process the exact amount immediately.

Independent gas station owners would face costs to print and install weatherproof stickers on every pump—potentially dozens per location. Violations could result in steep fines.

The practice of authorization holds dates back years as a safeguard for retailers. When paying at the pump without a PIN, stations reserve funds to cover an unknown fill-up amount, protecting against insufficient funds or drive-offs. Banks determine the hold duration, typically releasing it once the transaction settles.

Consumer advocates supporting the ordinance say the disclosures would promote transparency, especially for debit card users who might face overdrafts from surprise holds.

The ordinance was introduced by Democrat Councilor Evan Litwin of the New North End.

Chatter online, and in policy circles, indicates the concept could resurface at the state level in Montpelier later this year.

The City Council has not yet scheduled a final vote on the proposal.