PAY-AT-THE-PUMP CHARGES - WHAT YOU NEED TO KNOW

I understand that Pay-at-the-pump requires an 'authorisation fee'. What is a pre-authorisation fee?

Despite the recent publicity, this isn't a new process - it was established by digital payment providers Visa and Mastercard in 2021. Previously retailers offering pay-at-pump facilities could charge a reserve fee of £1 for consumers using their service, but this was upped to £120 in 2022.

The idea behind reserving the money was designed to ensure all motorists buying fuel have enough money in their account to pay for it, safeguarding both petrol retailers and consumers.

How does it work?

As a motorist, you're required to insert your card and enter your pin to pay before you begin re-fuelling - this is where a pre-authorisation message is sent to your bank to check you have sufficient funds to cover the bill.

Next, the bank will accept the retailer's proposed amount or suggest a lower authorised amount depending on your available balance.

After you finish fuelling, your bank will be notified how much petrol you've used, which should release the excess funds back into your account. For example, if you spend £...