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National
Joanne Welford & Kieran Murray

Tesco explains why it will start charging drivers a £99 deposit for fuel at its petrol stations across the UK

Tesco has revealed changes in the way it charges motorists for fuel at its pay at the pump stations.

The supermarket giant is replacing the £1 pre-authorisation charges for Pay at Pump transactions with a £99 deposit instead.

The changes, which are currently being piloted, have been made because the rules have been changed by card companies including Mastercard, Visa and American Express, says Tesco.

READ MORE: HMRC urges millions of people in the UK to claim their free £500 tax relief quickly

If the trial is successful, it is understood the changes will be rolled out across the UK later this year.

It means drivers filling up will see up to £99 placed onto their card as a deposit for their fuel, reports TeessideLive.

Previously, all Pay at Pump transactions were authorised by requesting a £1 transaction from card issuers before taking payment for the value of the fuel one to three days later.

Drivers filling up at Tesco will see up to £99 placed onto their card (Joseph Raynor/ Nottingham Post)

Three years ago, Asda was forced to suspend a similar scheme after complaints from motorists.

Here's everything you need to know, what Tesco say and why the changes are being introduced:

What are the changes?

Previously, all Pay at Pump transactions were authorised by requesting a £1 transaction from your card issuer before taking payment for the value of the fuel one to three days later, says Tesco.

"Under new rules implemented by Mastercard, Visa and American Express, we must now request authorisation from your card issuer for up to £99," a spokesman said.

"Once you’ve finished filling up, the final transaction amount is sent to your card issuer, and the remainder of any unused funds up to the maximum filling amount will be released back to your available balance.

"We’ll only ever charge you for the value of the fuel you’ve actually purchased."

Why are the changes being made?

The rules have been changed by Mastercard, Visa and American Express to help cardholders to keep control of their budgets in real time, says the supermarket.

What if I don't have £99 in my account?

Tesco says if your account balance is under £99, your card issuer should respond with the lower amount they will allow and the fuel pump screen will show the value you can fill up to.

Some card issuers might not allow partial authorisations below £99 and the advice then is to try another card.

Will my statement show a £99 transaction?

Tesco says it will only ever charge drivers for the value of the fuel they have purchased, but advise people to talk to their bank if they have concerns.

Where can I get more information?

The Tesco website points customers towards their card issuing bank and the Mastercard, Visa and UK Finance webpages.

What about other supermarkets and pay at the pump places?

The changes will be brought in to cover all pay at the pump petrol stations as they are being driven by card companies including Mastercard and Visa.

According to the Mastercard website: "The way you pay for your fuel at an automated fuel pump in the UK is changing. Your card issuer/bank will temporarily reserve up to £99 of your available balance while you fill up.

"Then when you have completed fuelling, you’ll be charged for the correct amount of fuel you have used and the remainder of any reserved funds will be released back to your available balance."

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