Do Gas Stations Take Afterpay for Fuel? What to Know

Afterpay offers a “buy now, pay later” service, allowing consumers to split purchases into smaller, interest-free installments. This popular payment method helps individuals manage spending flexibly. Many wonder if this convenience extends to fuel purchases at gas stations. Understanding Afterpay’s interaction with gas station payment systems clarifies its practical application for motorists.

Afterpay Acceptance at Gas Stations

Afterpay is generally not accepted directly at the fuel pump for gasoline purchases due to the immediate and variable nature of fuel transactions, which do not align with its installment model. However, Afterpay may be used for purchases inside the gas station’s convenience store if the store has integrated it for general merchandise like snacks or drinks, but not for fuel itself.

There are specific workarounds that allow for using Afterpay for fuel. If a gas station accepts mobile payment methods like Apple Pay or Google Pay, and a user has an Afterpay Card linked to their mobile wallet, they might be able to pay for fuel through this method. Additionally, some retailers allow the purchase of fuel gift cards or vouchers through Afterpay, which can then be redeemed at participating gas stations. These alternatives allow consumers to manage fuel expenses in installments.

Factors Limiting Afterpay Use for Fuel Purchases

The primary reason Afterpay is not widely accepted at gas pumps stems from the payment authorization process. Gas stations typically initiate a “pre-authorization hold” on a customer’s card before pumping, ranging from $75 to $150 or more. This ensures funds are available, as the exact fuel cost is unknown until pumping is complete. Afterpay’s fixed installment model, with immediate first payments, does not easily accommodate this variable authorization.

Another factor involves Merchant Category Codes (MCCs), which are four-digit numbers assigned by card networks to classify businesses. Automated fuel dispensers typically fall under specific MCCs, such as 5542, while convenience stores might use MCC 5541 or 5499. Afterpay’s partnerships primarily focus on retail merchants, and the specific MCCs associated with direct fuel purchases may not align with their standard integration models.

Alternative Payment Methods for Fuel

Given Afterpay’s limitations for fuel, several widely accepted payment methods are available at gas stations. Traditional options include credit cards and debit cards, which are universally accepted at the pump and inside convenience stores. Many gas stations also accept cash, allowing customers to pre-pay for a specific amount of fuel inside the store before pumping.

Many gas station chains also offer loyalty programs or mobile applications, providing discounts or points redeemable for fuel or in-store purchases. Mobile wallets such as Apple Pay and Google Pay are increasingly accepted at pumps that feature contactless payment technology, providing a convenient and secure transaction method.