What Is an Automated Fuel Transaction (AFT)?

Automated Fuel Transactions (AFTs) offer convenience and efficiency for consumers purchasing fuel. These transactions use an electronic payment process that enables self-service fueling without requiring interaction with a store attendant. The system streamlines the experience for drivers and optimizes operations for fuel retailers.

Understanding AFT Transactions

An Automated Fuel Transaction (AFT) refers to purchasing fuel directly at the pump using a payment card without requiring an attendant. This system eliminates the need for manual pumping and in-store payment, saving time for both customers and merchants. Automated Fuel Dispensers (AFDs) allow customers to self-service their refueling needs.

AFTs occur at unattended terminals, where a customer can tap, dip, or swipe their card to initiate the fueling process. This differs from a standard point-of-sale (POS) transaction where the exact purchase amount is known immediately. With AFTs, the final transaction amount is unknown at the start, as it depends on the quantity of fuel dispensed. This unique characteristic necessitates a distinct payment processing method to ensure payment for the fuel. AFDs also reduce operational costs by minimizing personnel needs.

The Transaction Process

An AFT transaction begins when a customer inserts or taps their payment card at the fuel pump. The pump’s system sends an authorization request to the cardholder’s bank. Since the exact transaction amount is unknown, the system requests a pre-authorization for an estimated maximum amount.

Once authorized, the pump activates, allowing the customer to select their fuel grade and begin dispensing fuel. The dispenser automatically shuts off when the tank is full or the pre-authorized limit is reached. After fueling, the system calculates the final cost based on the actual amount dispensed.

The fuel dispenser then transmits the final transaction amount to the payment network and the cardholder’s bank. This step, known as settlement, reconciles the actual fuel cost with the initial pre-authorization. The cardholder’s account is debited for the precise amount of fuel purchased, and a receipt is typically provided.

Distinctive Features of AFT

A characteristic of AFTs is the “authorization hold,” also known as a pre-authorization or temporary hold. This mechanism ensures that sufficient funds are available on the card to cover the fuel purchase, as the final amount is unknown when fueling begins. When a card is inserted at the pump, the system requests a predetermined hold amount from the cardholder’s bank. These hold amounts vary by gas station and payment network, ranging from $75 to $175, though some might be higher, particularly for larger vehicles.

The purpose of this hold is to protect the merchant from potential fraud and ensure payment for the dispensed fuel. For instance, a gas station might place a $100 hold even if a customer only intends to purchase $20 worth of gas. This temporarily reduces the cardholder’s available balance by the hold amount.

Another aspect is “post-authorization adjustments.” After fueling is complete, the actual amount of fuel purchased is communicated to the cardholder’s bank, leading to an adjustment of the initial hold. The final charged amount may differ from the initial pre-authorization, with the bank releasing any excess held funds and processing the actual transaction. While the hold is usually released within a few hours once the transaction clears, it can sometimes take one to seven business days, particularly if the transaction occurs over a weekend. Customers can avoid these holds by paying inside the station or using a debit card with a PIN, which settles in real-time.