Supermarket giant Sainsbury’s has announced they will also be charging a “ringfence fee” at fuel pumps, just days after Tesco announced they would be implementing the measures.
New rules set out by Visa and Mastercard means Sainsbury’s and Tesco will be changing how drivers pay for their fuel.
Shoppers paying at the pump for their fuel had previously had £1 ringfenced in their account, but this will now increase to £100 – reports the EuroJournal.
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Sainsbury’s has outlined what will be changing on its website.
Here’s what Sainsbury’s says:
Previously, any AFD transactions ring fenced £1 in a customer’s bank account and uplifted to the value of the purchase 2-3 days later. Under the new mandate, £100 will be ringfenced prior to any fuel being authorised to be dispensed and the value will be reduced to the actual transaction amount after the transaction has been completed.
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- What if a customer doesn’t have £100 in their accounts?
If their account balance is below £100, for example £50, their bank may pass back a message to the pump that it can dispense up to that amount of fuel and the transaction will stop once the partial approval limit has been reached. If this happens the reduced amount will be displayed to the customer on the pump screen.
Although the ringfenced amount on a customer’s card should be released at the point of completing the transaction, there are occasions that this may not happen as quickly as the customer expects. In these circumstances customers should contact their issuing bank for guidance.
- What can Sainsbury’s do to help?
Sainsbury’s have no input into the process to ringfence customers funds in these transactions and therefore are unable to support directly.
The change comes after Tesco found itself at the centre of a shopper backlash after changing the payment rules at some petrol stations.
In a statement, Tesco said: “Under new rules implemented by Mastercard, Visa and American EuroJournal, we must now request authorisation from your card issuer for up to £99.
“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.”
But Tesco was keen to stress that the initial money taken out is not a deposit, and is only ringfenced before you top up your fuel.
They said: “We’re definitely not taking a deposit. An amount up to £99 is ringfenced in the customers’ account, with the unused sum released immediately.”