Tesco petrol station at Kingston Park, Newcastle upon Tyne. The supermarket has explained why motorists may see a temporary £120 charge when using Pay at Pump. Archive photo: Phil Thirkell / Geograph
Tesco has clarified why some motorists may notice a £120 transaction appearing on their bank statements after filling up at one of its petrol stations, reassuring customers that they will only be charged for the fuel they actually purchase.
The supermarket giant operates petrol filling stations across the UK, with many drivers using its convenient Pay at Pump facilities to refuel without visiting the kiosk.
However, some customers checking their mobile banking applications may be surprised to discover a £120 payment or pending transaction, even when they have purchased significantly less fuel.
The amount is linked to a temporary payment authorisation process designed to ensure motorists have sufficient funds available before filling their vehicles.
For residents of Newcastle Great Park, Gosforth, Kingston Park and surrounding areas who regularly use supermarket petrol stations, understanding how the system works could help avoid unnecessary concern and confusion.
Why Does Tesco Show a £120 Charge?
The £120 figure relates to a process known as pre-authorisation, which takes place when customers use Tesco's Pay at Pump service.
Before motorists begin filling their vehicles, the payment system requests authorisation from their bank or card provider for up to £120.
This allows the petrol station to check that sufficient funds are available to cover the fuel being purchased.
Although the amount may temporarily appear on the customer's bank statement or mobile banking application, it is not necessarily the amount they will ultimately pay.
Once the customer has finished refuelling, the pump sends the actual transaction amount to their card provider.
Any remaining funds that were temporarily reserved should then be released back into their available balance.
Tesco has confirmed that customers are only charged for the amount of fuel they purchase, not the full £120 pre-authorisation amount.
How Does the £120 Pre-Authorisation Work?
For example, a motorist visiting a Tesco petrol station might use Pay at Pump to purchase £45 worth of petrol.
Before the pump is activated, their bank could temporarily reserve £120 from their available balance.
Once they have finished filling up, the final payment is confirmed as £45.
The remaining £75 should then become available again, meaning the customer ultimately pays only £45.
For most customers, this adjustment happens quickly.
However, depending on the bank or card provider, there may occasionally be a delay before the correct balance is displayed.
This can be particularly confusing for anyone who receives instant transaction notifications or regularly checks their bank account through a mobile application.
What Happens If You Have Less Than £120 in Your Bank Account?
One concern surrounding Pay at Pump transactions is whether motorists need to have at least £120 available before they can purchase any fuel.
Tesco has explained that this is not necessarily the case.
If a customer has less than £120 available, their bank or card provider should normally communicate the lower authorised amount to the petrol pump.
The pump will then display the maximum amount of fuel the customer is permitted to purchase.
For example, if someone has £40 available in their account, their bank may authorise a maximum fuel purchase of £40 rather than the full £120.
The pump will prevent the customer from exceeding the authorised amount.
However, Tesco acknowledges that some banks and card providers may not support partial authorisations.
In those circumstances, the transaction could be declined, even if the customer has enough money available for a smaller amount of fuel.
Tesco recommends trying another payment card if this occurs.
What Payment Methods Does Tesco Accept at Pay at Pump?
Tesco has also clarified which payment methods can be used at its self-service petrol pumps.
Customers can purchase up to £120 worth of fuel through Pay at Pump.
The service accepts UK-registered chip and PIN payment cards, with the exception of Visa Electron.
Contactless payments are not accepted at Tesco's Pay at Pump terminals.
Drivers wishing to use contactless payment can instead pay at a petrol station kiosk where this option is available.
Tesco accepts contactless card payments of up to £100 at its kiosks, and there is no maximum fuel purchase limit when paying inside.
These arrangements mean customers should consider which payment method is most suitable before filling up, particularly if they have limited funds available or prefer not to have money temporarily reserved.
Why Was the Payment System Introduced?
The pre-authorisation process is part of wider changes to how automated petrol pumps handle card payments across the UK.
Previously, many Pay at Pump terminals carried out a small £1 authorisation to check whether a customer's payment card was valid.
The full amount spent on fuel would then be processed separately, sometimes taking a day or two to appear on the customer's bank account.
Under the newer system, introduced through payment industry requirements, petrol stations check that sufficient funds are available before fuel is dispensed.
The changes are intended to protect both motorists and retailers.
For customers, the system aims to provide a more accurate reflection of available funds after a fuel purchase, reducing the likelihood of accidentally spending money that has already been committed to another transaction.
For petrol stations, it helps prevent situations where fuel is dispensed but the customer's account does not contain enough money to cover the purchase.
What If the £120 Still Appears on Your Bank Statement?
Tesco has acknowledged that some customers may continue to see the £120 amount on their accounts after purchasing fuel.
This can happen when a bank or card provider does not update the transaction information immediately.
In most circumstances, the original authorisation should be replaced by the actual amount spent, with any unused reserved funds released.
However, if the £120 remains visible or customers believe they have been charged incorrectly, Tesco advises contacting their bank for further information.
Motorists who notice an unexpected amount should:
Check their fuel receipt to confirm exactly how much petrol or diesel they purchased.
Review their banking application to see whether the £120 is marked as a pending transaction rather than a completed payment.
Check their available balance to establish whether the unused reserved funds have been released.
Contact their bank or card provider if the amount remains incorrect or the temporary authorisation has not been removed.
Contact Tesco customer services if further assistance is needed with the original fuel purchase.
Customers should not assume that an initial £120 notification means they have permanently lost that amount.
However, an incorrect completed transaction or a hold that remains unresolved should always be investigated.
What Does This Mean for Newcastle Great Park Drivers?
For motorists living in Newcastle Great Park and the surrounding communities, the explanation is a useful reminder to check how self-service petrol pumps process payments.
With household budgets remaining an important consideration for many families, seeing an unexpected £120 transaction could understandably cause concern.
A temporary authorisation can also affect the available balance shown in a bank account, which may be inconvenient for customers managing their spending closely.
Those who want to avoid the Pay at Pump pre-authorisation process may prefer to use a staffed petrol station kiosk where available.
It is also worth remembering that similar payment authorisation arrangements operate at other UK petrol retailers, although individual spending limits and payment options can differ.
The important distinction is that a temporary £120 authorisation is not the same as being charged £120 for fuel.
Tesco says customers should ultimately pay only for the petrol or diesel dispensed into their vehicles.
Have Your Say
Have you ever noticed a £120 payment appearing on your bank statement after filling up at Tesco?
Have you experienced delays in having the remaining money released, or has the Pay at Pump system always worked smoothly for you?
We would be interested to hear about your experiences, particularly if you regularly use supermarket petrol stations around Newcastle Great Park, Kingston Park and Gosforth.
Share your thoughts with fellow residents in the Great Park Residents Group on Facebook.
Further Information and Official Guidance:
