As you might already assume, pump payment technology is extremely similar to technology used for basic credit card processing. These days, almost any given gas station provides its customers the option to pay for their fuel directly at the pump. The gas company provides the technology which enables payment at the pump, and the gas station supplies the processing account.
The Gas Station’s Account
Once a business (gas station in this instance) has registered with a credit card processor, a merchant account is provided. The credit card processing company will then supply a terminal and a method for managing payments. When customers swipe their cards at the pump via the terminal, the payment is processed by the credit card company. In many cases, the terminal will authorize the transaction by charging a small amount to the customer’s account. This amount can range anywhere from $1 to $5. Eventually, the full payments will return to the owner of the gas station. It works very similarly to how businesses in other industries process credit cards.
At pre-determined intervals, the payments will be credited to the business’s bank account. The intervals at which the payments are received are determined by the company.
The Pump Terminals
While the gas company provides the gas pumps, the credit card processing company is responsible for providing the terminal. Terminals can be used on the inside of the store. Terminals provided for the outdoor pumps are in direct connection with the gas station’s merchant account. The gas station is credited all of its due payments at the determined intervals, and the oil company can oversee these transaction records.
Processing Fees
Any processing company assesses a fee to process card payments. In some cases, gas stations will subtly hike prices to satisfy this fee. Depending on the processing company, the fee can be assessed in a number of different ways.
However, businesses will continue to use credit card processing because it significantly increases sales. When combined with outdoor payment at the pump, it makes for an extremely easy way for the customer to purchase fuel in a timely, quick manner.