Drivers buying fuel at some pay-at-pump petrol stations now face having £120 ring fenced by their bank in a 'holding fee' before they buy.

The pre-authorisation check, which sets aside money in people's accounts to cover the cost of the petrol or diesel they fill up with, is seeing the maximum reserve limit raised in some places as the cost of petrol remains high.

In 2021 the small £1 charge drivers used to pay to have their debit or credit card approved by forecourt payment systems was steadily scrapped in favour of a £100 check.

But as the price of fuel remains steep, particularly for motorists with diesel vehicles, some petrol stations - including those run by Tesco and Esso - have increased the amount of cash that can be reserved before people fill up and pay, prompting anger from some drivers at the increased amount.

The system means that when you pull your vehicle up at a pay-at-pump forecourt and enter your card's pin number ahead of refuelling, the bank can now ring fence up to £120 of the available funds in your account.

Once you have finished taking as much petrol as you want and return the pump and checkout, the actual amount you have spent on fuel is fed back to the bank and only the cost of the petrol you bought will then be debited from your account and the temporarily frozen money released, or the difference between the two values refunded, either of which should happen within minutes.

The aim of the pre-authorisation check is to ensure customers have enough money in their account to be able to afford to pay for petrol or diesel, alongside efforts to crack down on theft and fraud.

While drivers who don't have £120 available to 'hold' when they enter their pin, may in some instances be asked to select a lower amount relative to the available funds they do have in their account to spend.

But the increase to the pre-authorisation limit at some stations is leading to frustration among drivers, with some expressing concern at the time it can sometimes take to get the initial 'holding fee' refunded.

While the majority of pay-at-pump petrol stations are run by supermarkets, the issue of pre-authorisation payments are the responsibility of the banking sector, including Visa and Mastercard, and are not managed by retailers.

In an explanation on its website Visa writes: "When you insert or tap your card at a self -service pump, your bank will temporarily reserve an amount from your available balance while you fill up. This could be up to £120.

"But not to worry, once you’ve finished filling up, this will be updated to your bank and you’ll only be charged for the amount you’ve spent."

In response to previous complaints on social media Tesco says it expects available funds to always be re-released to accounts within the hour but any customers experiencing any issues should speak to their bank or card provider.

The process for freezing a set amount of money before purchasing fuel is commonplace in Europe and also in most parts of the United States.

The roll-out of automated dispenser transactions in the UK in 2021, which was later than planned because of the coronavirus pandemic, followed trials at a number of petrol stations in 2018.

Customers who don't wish to be issued with the holding fee can get around it by paying at the petrol station kiosk rather than direct at the pump.