ASDA customers have been warned of a £99 "holding fee" on all "pay at pump" transactions introduced at a south Essex store this week.

Visa and Mastercard are changing the way pay-at-pump transactions are managed at all fuel retailers in the UK.

A temporary "holding fee", introduced last year but implemented at Asda in Shoebury this week, is in place at petrol forecourts for customers who pay at the pump.

Previously when they paid at pump, their card was pre-authorised for £1.

This then allowed the customers to fill up to £99 with the final amount charged to their account, often the day after, and the £1 pre-authorisation was removed.

Under the new rules imposed at Asda Shoebury from this week, the pre-authorisation amount is changing from £1 to £99. 

This has reportedly left customers thinking they have been overcharged for their fuel.

An Asda spokesman previously explained: "The new rules imposed by Visa and Mastercard mean that the pre-authorisation has changed to £99 which means your bank may create a temporary hold of up to £99 while you fill up.

"On completing the transaction, the actual amount is deducted immediately from your account and the pre-authorised amount is immediately cancelled.

"The solution makes it easier for you to keep control of your finances when you pay for your petrol at the pump, however if an issue does arise you should first contact the bank that issued your card."

What happens if I don’t have £99 in my account?

Asda says with the new approach, your card issuer will tell them the maximum amount you can spend during the pre-authorisation process.

This amount will then be the maximum you can spend on fuel, so you’ll never go overdrawn.

How long will the money be held for?

The card issuer should release any unused money almost immediately once you've finished filling up.

However, it’s been reported in some instances it may take longer for the amount to reappear on the banking app.

If this is the case, Asda recommends first refreshing the banking app. If this doesn’t resolve the issue, and customers are concerned, they should contact the issuing bank for guidance.

They’ll be aware of these changes and will be able to advise customers. Asda reassures it will only charge for the value of the fuel.