A reader device is fixed on the fuel nozzle that communicates with the filling station system. Once the fuel nozzle is placed near the fuel tank opening, the reader senses the chip, identifies the CFP ID number of the car and authenticates the transaction. Initially it checks whether there is money in the account, and then the desired amount for which petrol is to be filled is specified. After which petrol starts to flow to the vehicle. Once the refilling process is completed, the chip automatically transfers the required amount to the merchant’s account. Money transfer is also facilitated by a prepaid CFP wallet. On installing CFP in the vehicle, a new account will be created for each customer. Customers can opt for payment using their one time password and view their transaction details at the company’s website or through an application on their mobiles using their login ID and password. The only expense for this system is the installation charge.