The present invention is a fuel dispensing system for enhancing cash transactions, which includes a fuel dispenser associated with a control system and a receiver adapted to receive signals, including identification indicia from a remote communications unit associated with a customer when a cash transaction is indicated. A cash transaction indicator is adapted to signal the control system that a cash transaction is taking place, and may be selectable by the customer or an operator of the system at the beginning of the transaction. The system may also include a transmitter adapted to transmit the customer-related information to the remote communication unit associated with the customer, or may include memory for storing the customer-related information in association with the identification indicia. The system may store credit for change based on a cash transaction, or may provide and store loyalty points on or in association with a transponder.