A method of conducting a fueling transaction at a fuel dispenser. The fuel dispenser includes a flow meter operatively connected to internal fuel flow piping. The method comprises the step of providing a displacement sensor for generating information representative of an amount of fuel delivered through the flow meter. The displacement sensor comprises at least one transponder operatively connected to the flow meter. The method also comprises providing at least one interrogator electronics configured for remote electronic communication with the at least one transponder and authorizing the fueling transaction. Finally, the method comprises communicating with the at least one transponder using the at least one interrogator electronics during the fueling transaction. Fuel dispensers and flow meter assemblies comprising displacement sensors having transponders and/or capacitive sensing elements are also disclosed.