An automatic toll collection system includes a mobile app that receives a plurality of toll gantry information from a database, reads GPS location data received from the mobile device hosting the app, and creates a plurality of trip segments using the GPS location data and time stamp. The system then determines whether the mobile device is travelling on a road where toll ought to be collected by comparing the trip segments with the toll gantry information. If the vehicle is passing through a gantry or toll road, the system will then calculate toll charges based on the trip segments and gantry information, generate a toll charge transaction, and notify the mobile user of the toll charge.