The most common method involves in-vehicle GNSS/GPS devices that securely record mileage and location. Some systems may also incorporate periodic odometer readings for verification or utilize smartphone applications as a data collection tool.

Privacy is a paramount concern. These systems are designed with robust data anonymization, encryption, and secure transmission protocols. Data is typically collected in a way that minimizes personally identifiable information, and only aggregate or necessary billing data is retained for account management.

Unlike declining fuel taxes, which are less effective for electric vehicles, an MBF system provides a sustainable and equitable revenue stream as it charges based on actual road usage. It also allows for more nuanced policy design, such as congestion pricing, which fuel taxes cannot directly address.

Key challenges include public acceptance (often due to privacy concerns or perceived fairness), technological complexity of large-scale deployment, cost of in-vehicle devices, and the need for robust legislative frameworks to support its implementation and enforcement.