A fuel card is a system that allows employees to purchase fuel at a discounted price or for conveniece. Fuel cards can be used to fill up company vehicles or employee-owned company cars. They allow you to save money, hassle, and time. Many companies offer fuel cards as an incentive for their workers because of the cost savings for their employees.
A fuel card, also known as a fleet card, is a payment used for fueling and servicing vehicles. Oil companies often issue fuel cards.
Fuel cards are an efficient and secure method of paying for fuel for fleets of vehicles. Unlike traditional payment methods, fuel cards require no cash handling, making transactions quickly and securely.
If your business has employees that use their vehicles for work-related travel, you might be able to reimburse them for their fuel expenses using a fuel card. An employee can pay for fuel with a fuel card, and your business will be billed for the charges later on.
How Do Fuel Cards Benefit Your Business?
Fuel cards can be a useful tool to help you control and manage your business expenses. Many large companies utilize fuel cards to purchase diesel for their fleet of vehicles.
Ease of Use
Fuel cards are payment cards designed to make it easier for fleet drivers to pay for fuel. They can be used at participating fueling stations across the country and come with a range of benefits.
Financial Savings
Fuel cards can help you keep track of spending and identify areas where money is wasted. Each time a driver fills up the tank, they will receive an itemized receipt that details their spending. This makes it easier to see exactly what your business is spending money on and highlight any fraudulent activity or areas where you could be saving money.
Set Limits
Some fuel cards also have a built-in system that allows you to set limits on how much your employees spend when they fill up their vehicle, which means you won’t end up with any nasty surprises when the bill comes in.
Loyalty Points and Discounts
In addition, many fuel cards come with a range of loyalty points schemes, discounts, and cashback offer that allow you to save money on each fill-up – perfect if you regularly use the same petrol station or want to save some money on fuel costs.
Online Management Tools
Some fuel cards even offer online management tools that allow you to view every transaction from your desktop and filter transactions by date, time, or location. This is particularly useful for keeping track of spending if your business has multiple vehicles on the road.
How Do You Get A Fuel Card?
Eligibility
The first step to getting a fuel card is making sure you’re eligible. These cards are usually offered only to businesses. In some cases, individuals may be qualified if they own a business or have many vehicles they use for work. But if you’re looking for one card for personal travel, this isn’t the right option for you.
Credit Requirements
Most fuel cards require good credit because the card issuers give the cardholder a line of credit used to pay for fuel purchases each month, and then the cardholder repays what they’ve spent on gas plus any fees when their monthly bill comes due. You won’t qualify for most fuel cards if you have bad credit.
Brand Restrictions
You’ll also need to decide which brand of fuel is suitable for your business needs — there are several different kinds of fuel cards out there, and they often cater to different types of customers. For example, many fuel cards can only be used at certain brands of gas stations or specific locations.
Rewards Programs
It’s also important to decide what type of rewards program you want from your fuel card. Some will offer cash back or discounts on gas purchases, and others will offer rewards points redeemed at companies that aren’t affiliated with the issuer (such as airlines or hotels).
How Does A Fuel Card Work?
A fuel card works like a credit card, but it can only purchase fuel and fuel-related products at designated fuel stations. Businesses often use fuel cards to track and control their employees’ spending.
Fuel cards require users to enter a unique PIN each time they fill up at the station. This means that unauthorized users can’t use the card without permission, enabling companies to keep track of all the transactions made with their fleet’s cards.
Security Features of Fuel Cards
Many fuel cards offer security features that can help prevent unauthorized purchases and fraudulent activities. For example, most fuel cards require you to enter a PIN before completing a transaction. Some also have security codes that change periodically, making it difficult for fraudsters to duplicate your card. Most issuers also send alerts via email or text message if a purchase is made for an amount outside your budget or in an unusual location.
Provide policies and procedures for your employees:
- Keep your fuel cards in a safe place and only give them to people you trust.
- Keep the PIN for each card in a separate place from the card.
- If you lose the fuel card, report the loss immediately to your supervisor.
- Don’t let anyone else use your fuel card.
- Don’t leave the vehicle unattended when using the fuel card at a fuel station, and don’t leave the cards in vehicles overnight.
Are You Ready To Use Business Fuel Cards?
The fuel card industry is a multi-billion-dollar market with diverse customer requirements. Fuel cards are used by many businesses to account for fuel purchases at the pump or inside convenience stores. They provide customers with a range of benefits to help reduce administrative costs and improve fleet efficiency.
A fuel card isn’t a replacement for your standard payment method, and it simply provides one mechanism of payment that allows you to keep track of your spending in real-time without worrying about fees. Fuel cards can also help reduce administrative costs and improve efficiency – which is why many businesses use them around the globe.
