A recent report published by RAC Limited, UK, states that – fuel prices are at an all-time high! With the constant political turmoil ravaging the country, fleet owners are expecting escalated costs in the upcoming days. Mostly unpredictable, fuel costs are a significant portion of a carrier’s profit margin. The higher the fuel rates, the increased the operating expenses! Having said that, fuel cards mitigate the total cost and offer a range of benefits to the users.
As you scroll through this post, you will get a detailed idea about – these cards, their features and usage, various types of cards, and how to pick the correct fuel card.
What is a Fuel Card?
For the newbies hovering on this page, fuel cards are specialized payment cards that are primarily used to make cashless payments within a specific chain of service stations. Technically speaking, they operate quite like credit cards, however, they are tailored for fuel-related transactions and vehicle maintenance.
In terms of their services, they not only facilitate – the settlement of accounts but also save time, track travel expenses, and improve security levels.
Features of fuel cards
These fuel cards come with a host of features such as –
- Strong security features
Fuel cards are incorporated with strict security measures – from PIN protection to fraud detection algorithms to monitoring of transactions.
- Saves money for the business
These cards come with a range of fuel price discounts, cashback, and bulk purchase discount options. Thus, on the whole, it saves the concerned fleet owner a lumpsum amount!
- A strategic system to deal with vehicle expenses
These energy cards follow a system wherein businesses optimize their expenditure (by containing fuel usage, getting insights into transactions, and monitoring vehicle performance). Every detail is documented and hence eases the reimbursement process.
- Wide flexibility
The last of its features is that these cards reduce administrative backlogs and make the payment mode hassle-free.
What to check before choosing a fuel card?
In this section, we will discuss some of the key factors that you must note before opting for a fuel card. They are –
Factor 1 – The requirement of the business
Understand your operational requirements and check if the fuel card aligns with your requirements.
Factor 2 – Area of operation
Prepare a list of the key areas where your fleet functions and if the card is accepted there. For the record, most fuel cards are accepted at – service stations, secure parking, bridges, tunnels, and highways to name a few.
Factor 3 – Its cost-effectiveness in the long run
Always make it a point to assess the overall cost-effectiveness of the card. Estimate the range of fees (annual, transactional, and additional) that are to be paid and determine the requirement of the card accordingly.
Factor 4 – Whether it provides real-time analytics
Another key factor to check before getting a fuel card for your fleet is – whether it provides real-time analytics and specific insights into expenditure trends.
Factor 5 – Easy account management
The last factor you must note is choosing a fuel card provider with robust account management and a tech support system. Choose a user-friendly card.
What are the most used fuel cards?
In this section, we will discuss the multiple types of fuel cards that you can apply for –
- Company fuel cards – To manage a specific organization’s fuel requirements
- HGV driver fuel cards – To improve your accessibility to truck stops and motorway fuel stations
- Van driver fuel cards – To tend to attend jobs or on-the-road jobs
- Sole trader fuel cards – To cater to the requirements of the self-employed
- Mixed Fleet fuel cards – To incorporate and create data on fuel expenses from multiple vehicles
- European fuel cards – To pay and keep track of fuel usage when tending to job needs abroad
How do fuel cards work for businesses?
Let us quickly give you an overview of the working of fuel cards –
Step 1 – You can either apply for the fuel card through the concerned website or connect with their sales coordinator. Once that is done, they will ask for your basic information and follow the required procedure.
Step 2 – After you get the approval, these cards need to be activated online/by phone. After that is done, you can use these cards at the designated places.
Step 3 – In terms of its usage, once the card is swiped, you get the data in real time. From there you can note the analytics and can monitor the usage.
Is it suitable for small business fleets?
Assuming you have been reading till here, you have got every detail regarding the usage of fuel cards in the long run for your fleet to save an ample amount of money. So, let us quickly elaborate on how even small businesses can get its assistance –
- Irrespective of the size of your fleet, this card is a huge fuel saver! You can even reclaim the VAT on the fuel all thanks to the detailed analysis received on paper.
- Secondly, for SMBs, scrutinizing every security feature is difficult. Hence, a less costly mode is required for the same, and fuel cards offer that perfect alternative.
Therefore, keeping aside the size of the fleet business, these cards with time are becoming irreplaceable assets for one’s business.
Conclusive thoughts
Given the current set of situations in terms of ever-escalating fuel prices and a host of other prospects, fuel cards are one of the most practical and approachable solutions. From providing adequate discounts to determining management tools to assist in handling their expenses – these cards have multifarious usage. As has been discussed in the post above, you can see for yourself how fleet owners can ideally navigate through this financially challenging situation by leveraging these cards.
Frequently Asked Questions
Q1. How do you get fuel cards for business?
Ans. To apply for a fuel card, you must submit detailed information about – your business type, company details, fleet size, and tax identification number.
Q2. Which bank’s fuel card must you choose?
Ans. This depends on a couple of factors – their variety of offers, banking services, features, and fee structure.
Q3. What are the key benefits of fuel cards?
Ans. The key benefits include – micro-management of the working process, improved security features, and reduced costs.
Q4. Can you get fuel cards for electric vehicles?
Ans. As per the latest news, fuel cards are available for electric vehicles. They are adapted to a whole new set of features in this case and their usability also varies significantly.