Why Fuel Cards are More Beneficial to the Fleets than Credit Cards?
AndrewJune 29, 2022Fuel Cards

Why Fuel Cards are More Beneficial to the Fleets than Credit Cards?

You might be looking for ways to lower your fuel costs now that the fuel price fluctuation is beginning to start again. Have you considered using fuel cards instead of a fleet credit card or paying cash for fuel for your truckers? While they might look similar to credit cards, using a credit card for fleet utilization isn’t always the most advantageous option. There are several benefits that fuel cards offer that you might not be receiving if you’ve been utilizing a fleet credit card for fuel advantages. 

Despite falling diesel prices, fuel remains one of the most expensive operating costs for carriers. Your company will be more lucrative the better you can manage that expense. Using a fuel card rather than a company credit card or liquid assets for diesel purchases is one of the simplest ways to control fuel costs.

We will go through the basics of fuel and credit cards, followed by their advantages in this blog. 

What Is A Fuel Card?

A fuel card, similar to a credit card, makes it simple to pay for and track your corporate fuel transactions. It also links to an account like a credit card. The fuel’s price is billed to your account when you fill up by merely swiping your card. Payments may reflect in your bank or credit card account. You don’t need to maintain and add up fuel invoices because every purchase is tracked and itemized on a single tax statement.

The only significant distinction in using a fuel card is that it necessitates accessing the driver’s unique PIN and the vehicle’s mileage. Behind the scenes, however, there are several other significant differences. 

For any purchase, there are corporate credit cards. In contrast, a fuel card is specifically for purchasing fuel and upkeep for company property.

How Do Fuel Cards Work? 

A private payment network of gas stations is the foundation of a fuel card. It is only functional at gas stations connected to this system. However, the optimum fuel cards will encompass the bulk of gas stations in the United States (95 percent or more).

The gas purchase information is available online as soon as the driver buys it. The company can access this information, prepare reports, and maintain cards anytime through a web portal. Drivers can manage their cards via a mobile app.

In contrast to conventional fuel payment methods, a fuel card has some significant advantages.

How Do You Use A Fuel Card? 

Utilizing fuel cards is very effortless. To put it simply, instead of using personal cash or a company credit card to pay for the fuel at a gas station, the employee uses a fuel card. The bill is then charged directly to the company.

It’s worth noting that most fuel cards are only legitimate inside a single network. For instance, the Shell Multi-Network Fuel Card works at gas stations operated by Shell, Esso, Texaco, Gulf, and Gleaner. To fill up at a supermarket petrol station, however, you must have a legitimate fuel card at Morrisons or Tesco, such as the FuelPlus Fuel Card.

Advantages Of A Fuel Card

Fuel cards, like cash and credit cards, are adaptable. They may even provide discounts on all of your company’s fuel purchases! With a dependable fuel card, you will also be able to solve some of the biggest problems with conventional fuel payments. Here are some of the advantages of fuel cards:

What Is A Credit Card?

With a credit card, a customer can borrow up to his pre-approved credit limit. Credit cards are a form of credit facility offered by banks. It allows consumers to make purchases of goods and services. As well as income and credit score, the credit card issuer determines the credit limit based on those variables. Credit card information includes the card number, recipient’s name, expiry date, signature, CVC code, etc. Credit cards have the advantage of not being linked to a bank account. As a result, every time you use your credit card, the sum is subtracted from your credit card balance instead of your bank account.

How Do Credit Cards Work? 

A credit card is primarily a small loan from the bank, to put it simply. While some may consider credit cards to be “easy money,” your credit balance is a loan with an APR (also defined as interest) that will be billed to you as the account holder if you do not pay off your balance at the end of a billing period. Upon approval of your credit card application, the bank will add a credit limit to your account. The credit limit represents the most the bank will permit you to splurge using the card. The credit limit of your credit card is affected by several factors, such as your revenue, liabilities, and credit score.

Credit card transactions deduct your available balance from your account. In contrast, making a credit card payment will give you more accessible credit for future orders.

How Do You Use A Credit Card?

Credit cards are simple to operate. You may have to insert your card into a reader or swipe it at the cash register when you enter a shop. You can also use your card to make non-contact payments in stores. Using your credit card when shopping online is as simple as filling in your card details, which include:

It’s also critical to utilize your credit card in ways that will assist you in improving your credit score while not costing you too much in terms of interest and fees.

Advantages Of Credit Cards 

With its simplicity and convenient pay-back options, credit cards have become an essential part of life. Credit card discount offers and transactions are unmatched by any other financial instrument. However, credit cards become debt traps if wrongly utilized or if you charge more than you can afford to pay back when the bill arrives. If you’re new to the concept of credit, here are five advantages:

Why Do Fleets Need A Fuel Card Instead Of Credit Card?

Even with all the advantages, credit cards are not the most suitable option for fleet managers and drivers. Unlike credit cards, fuel cards offer a wide range of benefits specifically catering to fleets’ needs of controlling fuel expenses. Here are the benefits that fuel cards offer over credit cards: 

We hope that this blog has enriched your knowledge on fuel cards and credit cards along with understanding why fuel cards can be more advantageous for you while purchasing fuel. A wise decision cannot only help you save money on fuel but also provide you with several other benefits. 

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