What are fuel cards and how do you use them?
Though fuel cards have been around for decades, their function and sophistication has changed dramatically in line with developing business and consumer demand. Whether you are a small business owner looking into the benefits of a fuel card or a driver who simply wants to know more, we have got all the information you need.
What are fuel cards?
Fuel cards are a method of paying for fuel which functions in a similar fashion to credit cards. The account holder for the card will usually make a deal with a particular company or fuel provider that will enable them to get a wholesale price, rather than retail, at their specific petrol stations around the country.
A fuel card carrying driver just needs to present their fuel card at a covered petrol station. This will then add their fuel automatically to a compiled invoice which is sent to the company on a weekly basis.
Though the use of fuel cards can be traced back before the 1980’s, they have developed dramatically since their infancy and have become a much more practical and in-demand method of fuel payment, particularly with businesses.
Who uses fuel cards?
Fuel cards are predominantly used with business owners, particularly those who operate in industries of high vehicle demand like transport, haulage, courier services. Nowadays companies can establish very sophisticated, tailored fuel card plans with certain companies which allow them to get fuel cards to cover any number of drivers across their network. These drivers then use the cards as a promise of payment from the business at participating petrol stations, and the company will then receive a (generally) weekly invoice.
This method of payment is great for businesses as it helps to cut down dramatically on fuel and administration prices and allows companies to remain in much stricter control of their vehicle network. Modern fuel cards can give companies the function to restrict fuel cards to a certain price and fuel type, and some can even allow cardholders to purchase vehicle maintenance products like lubricant.
Can individuals buy fuel cards?
As fuel prices continue to rise and get more competitive, demand for personal fuel cards increases also. Instead of focusing on the control that can appeal to larger businesses, large numbers of individuals desire for wholesale fuel prices, easier payment offers and discounts in exchange for brand loyalty. This is something that a number of fuel card suppliers have begun to notice, and provide for.
Though still in the early stages, there are a number of fuel card options for individuals which, whilst not as sophisticated as popular company schemes, offers individuals the opportunity to profit and receive savings.
Pros of fuel cards
- Detailed log of fuel card usage.
- Regular recorded invoices.
- Secure method of payment.
- Dramatically reduces prices of administration and fuel price for large scale vehicle networks.
- Increasingly competitive market of fuel card providers, meaning emphasis on fuel cards providing discounts and special offers.
Cons of fuel cards
- Still require regular payment, not quite same functionality as a credit card.
- Can only be used at certain petrol stations, requiring some forethought to route planning, particularly on longer and more demanding transport services.
- Not as beneficial for smaller businesses.
- Not as complex benefits for individual fuel cards.