When running a business, you have to manage the different expenditures associated with it effectively. And one of the most important and common expenses is purchasing fuel. This especially holds true if you own and operate multiple vehicles for your business. However, many business owners have trouble managing their fuel expenditures efficiently. As a result, most of their capital is spent on purchasing fuel for their cars, which leaves little room for expanding other areas of the business.
This is where fleet fuel cards come into the scene. Also known as fuel cards, they essentially provide a means for tracking fuel usage. Of course, there are other potential benefits of using such cards, which have been discussed in this brief article.
What Is A Fleet Fuel Card?
Simply put, a fleet fuel card is a method of payment that is used for purchasing gasoline and or any other fuel, like diesel, from gas stations. It operates in a manner similar to credit cards, with the difference being you can only buy gas or other associated products with it. That said, some fuel cards can be used for vehicle repair and maintenance as well.
These cards are typically issued by oil companies, such as ExxonMobil, Shell, Chevron, and so on. But today, you can also find fuel cards issued by companies that specialize only in fuel cards, such as WEX Inc., FleetCards USA, Edenred, Comdata, and others. As a matter of fact, the Wex Fuel Cards are one of the most used fleet fuel cards these days, as they offer a ton of benefits to users.
In any case, using a fuel card allows you to manage your fuel expenditures better. Below are some of the things you can do with the help of a fuel card.
- Enable the drivers to purchase fuel without using cash, checks, or credit cards
- Monitor the details of every purchase made with the card
- Limit the amount and number of transactions made by each driver
- Manage the fuel costs for each vehicle in the fleet
A common misconception among business owners is that fuel cards are only suitable for those who have a large fleet of heavy commercial vehicles, like trucks, vans, and semis. However, that is not, as the benefits of fuel cards are applicable for all fleet sizes – big and small.
In fact, the fuel cards being issued these days cover even smaller vehicles like scooters and ATVs. This makes them highly versatile for use by all types of business owners, not just businesses that provide transportation services.
How Does A Fleet Fuel Card Work?
Before you get yourself a fuel card, you should know how it works. That way, you can make the most out of it, which will ultimately help you manage your fuel expenditures better.
First off, you will need to sign up for a fuel card account with a suitable card issuer. You can weigh all the available options and go with the one that best suits your needs.
After the sign-up process is done, you will need to authorize your drivers to use the fuel cards. For this step, you have to add the details of every driver on the fuel card provider’s portal. Following that, each driver will be assigned a unique PIN and a vehicle-specific card that they can use at gas stations to make fuel purchases.
Once the above-mentioned step is complete, you can start using your fleet fuel cards. In this regard, using a fuel card at the gas station is similar to using personal credit cards, as we have already mentioned.
So, after the driver has refueled the vehicle, all they need to do is provide the fuel card to the cashier and enter the unique PIN when prompted. That will complete the transaction, after which they can be on their way. You will get notified about the transaction at the same time, which makes tracking your expenses easier.
Here, you should know that only universal fuel cards can be used at all gas stations, while a restricted fuel card can be used only at select gas stations. The former is slightly more expensive, while the latter is obviously cheaper. That is something you should keep in mind when signing up for one.
Benefits Of Fleet Fuel Cards
There are quite a few benefits to using fleet fuel cards, as we have mentioned below.
1. Get Complete Control Over Fuel Spending
With a fuel card, you can track and monitor all transactions. Additionally, you can set transaction limits for drivers, which gives you complete control over your spending.
2. Review Itemized Expenses For Assets
A fuel card gives itemized receipts that provide a clear idea about each item purchased’s cost, which helps avoid discrepancies.
3. Get An Idea About Cost Trends
You can get an idea about your fuel-related spending trends with a fleet fuel card. That helps with better management of your budgets and finances.
4. Improved Financial Security
Fuel cards come with security features such as PINs and unique IDs, which ensure financial security and prevent misuse.
5. Reduced Administrative Time
With fleet fuel cards, you don’t need to process mountains of bills and paperwork. Instead, you can get digital receipts and notifications about fuel transactions, thereby reducing administrative time.
6. Availability Of Benefits And Reward Programs
Fleet fuel cards offer different kinds of monetary rewards and benefits, which helps reduce fuel spending even further.
Final Words
When getting a fuel card, you should try to go with a company that has a proven track record in this domain, just to be safe. You wouldn’t want to deal with any issues or risks after getting the card, after all.
On that note, make sure to review the security features being offered with the fuel card. Also, you should be wary of any hidden fees since that can impact your finances. And, of course, the more rewards and monetary benefits you get, the better.
Farewell!
