What is a fuel card?
A fuel card is a convenient way to purchase fuel and other related services. It’s commonly used by businesses and fleet operators to simplify managing fuel expenses. Fuel cards offer detailed reporting, cost-saving opportunities, and simplify billing processes.
In this guide, we will discuss everything you need to know about fuel cards and the value they bring to both businesses and individuals.
How do fuel cards work?
Fuel cards work in a similar way to your average credit or debit card – the only difference is that you can only make payments on fuel or other vehicle-related expenses (e.g. car washes and tolls).
Here are a few steps to using a fuel card:
- As an employer, you’ll need to issue and assign a card to employees or to a specific vehicle.
- When refuelling, employees will pay as normal by swiping their fuel card. They may be asked for other information such as the car’s registration and mileage, for extra security.
- Each payment will be logged, providing detailed reports for your business.
- You’ll pick a preferred billing date to receive invoices, summarising all transactions to settle as business expenses.
Are fuel cards worth it?
The short answer is, yes. Let’s go through the benefits:
- Cost control: Fuel cards make it easier to track fuel expenses, making fleet management run more efficiently. Spending can be restricted depending on the type of fuel card you choose (e.g. flexible or fixed weekly price cards).
- Time efficient: Due to simplified billing processes, using fuel cards reduces the amount of time spent on administrative tasks.
- Competitive prices: Depending on your fuel card provider, you can enjoy exclusive rates on fuel.
- Convenience for employees: Remove the hassle of employees using their own money and waiting for reimbursement.
- Useful insights: The detailed reports you’ll receive can help you identify any inefficiencies or areas of improvement on your business’ fuel usage.
However, there are some considerations:
- Accessibility: Not all petrol stations accept fuel cards, so you’ll need to check where you can use them and if there are any in your local area.
- Extra charges: Some fuel card providers will charge a monthly fee, or service fee annually.
- Maximum usage: Cards can be capped on how much fuel you can pay for.
Do fuel cards save you money?
Using a fuel card will help both your business and employees. You can benefit from competitive prices, promotional offers, rewards schemes and additional discounts. As well as savings from offers, you can reduce interest costs by merging multiple invoices into a single payment through a fuel card. This can especially benefit businesses who rely on high interest company credit cards to pay for their fuel.
How do I get a fuel card?
Here’s how to secure the right fuel card.
Step 1: Think about your business needs and consider the following:
- The nature/industry of your company
- How much fuel you typically use
- The number of employees you’ll be supplying
- Whether you need a flexible or prepaid fuel card
Step 2: Research and compare different fuel card companies. Things to look out for include:
- Fees and charges (e.g. monthly fees, if any)
- Fuel prices
- Commitment period
- Available rewards and perks
Step 3: Complete an online application.
Step 4: Pass relevant credit checks, and provide proof of address, business operations and fleet details.
Step 5: Once approved, your cards will be delivered, ready for use.
Can I use a fuel card for electric cars?
Yes, EV charge cards are available. However, this is subject to the provider and their compatibility with the EV charging network. Some providers offer dual fuel options or specific EV features within their terms.
Popular card providers that offer fuel cards on both electric charge and fuel, include:
Is there a fuel card for the self-employed?
Yes, fuel cards do extend to self-employed business owners. Providing your company is VAT registered, you’ll be able to apply.
Can I get a fuel card for personal use?
Unfortunately, no. Fuel cards are not designed for personal use.
Learn more about business and fleet leasing with Synergy
Fuel cards are an excellent tool for businesses. However, you should carefully assess the financial position of your business, and how the fuel card will be used to determine the feasibility and overall benefits it can offer your business.
Combining a fuel card with vehicle leasing can enhance its benefits. At Synergy, we provide bespoke business leasing agreements, a salary sacrifice scheme, as well as fleet leasing deals to optimise business operations.
For more information, contact our friendly team today.
