A fuel card is a payment model for businesses that enables drivers to purchase fuel for vehicles used for business activities. It is in the form of a payment card meant for fuel purchases only. Fuel card mode of payment is ideal for fleet companies and different service providers with a fleet of vehicles.
Drivers can fill up their vehicles in selected filling stations within the network of a particular fuel card company. All the drivers have to do is present their fuel cards in a specific filling station, which will be billed, and employees are given receipts that act as proof of purchase. You should understand that this model is ideal for companies with a big fleet of vehicles but not individuals.
Companies should look for the right fuel cards that will enable smooth operations and payments for all the vehicles in their fleet. You can visit iCompario for a comparison of some of the best fuel cards in the market today. This mode of payment has enhanced fuel management in most companies. Most companies with a fleet of vehicles have implemented this, and it is working correctly for them.
Fuel Card Benefits
There is an array of benefits linked to the use of fuel cards. They include:
Cashless Transactions
The use of fuel cards has eliminated the need for cash in this type of transaction. Drivers no longer have to walk around with money required to fill their vehicles. Walking or driving around with cash puts you at high risk of losing it to robbery or other factors. The introduction of fuel cards has eliminated that because everything is cashless.
Financial Management
One area where most companies with vehicle fleets spend a lot of money is on fuel. Most of them have recorded massive losses when using the cash payment method as compared to fuel cards. This is because drivers can exaggerate figures of the amount they use on fuel each day. Fuel cards make it easy for most companies to manage the amount they spend on filling up their vehicles each day because they will get accurate reports.
Rewards
There are different rewards your company can get from the use of fuel cards. This could be from the fuel card company or filling stations in their network. Drivers can earn points with these cards whenever they fill up their vehicles. Earning a specific number of points may see you get rewards such as free servicing or fuel.
Consistent Pricing
Businesses with a fleet of vehicles can enjoy consistent pricing on fuel when they opt for this type of payment. You can get fuel at wholesale prices, which is always constant in various parts of the world. This will help your company save a lot on fuel costs. How about you choose a fuel card to enjoy these benefits.
Choosing the Right Fuel Card
Here is what to consider when choosing the right fuel card for your business.
Identify Your Needs
You should sit down and assess your business to find out whether you need a fuel card. Some of the things that can guide you in this are the number and types of vehicles you have in your fleet. Having a small fleet of cars does not necessarily require you to use a fuel card. The variety of vehicles in your fleet will also help you settle for a fuel card tailored for them.
Card Type
The different types of card you can opt for include pump price and fixed price. Pump price is billed based on the price at the pump, while the fixed price type is based on a weekly fixed rate. The pump price type is always subject to a rise in fuel prices, and this may affect your finances to a certain extent. Fixed price lets you save when there is an increase in prices, and you can compensate for the difference when it reduces.
Fuel Type
The type of fuel you will be using in your vehicle fleet can also guide you in choosing the right kind of card. You will get cards meant for diesel, petrol or mixed fuel. You should identify the type of fuel your car will be using to choose a proper card. Factoring in all these will help you settle for the right fuel card.
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