This article provides a brief overview of fuel cards and underlines how they can be advantageous for transportation companies. It also discusses how these cards differ from typical credit cards or debit cards.
Cost certainty is something every business strives to achieve. Having a good understanding of your costs can aid in managing your expenses better and allocating resources more productively. When you are operating a fleet of vehicles, it is difficult to maintain any sense of certainty, particularly due to the fluctuating costs of fuel. A good way to organise such expenses is to use a fuel card or petrol credit card. Fleet fuel cards are much safer in comparison to cash and provide an online account where you can review the transactions with ease and even keep off unauthorised spending.
More flexibility than credit cards
In some ways, fuel cards may seem exactly like credit cards. Hence, as a business owner, you may wonder if it is worth getting a separate card just for fuel. However, it is important to understand that while credit cards and fuel cards look similar, they have many key differences. The element of control provided in fuel cards cannot be applied to regular credit cards. The purchase done through the former is just limited to refilling fuel. It allows business owners or operators to avoid any out-of-line transactions and see that the drivers stay within their spending limits. Moreover, fuel cards capture detailed transaction data for fuel purchases, which you are unlikely to find in a simple credit card statement.
Transparency for companies
One of the most complex aspects of fleet management in the transportation industry is the distance between the ones in the office and the drivers out on the road. While finances are managed in the offices, drivers are often spread out throughout a state or even country. It makes it critical to have transparency about drivers’ spending on the road, and fuel cards are a good way to provide it. Once a driver purchases fuel, its details are updated in real-time into the relevant account. These transactions can easily be managed by the people at the office and help them to effectively monitor spending and assess expenses.
Savings on fuel
Fuel is an unavoidable expense for transportation companies. One of the best features of fuel cards is that they allow businesses to save money on such expenses. Usually, there are attractive rebates and rewards provided on fuel cards.
Fuel cards are pretty easy for drivers and operate in a much similar manner as any other credit card or debit card. However, behind the scenes, they are pretty different. While credit cards or debit cards can be used to pay for almost any goods or service, fuel cards work as a type of loan for petrol. The drivers in your team can only use these cards for buying fuel and nothing else. Therefore, you can be assured that they are not spending money allocated for fuel expenses elsewhere. Fuel cards are highly impactful for the bottom line of a business and make everyday activities easier for everyone involved.