A fuel card is a payment method for businesses that allow employees to fill up their vehicles for business use. They are essentially a credit card for fuel. Fuel cards offer networks of garages that accept payment and these vary depending on the fuel card used. Some fuel cards offer a discount on fuel prices as an incentive for use.
One major advantage of a fuel card is employees can only purchase fuel and vehicle-related services such as toll charges, tyres and windscreen replacement. This improves security and prevents fuel fraud where a driver/employee makes false claims.
Accounting is also simplified with fuel cards as HMRC VAT approved billing removes the need of processing manual receipts. Fleet efficiency can be improved by monitoring filing patterns and MPG. Billing paid within agreed time period is interest-free.
Budgeting for fuel costs within a company is made much easier as trends on fuel use can be mapped. The company can check the fleet or individual consumption of fuel easily to determine if vehicles or drivers are using their fuel efficiency.
Choosing a fuel card can be a laborious task with each offering slightly different benefits. Many fuel cards are issued by fuel suppliers themselves and it’s important to map fleet routes to determine an adequate availability of garages. If a wide network of garages is your preference then you may benefit from an independent fuel card company.
Another consideration when choosing a fuel card is the range and location of driving within the fleet. This may be local, national or include international travel. Fuel type (petrol, diesel or mixed fleet) and monthly budget also need to be factored in when making your choice.
There are many benefits for businesses using fuel cards and your choice of card will be largely determined by the factors listed.