Whether you’re just starting out or have years of experience managing fleets, you know that gasoline accounts for over 30 percent of your operational budget. To be sure, gas is to cars what air is to us. Therefore, in order to maximize profits and output, fleets must employ careful management of this recurring cost. It is also one of the most variable costs, where even little changes may have a huge impact on the bottom line. The price of gasoline is also influenced by factors outside your control, such as the economy, government policies, and regulations. One of the most common ways a fleet may reduce its fuel costs is through the use of Fuel cards.
What is a fuel card?
Fleet cards, sometimes known as fuel cards, are a form of credit card that may be used to refuel a company’s fleet of cars. It’s not like a regular credit card because you can only use it for things like gas and auto repairs. Gasoline cards are often issued by big fuel corporations and may be used at a variety of gas stations.
The major benefits of utilizing a fleet card are its practicality and its ability to cut expenses. Businesses might benefit from using fuel cards to save money on gasoline expenditures over time due to the discounts offered by these cards. Also, fuel cards can be more practical than cash for buying gas because it takes less time and effort to use a card to pay for gas than it does to get cash out of an ATM and carry it about.
Overall, a fleet fuel card is the best option if you’re seeking for a simple way to buy fuel for your business that also helps you save money, stay under budget, and enjoy additional bonuses.
A Fuel Card Seems Unnecessary; Why Should I Get One?
Let’s pretend you’re a long-haul trucker transporting fragile goods across the country. You need to fill up on gas and wash your truck because it’s filthy and you’re low on both money and resources. The local gas costs are more than you anticipated, and they’re just going up from here.
Fuel cards are a lifesaver when you need to refuel but don’t want to spend all of your washing money on gas. Gas stations that accept fuel cards offer discounts on gasoline purchases made with the card. Truckers’ lives may be made much easier by fuel cards, which provide them access to inexpensive gas and other amenities, such as free or reduced-price car washes.
However, how exactly do fuel cards function?
The Workings of It
Fuel businesses are the ones that issue fuel cards, and those cards can be used at any gas station that accepts that fuel card’s brand. But you should know that many of them include hidden costs, such as for initialization or maintenance.
Swiping a gasoline card at the pump will automatically take the cost of the fuel from the card’s balance.
When the balance on your prepaid card gets low, you can easily top it off by adding money online or over the phone. It really is that simple.
So, don’t be hesitant to adopt a gasoline card if you manage a fleet or frequently drive cross-country for work.
Fleet Fuel Cards Have Several Advantages
If you’re in charge of a fleet of automobiles, you know how crucial it is to monitor employee spending. One of the biggest costs for any company whose operations include transportation is fuel. So, it’s important to watch this cost closely. You may achieve this with the aid of fleet fuel cards, which eliminate the need to use a credit card and reduce the risk of their being misused.
Fuel cards provide several advantages, including monetary ones. Fleet managers need to keep an eye on fuel use in light of the ebb and flow in gas prices in order to spot any discrepancies. Employee expenditure may be monitored, data patterns analyzed, and reporting simplified with the use of fuel cards. Managers of fleets can protect their customers’ cards from being abused and reduce the likelihood of fraud by setting up warnings. Discounts of up to 20 cents per gallon are also available. Due to the ever-increasing cost of gasoline, this is a major factor. That ends up saving a lot of money in the long run.
In addition, many fleet gasoline cards provide discounts on vehicle maintenance, allowing you to keep your cars running well while lowering your overall fuel expenditures.
Time can also be saved with the help of fuel cards. The gasoline card’s ability to be tracked and reported on may greatly facilitate management tasks, shorten reimbursement procedures, and minimize paperwork. Drivers may also rest easy knowing they won’t be limited to a certain gas station chain when they have a fuel card because they can be used at any gas station.
A few of the most popular advantages of using a gasoline card are as follows:
- Lowered gas prices
- Offers on Auto Repairs
- Discounts on Truck and Car Washes
- Sales prices in stores
- Auxiliary services for motorists
- Restraints on spending
- Keeping tabs on gas money
- Protection against the cost of fuel purchases
- Ease of Shopping
In addition to helping you keep tabs on employee spending, fleet fuel cards may also help you save money on gas and auto maintenance.
Comparing Credit Cards with Fuel Cards
The monthly fuel budget is typically the primary consideration for firms thinking about switching to fuel cards for drivers. If your fleet consumes more than 1,000 gallons of gasoline per month, you should utilize a fuel card so that you can take advantage of rebates. Fuel credit cards might be more convenient for fleets that don’t consume quite so much fuel each year.
Things to Think About Before Buying a Fuel Card
Choosing the right fleet gasoline card might be confusing, so you’re not alone in that feeling. Choosing the best solution for your company from among the numerous available possibilities might be challenging. When choosing your choice, think about these factors.
Analytical Fueling
Fuel data, including price per gallon, fuelling location, driver ID, and odometer readings, may be captured by several fleet cards. Fleet managers may now examine fuel costs and locate areas for enhancement.
Keeping tabs on the money
Gasoline financials under one digital dashboard helps reduce or eliminate the need for hard-copy fuel receipts, saving time on accounting administration. Inputting odometer readings at the gas station is a great way to keep track of how much gas each car consumes. Spending can be more easily tracked, patterns can be observed, and reports may be generated with the help of financial tracking.
Discounts
Discounts at gas stations are only one perk of using a fleet fuel card. In most cases, discount cards save you a few cents a gallon, but others can save you as much as 45 cents. However, larger savings sometimes come with a more limited network, so it’s important to compare cards carefully.
Finally, certain cards provide extra savings on in-store purchases and repairs.
Managers of fleets may save money and increase productivity with the help of fleet cards. As a result, it is crucial that fleet managers thoroughly investigate discounts when choosing a gasoline card for their company. There’s a chance you’ll be pleasantly pleased by how much money you can put away.
Coverage
When choosing a credit card, it is crucial that it be accepted anywhere you plan to use it. Managers of fleets need to give serious thought to whether or not their cards will be accepted at gas and service stations.
Fleet cards may only be used at select gas stations to earn savings. Make sure the stations you use most often or that are convenient to your regular fleet routes accept the card you use. As an added bonus, most fleet gasoline cards may also be used to pay for repairs and maintenance, allowing you to consolidate your vehicle-related costs onto a single payment method.
Make sure your card functions properly and is accepted at the gas stations and service centers you’ll be visiting, whether it’s a universal card or one with a limited network. You won’t be able to take advantage of the card’s perks if you don’t use it.
Reporting
Fleet managers need to think carefully about fuel cards. Logging fuel use is a crucial part of the equation. After all, gas is one of a fleet’s major costs. It might be challenging to monitor gasoline expenditures and spot opportunities to save expenses without proper reporting. Thankfully, most fuel cards provide thorough fuel consumption information that may save time and money for fleet managers.
Fuel taxes may be readily monitored and paid because many fleet fuel cards have complete integration with IFTA reporting. Among the numerous factors to think about when shopping for a new fuel card, a fleet manager should place a premium on tracking fuel consumption and submitting IFTA reports.
Size of the Fleet
Your fleet’s size is another consideration when selecting a fuel card. However, some cards have spending caps or are only valid for a specific number of vehicles. Before choosing a card, make sure you meet all of the conditions. As the manager of a fleet, you must make a crucial decision while picking a gasoline card. Gasoline cards not only make it easier to make fuel payments and keep tabs on fuel consumption, but they also assist save money on fuel costs and cut down on administrative costs.
However, some gasoline card providers don’t mention that their cards aren’t a good fit for smaller fleets. Make sure you understand the parameters of each card before making a final selection; for example, some cards have minimum spending restrictions or are best for bigger fleet sizes. Finding a gasoline card that is ideally suited to your company’s needs is essential whether you operate a small or medium-sized fleet. Some credit cards, for instance, call for a certain amount to be spent each month or an annual revenue threshold that may be unattainable for smaller fleets. In addition, if you need access to specific services only available in specific areas, the selection of service stations might be vital.
When it comes to selecting the best gasoline card for your company, size does matter. Spending some time thinking about what features are most important to you and your fleet will help you choose the ideal fuel card.
Security
It’s important for fleet managers to think about fuel card safety features when selecting a fuel card. Before approving a transaction, some cards demand driver identification and odometer readings in addition to using data on the driver’s location and the fuelling station.
Before approving a transaction, some take into account the driver’s and station’s geolocations in addition to data from the Engine Control Unit (ECU). When it comes to preventing the fraudulent use of lost or stolen cards, this is a very useful feature to have. The ability to monitor and manage gasoline costs with more precision is made possible by tools like these, which give a more complete picture of each driver’s consumption patterns and habits. They are also useful for preventing dishonesty among drivers and the misappropriation of business finances.
When all factors are taken into account, fleet cards with strong security features may aid fleet managers in getting the most out of their fleets while keeping costs low.
Vehicle Type
The kind of cars you own should be your first consideration when assessing cards. The fleet you employ can affect your purchasing selections, whether you run a transport business, a nationwide sales force, or a small fleet of various types.
Since hauling presents its own unique obstacles, it is wise to select a card that focuses on HGV-friendly locations to maximize efficiency. If your fleet is mostly comprised of saloon cars, adaptability is essential. Sales drivers need the security of knowing their cards will be recognized worldwide because their work schedules are often changing.
Future Plans for the Company
The demands of the organization at the present time are important, but you also have to think about the future. Take a look into the future and imagine what your business will need from a gasoline card in five years. What about five years from now? Think about the rewards you’ll need if you succeed. Planning for expansion can help you save both time and money.
Conclusion
Fuel cards let fleet managers keep tabs on expenses, reward good behaviour, and boost driver productivity. It’s possible to choose from a wide range of gasoline cards, each of which provides unique benefits. Think about your fleet’s demands and your goals for a fuel management solution before settling on a fuel card.
