A fuel card, often referred to as a fleet card, is a specific type of corporate credit card provided by businesses to employees who operate company vehicles. These cards are primarily used for gasoline and diesel purchases, ensuring that all fuel expenses are traceable and manageable.
Employees have the option to use their company-provided fuel card to cover gas expenses directly, eliminating the need to pay upfront themselves and later seek reimbursement by submitting receipts. This streamlines processes and saves time and effort for both the driver and the company.
In contrast to a standard business credit card, which can be employed for various purchases, a fuel card is restricted solely to purchasing fuel, making it an efficient tool for managing fuel-related costs.
What Various Kinds of Fuel Cards Are Available?
A variety of fuel cards are available as products from large service station chains linked to prominent oil companies like Shell and Wawa. Additionally, there are other fuel card options offered by companies, such as WEX Inc, which focus primarily on supplying fuel cards as their core business, often incorporating fuel discounts as a key feature.
While commonly called “fleet credit cards,” the majority of fuel cards are actually charge cards, requiring full payment each month. On the other hand, some fuel cards do permit companies to carry a balance from one month to the next; however, these typically provide lower rebates. Fuel purchases through these cards sometimes include incentives like cash back or other fuel savings, further reducing costs.
Certain fuel cards, known as “open loop” cards, are accepted at almost any gas station. Some cards, known as “closed loop” cards, are restricted to usage or provide discounts solely within a network of gas stations linked to a specific company, which can be particularly advantageous if specific truck stops are frequently visited by your fleet.
What Are the Benefits of Utilizing a Fuel Card for Small Businesses?
Utilizing a fuel card can lead to substantial cost and time savings if your business manages a fleet of company vehicles, as it centralizes all fuel-related financial transactions.
Fuel cards frequently offer discounts or cash back on transactions at specific gas stations. Although the savings are typically just a few cents per gallon of fuel or per dollar expended, these benefits can accumulate over time to result in substantial savings, especially during periods of fluctuating fuel prices.
Employing fuel cards can also lessen the administrative burden associated with managing a company fleet. With fuel cards, managers are relieved from gathering and processing receipts and issuing reimbursement checks to drivers, as all expenses related to fleet fuel and maintenance can be monitored through a single statement.
Fuel cards provide significantly enhanced security over issuing every driver a company credit card, as they are exclusively usable at service stations and often permit managers to implement spending limits, an essential feature in managing fuel costs efficiently.
Universal Acceptance
When selecting a fuel card for your business, it’s crucial to remember that not every fuel card is accepted at every gas station. Knowing where most of your fleet’s fuel purchases will occur is essential.
When evaluating two cards like Fuelman and Shell Fleet Plus, the decision might ultimately depend on which gas stations are more prevalent in the region where your company’s fleet is active and the specific fuel prices and discounts they offer.Fuel cards with an open loop system can be utilized at any gas station, allowing employees to fill up at the most convenient locations. This flexibility is particularly useful for truckers on the road, who need to maintain control over their fuel expenses while ensuring efficiency on their route. It effectively eliminates concerns about wasting time and fuel by detouring to locate a station that accepts their card, permitting seamless fuel billing transactions anywhere within the U.S.
Top fuel cards offer business owners and fleet managers comprehensive data on the timing, location, and usage amounts, delivering this information in almost real-time. This data is crucial for truckers who need to manage their schedules and routes efficiently across the vast U.S. road network, potentially reducing transaction fees.
Regular Discounts
Certain fuel cards mandate that your business must reach a minimum expenditure to be eligible for rewards, while others limit rebates to a specific amount. This mandates careful control of your spending, especially for trucking companies with multiple vehicles on U.S. roads.
Evaluate your business’s anticipated spending before choosing a fuel card to ensure you receive regular rebates and avoid losing benefits by spending either excessively or insufficiently. Proper evaluation of these factors can help truckers and their employers achieve optimal financial health when on the road.
Here is a summary of several typical fuel card options, compiled using resources and materials that are publicly accessible. To obtain the latest details, contact the fuel card provider directly. These summaries help trucking businesses in the U.S. make informed decisions about fuel billing control and management.
Leading Fuel Cards
WEX provides an extensive selection, with over 50 card options, catering to small business fleets, trucking companies, government fleets, and more. For truckers, this variety ensures that billing and control mechanisms can be tailored seamlessly to road demands anywhere in the U.S.
Advantages
- “Acceptance in an open system”
- Instantaneous reporting
- Strong expenditure management measures
- Beneficial combinations
Drawbacks
- May not be ideal for new businesses because of credit prerequisites.
- Unavailable in North Dakota, South Dakota, Nevada, and Canada.
WEX is a company specializing in payment processing and solutions, often recognized for fuel card services.
WEX provides managers with the capability to monitor expenses per driver and establish spending limits according to factors such as the driver, the amount spent, and the time of day. This feature allows for precise application of control, ensuring that trucking operations remain streamlined and cost-efficient on U.S. roads.
Additionally, companies can benefit from savings on items like fuel and tires through discounts offered by merchants within the WEX network. These benefits are vital for businesses that manage a variety of vehicles, from trucks to cars, ensuring that the engine performance remains optimal and the fuel pump functionality is maintained efficiently.
WEX fuel card users can also access GPS vehicle tracking, enabling managers to identify the real-time locations of vehicles and assess driver performance, idle periods, and various other metrics. This flexibility is crucial for maintaining high standards of fleet efficiency and reducing unnecessary expenses.
WEX collaborates with numerous major gas station chains to manage their exclusive branded fuel cards. Through these partnerships, they can offer competitive interest rates and possibly even waive certain fees for frequent users.
Fuelman provides various plans to help manage fuel and maintenance expenses for both business and government vehicle fleets. Additionally, Fuelman offers tailored solutions specifically designed for businesses that operate solely with diesel vehicles, as well as options for electric and carbon-neutral fleets, ensuring that each vehicle, whether a car or a truck, runs smoothly with a well-maintained engine.
Advantages
- Recognized at 95% of gas stations across the United States.
- Sophisticated expenditure management
- Comprehensive, personalized reporting capabilities
Drawbacks
- A “restricted-use” card
- There is no specific account manager assigned for customer service.
- A variety of charges
Wawa’s Fleet Card
Similar to other well-liked choices, this fleet card provides spending controls through the use of PINs at the fuel station and features automatic expense reporting. The ability to maintain flexible spending limits is a key ingredient in managing costs effectively.
Through the SmartHub app, customers have the ability to oversee their Wawa fuel card, search for driver IDs, deactivate lost or stolen cards, and process payments. This app-driven interface allows for seamless management of fuel expenses and card security.
In collaboration with WEX, Shell offers the Shell Fleet Plus card, one of the various fuel card choices available for businesses through its chain of gas stations. Beyond just Shell stations, it also provides discounts on services at select Jiffy Lube outlets.
Advantages
- An excellent option if Wawa is your favored chain of gas stations.
- Capability to establish controls based on the card or the driver
- There are no fees for setup, annual charges, or the card itself.
Drawbacks
- Alternative fleet cards provide greater rebates.
- Restricted usability beyond Wawa locations.
Shell Fleet Plus
Shell Fleet Plus provides tiered discounts depending on the monthly fuel volume purchased by your business, offering up to six cents per gallon at the top tier. These savings can accumulate significantly over time, enhancing overall business financial health.
Moreover, Shell Fleet Plus offers features for managing expenditures and guarding against fraud, which are now standard expectations for fleet managers. These include several types of purchase restrictions, driver identification, and the capability to promptly deactivate cards that are lost or stolen.
Choosing the ideal fuel card for your business can be perplexing, especially when weighing the benefits of one choice against another, such as comparing the Shell fuel card with the Wawa Fleet option. Considerations such as interest charges, fee structures, and the overall flexibility of the card can influence your decision.
Advantages
- An excellent option if your company vehicles frequently operate near numerous Shell stations.
- Safeguarding against fraud using driver PINs
- Provides discounts
Drawbacks
- Restricted acceptance beyond Shell service stations.
- There is no assigned account manager.
- A tiered rebate structure implies that the amount of benefit your business receives from rebates can fluctuate.