Businesses typically use corporate credit cards for purchasing gas for their fleet. However, fuel cards offer higher savings than credit cards.For example, fuel cards offer discounts of up to 10 cents per gallon on fuel purchases and provide businesses with detailed reporting on driverspending and fraud protection. Combined with rewards offered by many corporate gas cards, fuel cards are a more cost-effective option than corporate credit cards for purchasing gas for a business vehicle fleet.
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What are Fuel Cards?
They are specialized credit cards that businesses and vehicle fleets can use to purchase fuel at a discount. Fuel cards typically offer rebates or discounts on gas purchases, making them a popular choice for corporationslooking to save money with large vehicle fleets.
Some cards offer additional perks, such as cashback or rewards points. Ultimately, the best fuel card for a business will depend on that business’s specific needs.
Company and corporate gas cards can also be used to track fuel expenses, manage budgets, and even streamline billing and invoicing. As a result, fuel cards can be a valuable tool for any business that relies on vehicles to complete their services or deliver their products
How Do Fuel Cards Work?
Fuel cards provide a convenient way to pay for gasoline and other automotive expenses.They are linked to a credit card or checking account and can be used at various gas stations across the country. Participating gas stations may differ per card so it is important to make sure that local fuel stations accept the gas expense card.
Some fuel cards also offer discounts on gas purchases, which can save cardholders money over time.In addition to gas, many fuel cards can also be used to pay for car washes, repairs, and other automotive-related expenses.When used wisely, fuel cards can be a helpful tool for budgeting and managing automotive expenses.
Fuel Cards Vs. Credit Cards: Which is More Helpful for Businesses?
When it comes to paying for fuel, most businesses have two options: fuel cards or credit cards. Both have pros and cons, but which is more beneficial for businesses?
The answer may surprise you.
Fuel cards have several advantages over credit cards. Here are some of them:
Discounts
Fuel cards offer discounts of up to 10 cents per gallon on fuel purchases. In addition, fuel cards provide businesses with detailed reporting on drivers and spending and fraud protection.As a result, fuel cards are a more cost-effective option for businesses that use corporate credit cards for purchasing gas for their vehicle fleet.
Lower interest rates
Corporate fuel or gas cards typically have much lower interest rates than corporate credit cards, making them a more affordable option for businesses. In addition, fuel cards allow businesses to track spending and set limits on employee spending.
Higher credit limits
One of the large benefits of fuel cards over credit cards is that they typically offer businesses higher credit limits than corporate credit cards. This is because fuel cards are designed for businesses with a high volume of fuel purchases. As a result, fuel cards can help businesses save money by allowing them to make larger purchases at once.
No Annual Fee
Most fleet cards for fueling do not typically have an annual fee, making them a more affordable option for businesses. In addition, company gas cards offer businesses various discounts and perks, such as rebates and cashback rewards.
Fewer Fees
The best perk of vehicle gas or diesel cards is that they usually have fewer fees than corporate credit cards. For example, many fuel cards do not have an annual fee, balance transfer fee, or foreign transaction fee. As a result, these cards can save businesses moremoney by reducing extensive fees.
Better fraud protection:
Corporate gas cards offer businesses better fraud protection than corporate credit cards. This is because fuel cards can track and monitor employee spending. In addition, these cards typically have built-in fraud protection features that corporate credit cards do not offer.
Flexibility
Cards designed specifically for fuel offer businesses more flexibility than corporate credit cards. Businesses can choose from various card options that offer different discounts and benefits. In addition, businesses can use most cards at any gas station, making it easy to find a convenient location for employees.
Driver Tracking
Card providers also offer businesses the ability to track driver spending. Fuel cards provide businesses with detailed reports on driver behavior, including mileage, fuel usage, and purchase history. This information can be used to improve fleet efficiency and reduce costs.
Reporting
In addition to driver tracking, cards intended for vehicle fleets also offer businesses detailed reporting on fuel usage and spending.
This information can be used to improve fleet efficiency and reduce costs. For example, businesses can use reports to identify patterns of excessive fuel consumption and take steps to address the issue.
How do Fuel Cards Return Higher Savings For Businesses than Credit Cards?
Fuel cards offer businesses a way to purchase fuel for their vehicles while also earning rewards.These cards are different from credit cards because they are specifically designed for fuel purchases and offer earned rewards, such as discounts on future fuel purchases or points redeemed for merchandise or gift cards.In many cases, businesses can save up to 10 cents per gallon on gas purchases. In addition, many fuel cards offer additional savings on items such as snacks and drinks at the pump.
Finally, using a fuel card can help businesses manage their expenses. By tracking spending with a fuel card, businesses can better understand how much they spend on fuel each month and make necessary adjustments to their budget. This can help businesses save money in the long run.
Business Benefits
Fuel cards offer businesses many benefits that corporate credit cards cannot match. Company gas cards provide businesses with discounts, lower interest rates, more flexibility, and improved security.As a result, gas cards are a more cost-effective option for businesses that use corporate credit cards for purchasing gas for their fleet.
