A trucking company has a lot of expenses, but perhaps the biggest is gas. Businesses and their employees use fuel cards for fuel, vehicle maintenance, and related expenses, providing enhanced security, spending controls, expense tracking, and sometimes discounts or rewards.
What Are Fuel Cards?
Fleet gas cards are specialized business cards that allow fleet owners, drivers, and owner-operators to manage fuel-related expenses. In addition, most fleet cards come with additional benefits and discounts on tires, retreads, maintenance, and roadside assistance. Some business fuel cards may also qualify for special rewards in participating businesses such as restaurants, supermarkets, and shops.
Business fuel cards can become highly effective tools to streamline administrative processes, cut down on fuel-related expenses, and reduce fraud. Fleet owners and operators enjoy significant benefits from using a fleet card instead of a traditional credit card to manage fuel expenses and vehicle maintenance.
How Fuel Cards Work
Fleet gas cards are specialized credit lines allowing fleet companies to streamline fuel purchases. Business fuel cards work with gas stations and participating merchants to provide fuel and other related services.
These cards allow business owners to increase fraud protection by using specialized controls and reporting methods such as driver ID and mileage verification. Business fuel cards allow fleet owners to automate administrative processes, leading to more efficient fleet management.
How Fuel Cards Help Save Money
Fleet cards save money through improved management controls and streamlined administrative processes. But that’s not the only way business fuel cards lower costs. Here are eight ways that fleet fuel cards can help your business save money.
Discounts at the Pump
Business fuel cards come with special deals at participating gas stations. In particular, fleet fuel cards offer discounts and rebates at the pump. Some fleet fuel cards offer an average savings of 6 cents per gallon at its more than 14,000 nationwide locations. Special deals and discounts also apply to other services such as food, lubricants, and vehicle washes.
Fuel Cost Monitoring
Fleet fuel cards offer comprehensive reporting features that allow business owners to track fuel-related expenses easily. Fleet cards also let you set specific limits on spending or “fuel only” restrictions.
Automatic Reporting
Gas cards generate daily, weekly, and monthly reporting, enabling fleet managers to precisely calculate how much they spend on fuel. The best part of automatic reporting is the time it saves fleet managers since they no longer need to generate expense reports manually.
Additionally, business fuel cards generate real-time updates every time someone uses the card. These features help fleet managers stay on top of any potential fraud issues.
Staying on Top of Cash Flow
Fleet cards allow fleet managers to stay on top of cash flow management thanks to automatic reporting. Business fuel cards improve cash flow management by placing spending limits and enabling top-ups as needed. As a result, business owners and operators can avoid overspending and fraud.
Vehicle Tracking
Fuel cards come with added security features, such as notifications every time it’s used. These notifications alert fleet managers every time the card is used, the location, and vehicle. As a result, fleet managers can easily track vehicle location and spending.
Fraud Protection
Fleet cards enable fleet managers and business owners to crack down on fraud. Fleet managers can enhance fraud protection by using enhanced controls, notifications, spending limits, and real-time tracking. Fleet managers can get comprehensive data on the location, vehicles, and drivers using cards. If fleet managers suspect any fraud, they can block cards or suspend a driver ID at once.
Spending Limits
Fleet fuel cards offer robust security features such as spending limits. Fleet managers can assign how much money or how many gallons drivers can spend at any time. Spending limits help fleet managers control costs while cutting down on fraud.
Reduced Risk of Overdraft
Fleet cards reduce the risk of overdrafts by capping spending limits. Once the spending limit has been reached, the card cannot be used. This feature avoids overdrafts of company credit lines, ensuring cost-savings through reduced overdraft fees.
Fuel Card Customization & Why It’s Important
Fleet card customization aids in avoiding overdraft fees, protecting finances, analyzing spending habits and preventing unauthorized spending. Without fuel cards, it can be challenging for managers to identify unusual spending, given that many fleets require complex transactions. It could take weeks or even months to spot suspicious or unauthorized behavior.
By setting spending limits and clear authorization for what types of transactions are permitted, you’ll make your team’s job easier and protect your finances. Using fleet credit card customizations and controls is like having someone watching every transaction around the clock.
How To Customize Fleet Fuel Cards
Fuel cards are outstanding tools for securing fuel discounts and managing expenses. You’ll just want to customize the settings to protect your finances and avoid unauthorized use.
Here are some of the most important customizations you can set up to get the most out of your fleet fuel card.
- Real-time Alerts: Only 54% of businesses are somewhat confident they could detect fraudulent activity in time. Having the right resources can increase your confidence in detecting and stopping fraudulent credit card activity before your business has to pay the price. Turn on alerts for suspicious behavior. You might also want alerts about expenses above a certain threshold to give you a clear view of spending.
- Unique Reporting: Unique reports can make accounting simpler and provide your team with the information necessary to manage your finances with ease. Request reports that include all transactions or specific types of transactions to review where your money is going. You can categorize and understand your expenses. Seeing subsets of spending types might also further aid in preventing fraudulent activity and detecting unauthorized use cases.
- Purchase Spending Limits: The clearer you outline permitted spending types and limits, the easier it will be to prevent unauthorized use of your fleet card. Customize purchasing limits and consider limitations for use, such as the time of day, days of the week, and maximum gallons of fuel per week. These controls will prevent fraud and help your company maintain a budget by preventing overspending.
- Flexible Card Settings: Fleet spending needs are constantly changing. Before you sign up with a fuel card provider, ensure that you’ll have full control over the card’s settings to make changes as needed. Whether you want to add or remove restrictions on spending, you should be able to do so from the admin panel on your card. That way, you only pay for the services you need as your business ebbs and flows. When gas prices or routes change, so should your fuel card settings.
- Security Control: You should be in total control of whether your fuel card is on or off. You can activate and deactivate cards as needed from your dashboard to ensure your team is using them correctly. Or if a team member leaves your company, you can quickly deactivate their card to avoid covering their expenses for a competitor’s load.
- Location Restrictions: Most drivers take on the same routes week after week and month after month, and many regional carriers only serve a specific territory. If those situations apply to your business, setting location restrictions for your fuel card can provide additional protection. Whether the location is specific to the lanes each driver runs or the states where your company operates, making sure the card can’t be used outside that area can reduce the chance of fraud.
Benefits of Fuel Cards
Now that you have a clear understanding of how fuel cards work and who can use them, check out some of their benefits.
Security
This benefit is advantageous for larger companies. Whoever manages the cards can control who uses them, what they buy, where they swipe the card, and their spending limits, among other security measures. This is a great feature if you’re an owner-operator giving fleet cards to your network of drivers.
Savings
There are many ways to save money with cards besides fuel discounts, although this is usually the most substantial savings. Many cards don’t charge transaction fees and help drivers find the cheapest fuel near their current locations. Some cards also offer discounts on maintenance and tires and provide some type of roadside assistance program. There are even cards that provide cash back on purchases at hotels, restaurants, and other places you may need to stop on the road.
Visibility
Fuel cards are seamlessly integrated with online programs and mobile apps, guaranteeing instant and accurate documentation of every transaction. This transparency not only fosters trust between drivers and owner-operators but also greatly simplifies budgeting and expense management, ensuring every cent is accounted for and eliminating discrepancies that may arise at the end of a job or month-to-month.
Documentation
Many fuel cards offer software that gives you easy access to International Fuel Tax Agreement (IFTA) reports, streamlining documentation processes. You can usually view and download reports online and access them anytime you need. That way, you won’t spend hours trying to calculate your fuel tax. It’s already done for you.
Benefits of Fleet Cards for Business Reports
Now, let's delve deeper into the benefits of fuel cards in the context of business reporting:
Streamlined Expense Tracking and Reporting
The traditional method of tracking and reporting fuel expenses involves collecting receipts, manually entering data, and reconciling the information with accounting records. This time-consuming and error-prone process can be streamlined with the use of fleet cards.
Automated Data Collection and Report Generation
Fleet fuel cards automatically record transaction data such as the date, time, location, and cost of each diesel purchase. This information is readily accessible to fleet managers through an online portal or a dedicated mobile app, allowing them to generate reports in real-time and with just a few clicks.
This automation of data collection and report generation significantly reduces the time and effort required for business reporting.
Improved Accuracy and Reduced Errors
The manual entry of fuel purchase data is susceptible to human error, leading to inaccuracies in expense tracking and reporting. Diesel fuel cards eliminate the need for manual data entry, ensuring the information is accurate and up-to-date.
Real-time access to transaction data enables fleet managers to quickly identify discrepancies or unauthorized purchases. This level of oversight promotes information accuracy while helping to prevent fraud and reduce fuel-related costs.
Enhanced Budgeting and Cost Management
Fleet fuel cards help managers gain valuable insights into their vehicles' diesel consumption patterns. This data can be used to identify trends, spot inefficiencies, and implement fuel efficiency measures, ultimately leading to cost savings.
Since fuel cards can be customized with spending limits and restrictions, fleet managers have greater control over fuel expenses and easier budget management.
Integration with Fleet Management Software
Many fuel card providers offer seamless integration with popular fleet management software solutions. This integration enables businesses to centralize their data and generate comprehensive reports on various aspects of fleet operations like vehicle maintenance, driver performance and route optimization.
The ability to consolidate fuel expense data with other fleet-related information provides fleet managers with a holistic view of their operations. This comprehensive insight allows them to make informed decisions and implement strategies that improve overall efficiency and cost management.
Other Ways To Use a Fleet Fuel Card
In addition to the features listed above, some fuel cards offer these additional perks:
Fleet Maintenance
Maintaining regular fleet maintenance is crucial, and specific fleet fuel cards provide coverage for designated maintenance locations and roadside assistance. Some fleet fuel cards offer the flexibility for fleet managers to set different purchase restrictions per card, such as transactions for both fuel and maintenance or fuel-only transactions.
Managers have the option to set up a fuel credit card that covers expenses related to preventative maintenance, oil changes, parts, and repairs. These expenses are directly charged to the company account, simplifying the payment process and ensuring efficient management of fleet maintenance costs.
Convenience Stores
Fleet managers and owners can authorize their employee fleet fuel cards to be used at any national or local gas station in the United States to purchase fuel and other services. Business owners can choose which transactions to approve when registering for fleet fuel cards.
While some fleet credit cards can only be used for fuel and maintenance, others allow cardholders to make purchases at gas station convenience stores. This benefit includes trucking-related expenses such as lubricants and engine oils, drinks, or snacks.
Truck Washes
Fuel cards are a convenient means of payment because most drivers use them mid-journey. Drivers don't have to be concerned about covering truck-related costs, such as truck washes, with their own money or pocket cash. Because of this, drivers can keep up with truck maintenance and cleaning.
The transaction will be directly recorded on the business account, making it clear who used the card, when, for what, and how much they spent.
Tolls
With a customized fuel card, drivers have the ability to pay for tolls. Fleet managers can authorize specific driver cards to cover toll fees along their routes. These toll charges are then consolidated into a single business invoice, helping owners-operators efficiently manage costs.
Certain fleet fuel card providers also offer guidance on the necessary registration processes required by toll operators, ensuring compliance and smooth operations.
Other Authorized Purchases
Fuel cards can generally be divided into three categories: universal cards, fleet cards intended for use with commercial vehicles, and branded cards issued by specific fuel companies. Each type of fleet card has various benefits, and one doesn't necessarily have an advantage over the other. Choose the card s your business needs, size, and structure.
How to Choose the Right Fuel Card
Picking the best fuel card is a critical decision. With several options available from various providers, it's important to choose a card that aligns with your business's specific needs and operations.
Assess Your Business Needs
Start by evaluating your business's fuel spend and where your fleet typically fills up.
Do you have drivers crossing state lines or international borders? What's the average size and MPG of your vehicles? How large is your fleet?
Knowing these details will help you determine what features are priorities for your business.
Consider Card Acceptance
Not all fuel cards for trucking are accepted at every fueling station. Some are only accepted at specific brands, while others may be part of a network that includes multiple brands. Ensure the card you choose is widely accepted within the regions where your fleet operates.
Look for Additional Features
While the main function of a fuel card is to facilitate fuel purchases, many cards offer additional features like discounts on vehicle maintenance, cashless toll payments, and the ability to purchase non-fuel items like food and supplies.
Compare Fees and Interest Rates
Like any financial product, fuel cards for truck drivers come with fees and, in some cases, interest rates. Be sure to compare the fine print regarding annual fees, transaction fees, and any other costs associated with the card.
How to Apply for a Fuel Card
Once you've selected a diesel fuel card, the application process typically includes the steps below.
- Gather required information: To apply for a fuel card, you will need to provide information about your business such as its legal name, physical address, and tax ID number, as well as information about the vehicles in your fleet and the drivers who will have access to the card.
- Complete the application form: Most fuel card applications can be completed online or by phone. The form will ask for the information you gathered in the previous step. It's important to be as accurate as possible to avoid delays in processing.
- Wait for approval: Once you submit your application, it will be reviewed by the card provider. This process typically involves a credit check, especially for business credit cards. If everything checks out, you will receive approval, often within a few days.
- Activate your card: After approval, the provider will send you your new fuel cards. Once you receive them, you'll need to activate each card, typically by calling a toll-free number before use.
FAQ
Is it better to use a fuel card or a credit card?
Fuel cards are better than credit cards for truck drivers and owner-operators because they can include rewards tailored to these professionals and features like IFTA reports.
How hard is it to get a fuel card?
Most companies are eligible for a fuel card, though they may have limited options if they have poor credit or are a newer company. Fuel cards will often look at bank statements and other documents for a full look at your company’s financials.
Are fuel cards free?
Fuel card fees vary by card. Some cards may charge monthly membership fees while others charge annual fees or transaction fees. Research different cards to understand their fees and potential charges before opening an account.
Can anyone get a fuel card?
All businesses are eligible for fuel cards, regardless of the company’s size. You could be part of a trucking company with a fleet of 1,000 or a self-employed driver. It’s essential to know the minimum monthly spending amount on a gas card to ensure you can meet it. The minimum is usually around $500 to $1,000, depending on the card.
Is a fuel card a credit card?
Some fuel cards are also credit cards. The financial institution will provide you with a credit limit and will expect you to pay down the statement monthly. These cards will also charge interest and late fees, though they can also provide rewards. Other types of fuel cards are prepaid cards, where the card owner loads the card with money and can only spend that amount.
Can you get a fuel card with bad credit?
It is possible to get a fuel card even if your business is struggling with credit checks or hasn’t had a chance to establish good credit yet. Your options may be more limited, and what's available to you may not have as many features and benefits. Some card issuers may also look at your bank statements and spending for a better understanding of your business’s finances.
Is fuel cheaper with a fuel card?
Yes! Many gas cards offer discounts or cashback on fuel purchased in their network, so fuel is substantially cheaper when you visit their gas stations. Savings can range anywhere from a few cents per gallon to over 50 cents per gallon.
Can a sole trader get a fuel card?
Yes, sole traders can obtain fuel cards, enjoying similar features and benefits as larger companies, but they should note that the minimum monthly usage requirement still applies, so review the terms carefully before opening an account.
