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Fuel Cards or Credit Cards?

I have come across many people who are confused in terms of fuel cards and credit cards. Most will use the terms interchangeably. For someone who has been in the industry of ‘Business Fuel Cards’ for many years, it becomes imperative for me to make an effort in dispelling myths and notions about fuel cards and credit cards being one and similar.

Honestly speaking, both credit cards and fuel cards use the same underlying technology to deliver payments and manage credit. However, while the credit cards have much broader application in diverse financial segments, fuel cards have a very tight usage and are limited to the niche of management of business fuel expenses only. You can consider fuel-cards to be specialized credit and fuel management financial tool. I call it specialized because fuel cards bring a lot on the table, especially in terms of management of business fuel expenses and adding value to your business by integrating all fuel costs on one platform.

Fuel cards literally explode at the seams with the intrinsic value addition that they bring.

Overall fuel expense management becomes a breeze. With the availability of centralized management tools, the business owners find it easy to monitor, track and validate fuel expenses of the business across multiple vehicles, and areas. The management information system makes it possible for business owners to take remedial measures to check fuel expense related fraud and it also allows them to keep a tab on drivers as well.

In fact, fuel cards can be allocated for business use such that only specified drivers can avail it, or only specified vehicles can avail it or a combination of both can be used to limit scope of fuel pilferage. This means that your business fuel card is safe against any attempts of misuse by any of your drivers.

Unlike the accounting process and procedures that are used to expense out the fuel charges paid through credit cards, the business fuel cards help in consolidation of all business related fuel expenses on a single level.  This consolidation saves time for the accounting department and reduces the number of hours spent carrying out mundane tasks of collecting fuel charges from multiple credit card statements and validating them against the fuel receipts. On top of all this, the business fuel cards come with HMRC approved VAT invoices, making VAT reclamation a simpler process.

In effect, if you compare fuel cards with credit cards there are 3 add-on benefits that you get with a fuel card.

1. There is consolidation of all business fuel expenses across the organization at a single level, leading to better and effective cost control and a tighter control over fuel pilferage. The centralized reporting makes fuel cards a delightful accessory for business managers.

2. Its more secured because you can limit fuel card usage by driver, vehicle, fuel type or a combination of these factors.

3. You get to enjoy a chance of getting fuel at wholesale rates. This is something that no credit card can offer you.

All these reasons are compelling enough for business managers to take a decision towards transitioning their business from credit cards to business fuel cards. For those who are on the brink, we would love to grab a piece of your overall business.

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