What is a fuel and fleet card?
A fuel card, also referred to as a fleet card or a fuel and fleet card, operates like a credit card and is primarily used for purchasing fuel or diesel for your business’ transportation. It’s highly useful for people who need to regularly operate cars for their business. Industries with employees who frequently drive cars for their business include food delivery, plumbing and maintenance or outside sales employees.
As soon as your employee makes a payment with their fuel card, it charges directly to your company, and many cards allow you to easily track these payments and receive rewards when you buy a certain amount of gas.
Advantages of using a fuel card for your company
Having employees use fuel cards for their gas and diesel purchases increases the efficiency of your finances and operations. Here are some main advantages to using a fuel and fleet card:
- Get detailed information about each fuel purchase.
- Ensure your employees are only making vehicle-related purchases.
- Receive volume discounts and rewards for buying gas.
- Reduce the need for your employees to make cash purchases or keep receipts.
Features of fuel and fleet cards
Common features of fuel and fleet cards include:
Simple use at the pump
The fuel and fleet cards act as basic debit and credit cards. Employees swipe the card at the pump and follow the directions listed on the screen. They’ll type in the unit number, trip number or driver number their employer provides.
Online purchase tracking
When the employee uses the fuel card, you’ll see detailed information regarding the purchase, including:
- Amount of gas the employee purchased
- Date, time and location of the purchase
- Name of the employee who purchased it
- Odometer reading of the vehicle
This gives you advanced control over who uses the cards and what they purchase. For instance, you can use the tracking feature to ensure they’re not using the card on personal expenses, like snacks or gas station souvenirs.
Rewards for regular usage
Using fuel and fleet cards helps your business save money when you make large gas purchases. Many fleet cards offer volume discounts, so if your business uses several drivers, you’ll save on a majority of their gas purchases. Discount rates often vary depending on the fuel and fleet card company you use, but some even offer an average savings of 12 cents per gallon.
Automatically registers purchases
When employees purchase fuel, you have instant access to the amount spent. This eliminates the need for your employees to collect receipts and receive reimbursements for the purchase. Your financing processes become much more efficient and less tedious, giving your accounting team more time to focus on big picture tasks.
