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Small fleets can benefit significantly from fuel cards by minimizing the amount of money spent on fuel and the admin expenses related to employees claiming fuel expenses. Irrespective of the size of the business, fuel cards are essential for all fleets, including the fleets with huge fuel bills. A company can improve its efficiency by using the best fuel card as it provides an integrated solution that can revamp the way one does business.
What is a fuel card?
Ideally, a fuel card is used to pay both diesel and petrol and other fuel products at fuel stations across the country. It is simple to use the fuel cards, as the driver has to give their card at the fuel station as a mode of payment after filling the fuel.
Small business fuel cards help businesses and also their employees to pay for fuel in both an efficient and secure manner. It will also help the company to manage and track their future requirements under a single account. Above all, the fuel card can be handed over to one staff member, and then that card is used to fuel up a vehicle. A small business has to settle fuel payment for a single account that has been designated for fuel charges.
Why should small businesses’ fleets use fuel cards?
There is a misconception that a small business fleet can’t use fleet cards as they need minimum fuel even though it is a fact, but that doesn’t mean the business can’t use a fleet card. Irrespective of the size of the market, fuel is one of the most significant expenses for small businesses in any industry. For example, your company runs company cars; then, the top management should allow the employees to use their vehicles for business or have some cars. It will be beneficial for both employees and the company to have a fuel card.
Generally, the fuel card can help the company save on a large number of expenses, maintain the business, and also take the hassle off those dusty admin tasks that load your table. Above all, the store also offers benefits, including natural and quick invoicing and payments. Furthermore, it is essential to choose a fuel card that meets your company’s goals and objectives and meets the requirements of a small fleet.
A card is suitable for your company if it provides you with a variety of options like the ability to take many cards for your employees without any extra charges. For some companies, you don’t need to pay for regular use also as you only need to pay for the pump price of the fuel utilized. Fuel cards give the employees a thoughtful piece as they don’t have to carry cash or file those paper receipts to get a cashback.
How much does a fuel card cost for a small business?
There are a lot of card suppliers that make cards that can be customized to the needs of a specific business. But many companies offer cheap deals too, so it can be challenging to cut through and select the perfect fuel card for your company. It is essential to know that many companies also charge extra fees, including sign-ups, the price per transaction, and monthly charges.
Can the small business start with the best fuel card?
It is a simple and easy process to apply for a fuel card. As you can visit the vendor’s web portal for more info and click “apply” available either at the top or bottom of the page, as it will promise you both a simple and secure online application. Furthermore, there are no additional requirements irrespective of the type of business one earns. After applying for the card, you can also avail of many other benefits, and it will save your business both time and resources as you don’t have to stress about collecting receipts. The fuel card invoices include everything from date, location, time to value. You can also claim your VAT back as the invoice will consist of broken down bifurcation of the VAT.
The management account also is managed online, and small businesses can set up some credit limits irrespective of the number of cards it holds.
Types of Fuel cards
- Universal fuel cards- These cards are one of the most popular choices of fuel cards as it has access to the majority of the fuel stations and the drivers can quickly fill up diesel or petrol with minimal stress. The maps also feature limited fueling by day or time of the week.
- Fuel credit cards- Under these cards, the purchase is limited to gas stations and some other merchant codes. Though purchase controls are available with fuel credit cards, they aren’t easy to customize.
- Major oil and Gas cards- Many branded oil and gas companies offer discounts on their websites. Furthermore, these cards can only be used at limited fuel stations, and often deductions are capped at a specific rate. So before signing up for such cards, you should go through the restrictions.
Benefits of using a fuel card
- Saves drivers time- One of the most important factors while choosing a fuel card is selecting a card that minimizes the amount of driver’s time.
- Reduce fuel costs- Fleets need to do the best possible things to reduce the price of fuel they pay per gallon as it is one of the organization’s highest expenditures.
- Minimize unauthorized spending of the driver- In a formal policy, the company should define the driver’s illegal expenditures. Some common examples in unauthorized expenditures include purchasing items other than fuel, purchasing higher grades of fuel or gas, or other expenses. You can minimize the risk by pinning the driver’s location, restrict fuel purchase, or set email alerts.
- Improve administrative efficiency- Ideally, the fuel card companies offer customer portals that allow the organization to manage their program, making the process easier for fleet managers, business owners, and administrators—essential features like the ability to view transaction data before bills are issued.