The simplest definition of a fuel card is that it is a payment method used to pay for fuel consumed by company vehicles. Business owners prefer it because it doesn’t require drivers to travel with lots of cash to pay for fuel, which is a security risk on its own. Also, drivers will not need to claim the money they used to pay for gas, something that can take several weeks.
A fuel card works the same way as an ordinary credit card. With fleet cards, businesses can pay for fuel and repair and maintenance of their vehicles, provided they do so in authorized fuel stations and other merchants.
Also, your fleet card supervisor has access to all the details of each transaction which saves time and money for your business. Finally, fuel cards UK, unlike other cards, are quite easy to operate.
Why the need for a fuel card?
The biggest advantage of using a fuel card is that it helps businesses manage fuel and maintenance, saves money and time, and also allows business owners control to operate their businesses. Using a fleet card also earns you extra savings. That’s because fuel cards come with higher purchase controls that allow you to see a comprehensive transaction report by the driver.
How do fuel cards work?
Fuel cards have company names and vehicle registration. They also have magnetic strips that allow the capturing of data by providers. Also, they have a PIN that allows for a unique authentication process. In some fueling stations, vehicle registration, company name, and card signature may be verified before a driver is permitted to use a fleet card. This offers enhanced security. Supervisors can view fueling activity online. They can also observe odometer readings and driver ID.
Benefits of fuel card
Track driver and save fuel costs
Using fuel cards UK enables companies to reduce expenses and improve the productivity of their workforces, which increases business success. Most businesses turn to fuel cards as a way of managing costs and saving to control and monitor maintenance expenses.
Controls theft
With a volatile economy and ever-changing oil prices, some employees may be tempted to use the company money for their private use. This calls for careful monitoring of company theft. And while a fuel card does not offer total control over a driver’s purchases, they help companies to spot irregular access and avert it.
Complete reporting
A fuel card provides a detailed reporting system that offers information about each transaction that the driver makes. This is a big plus to the administrative side of the business as it lessens the managerial tasks considerably. Vital information can be gleaned from fuel cards UK reporting, for example, the drivers that have bad driving habits that result in costly maintenance and wasted fuel.
Driver support
Another advantage of fuel cards is that they provide drivers with crucial support. Assume that your drivers pay for fuel out of their pockets. They will then need to claim the money, which can take long before they receive it. Drivers using fuel cards will not have to spend their money and keep track of receipts to enable them to claim their money.
Vehicle maintenance
It is not uncommon to find fuel cards that offer maintenance services. Thanks to fuel card reporting, companies can track maintenance checks of a vehicle through monitoring mileage.
Discounts
Perhaps the biggest advantage of fuel cards is the money savings they offer businesses. They usually sell fuel at a price that is lower than the pump price by a few pennies. Although the savings might appear small, they can be quite significant if you fuel for a long time. Fuel card providers are able to offer lower prices because they have a connection with big networks throughout the country.
Convenience
Fuel card companies have a network of outlets that drivers can fill up at. Imagine not having to carry any cash at all, and being able to fill up at almost any location you are in. A driver only needs to show up at a gas station, fill up as normal, and then present their fuel card to pay for the petrol or diesel purchased. There is no need to carry cash.
The ability to set controls makes fuel cards more efficient
Fuel cards function in many ways like credit and debit cards but offer much more control. With these cards, you can set many parameters that go a long way to improving the card’s efficiency. For example, to curb fraud, you can set a limit on the maximum amount of fuel that can be filled up per transaction. There is also the ability to limit what the card can be used to purchase. If it is fuel only, you can spell that. Another thing is setting out the days of the week to use the card. That means employees cannot fill up outside the stipulated hours.
Track vehicles
By upgrading to premium GPS vehicle tracking, you can keep tight control of your vehicles. Tapping into the fuel card data of your car to give you extra insights, this card lets you:
- Know the real-time location of your vehicles
- Confirm the time spent by your vehicle at a job site
- Reduce your fueling and operational costs
- Identify excessive idling, speeding, or vehicles that operate outside the authorized hours
- Improve driver performance and safety.
Conclusion
Managers and owners of small businesses already have their plates full. Switching to the use of a fuel card eliminates the need to constantly track the vehicle and the amount spent on fuel. This allows them to focus on the core business of their companies as they don’t have to be concerned with the transportation sector.
Fleet cards are also efficient, save time, and offer a truckload of accurate and verifiable data that can help you to make key decisions as far as fuel efficiency is concerned.
Story by Konna Papazoglou
Share
Contributors
