Katerina Swanson
The cost of fuel cards varies across different suppliers, with some suppliers charging transaction fees, replacement card fees, and sign-up fees. Fuelwise, for example, does not charge any account management fees, transaction fees, or fees for unused fuel. Some fuel cards are free and offer interest-free credit on fuel purchases. Fixed-price fuel cards guarantee a fixed rate for the week, while pump price cards offer other benefits. The best card for fuel is typically a general-purpose card that offers bonus rewards on fuel and other categories, rather than a branded gas station card.
Fuel Card Characteristics and Values
| Characteristics | Values |
|---|---|
| Cost | Varies across suppliers; some suppliers charge transaction fees, replacement card fees, and sign-up fees, while others are free |
| Flexibility | Branded gas station cards (e.g. Shell, BP) offer discounts only at specific stations, while general-purpose cards offer rewards on gas purchases from any station |
| Interest | Some fuel cards offer interest-free credit on fuel purchases |
| Additional Benefits | Fuel cards may offer features such as custom alerts on spending and fuel amount management, as well as tools to help drivers find specific gas stations |
| Price Type | Fixed-price fuel cards guarantee a fixed rate for a week, while pump price cards offer other benefits |
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What You'll Learn
- Fuel card fees: transaction, replacement, account management, and risk-based fees
- No hidden fees: some providers charge for unused cards or transactions
- Free fuel cards: Fuelwise and DCI offer free cards with benefits
- Fixed-price fuel cards: guaranteed rate for the week, regardless of pump price changes
- General-purpose cards: bonus rewards on fuel and other categories
Fuel card fees: transaction, replacement, account management, and risk-based fees
Fuel cards are a popular choice for businesses as they save time and money by aggregating multiple fuel receipts into a single invoice. However, some fuel card providers levy hidden charges that can significantly increase the cost of using their services. These charges can be classified into several types, including transaction fees, replacement fees, account management fees, and risk-based fees.
Transaction fees are charged every time a driver uses the fuel card to pay for fuel. These fees can be as high as £3 per transaction, and they add up quickly, especially for businesses with multiple vehicles. For example, a company with 10 vans that fill up four times a week would pay £6,240 per year in transaction fees alone.
Replacement card fees are another common charge, with some providers charging around £6 for each replacement. These fees can add up, especially if cards are frequently lost or misplaced. Additionally, some providers charge extra for services such as having the company name printed on the card or requesting copy invoices.
Account management fees are levied by some fuel card providers for managing the customer's account and providing access to their online management system. These fees can vary depending on the provider and the level of service offered.
Risk-based fees are charges that are linked to the risk associated with fuel purchases. Some providers charge up to 24 pence per litre as a risk-based fee, which can significantly increase the overall fuel cost. Other fees that fall under this category include late payment fees, underused account fees, and exceeding credit fees.
To avoid being caught out by these hidden charges, it is important for businesses to carefully review the terms and conditions of their fuel card provider and compare different options. Some providers, such as Fuelwise and fuelGenie, offer fuel cards with no hidden fees, helping businesses save money on their fuel expenses. Additionally, mapping out the journeys and issuing relevant fuel cards that don't incur premium fees or hidden charges can help optimise costs.
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No hidden fees: some providers charge for unused cards or transactions
When it comes to fuel cards, it's important to be aware of potential hidden fees that can impact your overall costs. Some fuel card providers charge a variety of fees, such as transaction fees and replacement card fees, which can quickly add up and offset the savings you expect to make. In some cases, you may even be charged for not using your fuel card, which can be frustrating if you're trying to manage costs.
At Fuelwise, we understand that these hidden fees can be a burden, which is why we're committed to offering a fuel card with no hidden charges. With our Fuelwise Fuel Card, you won't be charged for the fuel you don't purchase, and we don't have any account management fees or risk-based fees that are common with other providers. Our priority is to help your business save time and money, so you can trust that you're only paying for the fuel you need.
Our customers have shared their positive experiences with us, highlighting the exceptional service and cost savings they've achieved with the Fuelwise Fuel Card. They appreciate the convenience of our Velocity platform for monitoring fuel spend and transactions, as well as the e-Route app, which helps their drivers easily locate any of the thousands of sites that accept our fuel card.
When choosing a fuel card provider, it's essential to consider the potential hidden fees that may be involved. By opting for a provider like Fuelwise that offers transparency and no hidden charges, you can be confident that you're making the most of your fuel budget and avoiding unnecessary expenses. With our fuel card, you can focus on efficiently managing your business without worrying about surprise charges.
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Free fuel cards: Fuelwise and DCI offer free cards with benefits
Fuel cards are free for customers to use, with no joining or application fees. Fuelwise, the leading supplier of fuel cards in Ireland and the UK, offers a five-star-rated service with benefits such as competitive pricing, weekly price updates, and dedicated account managers. Fuelwise also provides free and unlimited access to Velocity, an online account management system, as well as accurate reports on fuel usage and VAT-approved invoices.
On the other hand, DCI, the largest fuel card network in Ireland, offers discounted fuel pricing, secure payments, and fraud prevention. DCI provides full geographical coverage across Ireland, with over 1,900 sites, including 24-hour and HGV stations. Their e-route tool helps customers map their journeys and find stations, and they also offer paperless, HMRC-compliant invoices, automated payments, and straightforward admin.
Both Fuelwise and DCI cater to businesses of all sizes, with Fuelwise serving thousands of businesses in Northern Ireland and the Republic of Ireland, and DCI supporting over 50,000 businesses across Ireland. DCI also provides custom alerts and purchasing permissions for multiple cards, as well as the ability to link cards with telematics devices for optimal fleet efficiency.
Customers can expect to receive their fuel cards within 7 to 10 working days after their application has been approved. These cards offer benefits such as interest-free credit on fuel purchases and improved fuel cost management.
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Fixed-price fuel cards: guaranteed rate for the week, regardless of pump price changes
The cost of business fuel cards varies across different suppliers, with some suppliers charging different fees such as transaction fees and replacement card fees. Some providers even charge a transaction amount every time you fill up at the pump, which can be costly for a fleet with multiple vehicles.
However, some companies, such as Fuelwise, offer fuel cards with no hidden fees and no transaction fees, so you only pay for the fuel you need. Fuelwise also does not charge any account management fuel card fees, which many other providers do.
If you're looking for a fixed-price fuel card, this is what you need to know. With a fixed-price card, your fuel rate for the chosen period, usually a week, is determined by the diesel wholesale price and is fixed in advance. This rate doesn't change even if retail prices shift during the period. For example, with a Texaco Fastfuel card, you can pay for petrol, diesel, or a mix of both at a fixed rate for the week.
Fixed-price fuel cards are particularly suited to HGVS, large fleets, and high-volume fuel users. They offer the benefit of greater control over your fuel spend, as you get the same fixed pricing no matter where you refuel. These cards have smaller networks than some pump price cards because they are more specialized, but they are often accepted at the best truck stops in the UK and are strategically located along major transport routes.
With a fixed-price card, you can set your fuel prices for seven days and get consistent fuel prices to plan out your spending. Your price will typically be sent to you via email or text message each week, so you know what you're paying. However, keep in mind that because the price changes each week, the fuel card supplier has the ability to add more margin in each week, which could result in a slight increase in price per litre by the end of the year.
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General-purpose cards: bonus rewards on fuel and other categories
When it comes to fuel cards, there are two main types: closed-loop cards and general-purpose cards. Closed-loop cards are issued by specific gas stations and only allow you to earn rewards at designated retailers. On the other hand, general-purpose cards offer bonus rewards for gas purchases alongside other categories, providing more flexibility. This means you can earn rewards not just on fuel but also on purchases you would typically make in other categories.
General-purpose cards with bonus rewards on fuel purchases often require good to excellent credit scores and may offer 2% to 3% cash back on fuel spending. Some cards even provide up to 5 points per dollar spent on gas. These cards can help you save money right at the pump, and you can redeem your rewards in various ways, such as statement credits, bank deposits, gift cards, hotel stays, or online shopping.
The Blue Cash Everyday® Card from American Express is an excellent option for families who spend a significant portion of their budget on fuel. It offers 3% cash back on up to $6,000 spent annually in three categories: U.S. gas stations, U.S. supermarkets, and U.S. online retail purchases. Additionally, you'll earn 1% back on other purchases outside of these categories. This card also comes with a welcome bonus: earn a $200 statement credit after spending $2,000 in the first 6 months.
Another card to consider is the Wells Fargo Autograph® Card, which offers three points for every $1 spent at gas stations and electric vehicle charging stations. This card also provides bonus points in other categories, including restaurants, travel, transit, popular streaming services, and phone plans. Wells Fargo allows you to redeem your points for travel, gift cards, and cash back in the form of a statement credit. Plus, there's no annual fee, maximizing your rewards value.
The Bank of America® Customized Cash Rewards credit card is also worth mentioning. While it doesn't specify a percentage-based reward system, it includes a wide variety of merchant categories, such as automated fuel dispensers, fuel dealers, marinas, and service stations. This card also has no annual fee, allowing you to keep more of your rewards.
When choosing a general-purpose card with bonus rewards on fuel, it's essential to consider your spending habits and preferences. These cards are ideal if you drive a lot or prefer buying gas from the same brand. Additionally, pay attention to the fine print, as each card issuer has its own rules for gas rewards, and be mindful of potential caps on earnings and high APRs associated with some cards.
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Frequently asked questions
The cost of fuel cards varies across suppliers. Some suppliers charge transaction fees, replacement card fees, and account management fees. Fuelwise, for example, does not charge any fees for its fuel cards.
Fuel cards can offer a fixed weekly rate, ensuring a consistent price for fuel even if pump prices rise. Some fuel cards offer interest-free credit on fuel purchases.
Some fuel cards are free, such as the one offered by Fuelwise, which has no hidden fees. Other providers may charge various fees, so it is important to understand the pricing structure before signing up.
The usage of fuel cards depends on the provider. Some fuel cards, like Shell or BP cards, are limited to specific fuel stations. Other general-purpose cards may offer bonus rewards on fuel purchases at a variety of locations.
When choosing a fuel card, consider factors such as flexibility, rewards, and the locations where the card is accepted. Compare different cards based on fees, promotional and ongoing APRs, and sign-up bonuses. Additionally, review the earning and redemption rates, options, and difficulty for rewards cards.
