Businesses of all sizes and types can benefit from using a fuel credit card as part of their daily activities. How so?
These credit cards can make it easier for employees to pay for fuel and other expenses while on the road. They can even help you get control of spending and make everything run as smoothly and efficiently as possible.
But not all business fuel credit cards are created equal. How can you be sure you’re getting the features you need to manage — and grow — your company?
In this article, we discuss business fuel credit cards (also called fuel cards, fleet cards, or gas cards) in detail to help you choose the one that’s right for your team.
How Your Fleet Can Benefit From A Fuel Credit Card
When they first came out, fuel credit cards were little more than a convenient way for fleet drivers to pay for gas or diesel without having to carry around a lot of cash or blank checks.
Now, fleet gas cards come with benefits that go above and beyond just the ability to pay for fuel. These benefits can play an important role in the success of your business and your fleet activities.
Security
Fuel theft is a major problem for fleet managers these days. But with a good fuel card on your side — one with the right set of features — you can reduce the impact that fuel theft has on your business down to almost zero.
Coast, for example, will:
- Block transactions that exceed the limits you’ve defined
- Alert you if suspicious activity should occur
- Warn you if a fuel purchase exceeds vehicle tank capacity
And the combination of telematics and an advanced fuel credit card will even allow you to automatically decline payment if the transaction and company vehicle location don’t match. That’s peace of mind that you can’t get with a regular fuel credit card.
For more information on fuel card security and how to control fuel theft, check out the Prioritize Security section below as well as this article from the Coast blog: How To Protect Your Fleet From Fuel Theft And Fraud.
Flexibility
One of the chief benefits of using a fuel credit card should be flexibility — to purchase fuel at the most convenient, lowest-priced locations without having to drive far off the optimized route.
We say should because not all cards are created equal in that regard. Some fuel credit cards restrict where drivers can purchase fuel and obtain repairs to a handful of locations or to specific brands of gas and diesel.
But with the right fuel credit card, your drivers will gain access to every station that accepts Visa or other card networks (which is pretty much everywhere).
For more information on how a universal fleet card can keep your business agile, check out this article from the Coast blog: What Is An Open Loop Fleet Card, And What Are The Benefits?
Digital Tracking And Reporting
Another benefit that comes with implementing a fuel credit card in your fleet’s workflow is access to digital tracking and reporting features.
Every fleet manager knows that keeping track of vehicle expenses is a complicated and stressful task…especially if it’s done with paper receipts.
The process only gets more complicated if drivers forget to turn in their receipts, lose them, or fail to get a record of the transaction in the first place.
But a fuel credit card with advanced tracking and reporting features gives you the ability to eliminate paper receipts altogether and to track everything online.
That means no more chasing down receipts or trying to piece together driver and vehicle activity from paper records. Everything you need is available digitally through Coast’s online dashboard.
Streamlined Administration
We’ve already touched on how the right fuel credit card can help you cut down on the difficult task of collecting receipts and hunting down drivers to verify expenses. But that same fuel card will often be able to streamline administration even further.
How? By giving you access to vehicle data and advanced features all in one place.
For example, linking your fuel credit card with your telematics or fleet management software can give you access to accurate vehicle odometer readings at every fuel stop your drivers make.
This is just a small example of how the right fuel card can provide complete visibility into fleet spending on a single platform — often in real time.
How Your Fleet Can Benefit From A Fuel Credit Card
1) Investigate The Customer Service
When deciding on which fuel card to choose, most managers will focus on the more obvious features, such as security, payment terms, and fees.
That’s OK because those are certainly important for running your business well (we’ll even discuss them later on in this article). But, as you investigate all the fuel card options out there, don’t overlook their customer service.
In many ways, the customer service department of the card company you choose will function like a partner you bring into your business — they can either make things easier or more difficult.
If, for example, the customer service doesn’t match with the way you do business, they’re likely going to make things more difficult for you (even if they don’t intend to).
That’s not good for your business and highlights the importance of investigating each customer service department before committing to a specific fuel card.
Look for a customer service team that:
- Provides easy ways to get in touch (e.g., text, email, and phone)
- Gives you answers when you need them
- Understands the fleet business and what it takes to succeed
- Allows you to connect on your terms, not the other way around
- Delivers personalized service any and every time
- Doesn’t transfer you through an endless phone tree to get to the right person
- Responds quickly when you ask a question or have a problem
- Does everything they can to reduce or remove issues that can hold your business back
When you put customer service at the top of the list as you research fleet cards, you set yourself up to partner with a company that can help you succeed.
2) Prioritize Security
When you incorporate a fuel card into your business’s workflow, that card brings with it an inherent risk that a bad actor could gain access to your funds.
But, if you prioritize security, you can find an option that gives your drivers the freedom they need to do their job, while also providing a list of features that prevent overspending and unauthorized transactions.
Two of the most important features to look for are the EMV chip and the secondary security verification.
EMV Chip
The EMV chip (which stands for Europay, MasterCard, and Visa) is a tiny microprocessor embedded in the plastic itself that generates a unique code every time someone uses the card to make a purchase.
The unique code is only valid for that particular transaction and cannot be used again for any future transaction.
How does that keep your funds secure? If a bad actor records a transaction and attempts to use the information to buy something else, the system will deny payment for that purchase
Secondary Security Verification
Chances are, you’ve been faced with a secondary security verification (SSV) when logging in to your email or some other online account (the system sends you a code you have to enter to prove that it is you).
Fuel credit cards with advanced security use a similar form of SSV, only it runs in the opposite direction.
For example, before making a purchase, the cardholder would have to send a text from a specific linked cell phone number (typically the cardholder’s) to activate the card.
A reverse SSV like this makes it nearly impossible for a bad actor to misuse a stolen card because they won’t have the means or the know-how to turn it on.
3) Choose A Widely Accepted Card
Another important feature to consider when choosing a fuel credit card is whether or not that card is part of an open loop network or a closed loop network.
A card that is part of a closed loop network can only be used at certain merchants (e.g., at gas stations associated with a particular oil company). Legacy fuel cards are typically closed loop and can only be used at locations that bear the name.
A card that is part of an open loop network, on the other hand, has no such restrictions and can be used pretty much anywhere that accepts Visa and Mastercard.
Not all cards offer this feature, so do your research before you sign up so that your drivers will be able to use the card wherever they need to while they’re on the road.
4) Consider The Payment Terms You Need
As you investigate gas cards, be sure to examine the payment terms they offer and make sure those terms fit with the way your business operates.
In particular, look for terms that optimize your company’s cash flow so that paying the statement doesn’t conflict with, or detract from, other essential company needs.
Similarly, find a card that doesn’t lock you into a less-than-ideal billing schedule.
For example, one card may require that you make payments every 14 days, while another card may require that you make payments every seven days.
Such terms can put a serious damper on the funds your business has available for other necessary expenses, puts your company in a difficult spot right from the get-go, and makes it harder for your business to succeed.
5) Choose A Card That Will Grow With Your Business
Consider advanced features like integrations. With increased activity, many fleet managers find that linking their fuel card to their telematics, fleet management, and accounting software can reap huge benefits over the long haul.
At this point in your business, you may only need to pay for fuel. But what about your future needs? As your fleet expands, will you need to use your business fuel credit card for non-fuel purchases?
If so, will the card you choose (or the one you’re currently using) grow with your business and allow you to pay for other goods and services like food, supplies, lodging, maintenance, and repairs?
Don’t limit the growth of your business by sticking with a legacy fuel card that can’t give you what you need. Choose a card that will grow with your business and make that growth as easy and painless as possible.
6) Consider Rebates And Rewards
Rebates and rewards can help reduce the total cost of keeping your fleet moving. To maximize the benefit, choose a card that gives you rebates and rewards on regular purchases.
When investigating the various fuel credit cards, be sure to look for rebates and rewards such as referral incentives, discounts with partner businesses, and sign-up bonuses.
For example, some top-tier fuel cards offer a per-gallon rebate wherever your drivers fill up. If you think about the number of gallons your fleet uses every day, it’s easy to see how the savings can really start to add up.
At the same time, look for and avoid limited-time rebates, rebates limited by gallons purchased, and rebates limited to a certain brand of fuel.
As you shop, be sure to read the fine print. Some cards set limits on the rebates they offer. For example, one card might offer a rebate on fuel for the first two months or 100 gallons, whichever comes first. Another card may only offer a rebate at certain gas brands.
It’s worth doing plenty of research so you get the rebates and rewards that work for you and aren’t limited by the fine print that sometimes goes with them.
7) Avoid Hidden Fees
Hidden fees can quickly add up to the point that they equal or exceed the rebates, rewards, and other benefits a fuel card provides. Avoid these fees as much as possible.
When researching fleet and fuel cards, be sure to:
- Ask directly about hidden fees before signing up
- Watch for out-of-network fees
- Investigate per-gallon fees
- Avoid transaction fees
It’s also extremely beneficial to keep an eye out for hidden administration fees. Some cards will include high-credit-risk fees; higher late fees when you carry a high balance; and even electronic, check processing, and phone-payment fees.
These hidden administration fees can really add up if they apply to your fleet and can put a large speed bump in the way of your ability to move business activities forward.
8) Choose A Card That Gives You Complete Control
Controlling spending is one of the greatest challenges that most fleet managers face — particularly when it comes to fuel. The right business fuel credit card can give you complete control of your spending.
The Coast smart fuel card, for example, gives you the ability to:
- Establish pre-set spending limits
- Limit purchases by time of day or day(s) of the week
- Approve or deny certain types of spending
In some cases, you can add even more controls based on the size of the fuel tank to give you even more control over fleet spending and activities.
We recommend choosing a fuel credit card provider that gives you access to an online portal with dashboard capabilities that makes it easy to view data and set control on all of your cards.
Find The Right Fuel Credit Card For Your Fleet
Finding the right fuel credit card for your fleet is worth the effort and time involved. Coast can help.
The Coast smart fuel card comes with a wide variety of features, including:
- Wide acceptance
- Discounts of up to 10¢ per gallon at 30,000+ stationsFuel-only control at gas stations
- Ability to turn other spending categories on and off
- Integration with telematics, fleet management, and accounting software
These features allow you to flex between a fuel card and a corporate card so you can enjoy the benefits of both. They also put you in the right position to take your fleet management activities to a new level of simplicity, organization, and control.
Ready to give Coast a try? Get started here.
And, to learn more about how Coast can have a positive impact on your bottom line and help your business run more smoothly and efficiently, visit CoastPay.com today.
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