Difference Between Fuel Cards and Credit Cards

Fuel cards also known as fleet cards are a method of payment used for payments of fuel. It operates much like a credit card to be presented at the point of payment at fueling stations to resolve the fuel charges. Filling cards eliminate the need for money when paying for fuel and thus increase security.

Although the fuel card is very similar to a credit card, there are many differences in their management and use.

No Rolling Stocks

Unlike credit cards, have no minimum balance and a rollover. Is expected to resolve the outstanding credit at the end of each period. This allows the management of credit as they are only able to consume the fuel for an agreed period before payment. Therefore, they are not associated with the credit crisis. If a client is unable to meet its monthly obligation, the service is terminated immediately.

No interest

Unlike credit cards that bear the burden of interest, fleet cards are without interest. You only pay for what you have consumed at the end of the period agreed. However, some companies charge a nominal fee each month. Being free of interest protects customers of high interest rates associated.

Limited to the purchase of fuel and other fuel related products

The card limits you to purchase fuel only. Some you can afford to buy automotive products, such as lubrication and car service. This restriction allows easier administration and better management of fuel costs.

Payment period is shorter

In many cases, the payment period is weekly. Some ask for a fortnight or monthly payment of fuel.

You can customize to the limits of daily fuel filling station Restrictions

Their fuel systems allowing enterprise administrators to implement various custom fuel restrictions. The administrator can apply a maximum daily fuel per vehicle depending on need. You can also restrict fueling stations that can fuel a car or even the region where services can be used.

Fraud is general liability to the Client

In most cases, the liability associated with fuel cards given by the customer. This is different from credit cards to default responsibility of a fraud is the issuing company. However, as they are limited only to feed, and you can determine the maximum use per day or per week, the risks associated with fraud is much lower.

Cancellation and activation is not instantaneous

One of the major constraints currently affecting the fuel card business, especially in the United Kingdom is that the activation and termination of service takes some time. Unlike credit cards that the activation is immediate, time takes a few days before being accepted at all gas stations linked. This also applies to cancellation. However, some companies are starting online activation and cancellation to accelerate the process.

Price and profit management

A major advantage of fleet cards to buy fuel is usually a discount in the price of wholesale. The fuel cards also has a royalty scheme to reward points for customer loyalty. In addition to cost savings, the fleet card company and provide data systems that allow the management of fuel costs to run better. They also provide statistics that are important for decision making, especially for fleet related companies. Another advantage for companies is that the invoice clearly states the company to pay VAT and thus facilitate the recovery of taxes.