Fuel cards and credit cards do share some similarities. They’re both physical cards that provide people with a way to pay, but that’s about where the similarities end. Fuel cards are simply not the same as credit cards. In fact, they work very differently and serve different functions for business owners who operate fleets. Let’s dive into the differences and learn why fuel cards are simply not credit cards.
1. Fuel Cards Are a Payment Tool
Let’s begin with the most obvious difference: fuel cards are not a money-lending tool. Unlike credit cards, when a fuel card is used, the amount gets charged to your business bank account. This does require business owners to be more aware of their business bank account balance or provide a business card as a backup payment method, but the fuel card itself operates very differently. Think of a fuel card more as a business payment tool instead of a money-lending tool.
2. Fuel Cards Offer Greater Control and Flexibility
Fuel cards are also assigned very differently. While credit cards are typically assigned to a person, a fuel card can be assigned to either a driver or a vehicle. Driver cards are assigned to a specific driver in your fleet, while vehicle cards are assigned to a specific vehicle in your fleet. If your drivers switch vehicles every shift, there’s an alternative system that assigns a unique PIN to each driver, which can work with any of the vehicle cards. Fuel cards provide more flexibility and much better fleet management tools for business owners and fleet managers.
Another big advantage of a fuel card is gaining greater control over your fleet’s spending while also gaining the ability to prevent card misuse. Fuel cards, such as the Energie Fuel Card, offer a variety of useful card controls, including fuel-type restrictions, daily transaction limits, and daily or monthly gallon limits. If your drivers work on a strict schedule, fleet managers can set time parameters and establish fueling times and days for each driver based on their working hours. Fuel cards also allow you to set authorized fueling locations by state and block specific ZIP codes if needed.
3. Fuel Cards Offer Fleet Management Tools
Speaking of management tools, fuel cards collect much more data to help fleet owners properly manage their fleets and the company’s fuel-related expenses. When a driver fuels, you can receive information including the merchant’s name, date of purchase, fueling time, gallons pumped, price paid, fuel type, driver name, vehicle number, and odometer reading. A credit card typically gives you the merchant’s name, date of purchase, and total amount of money spent.
Fuel card providers such as Energie Fuel also provide the ability to generate pre-IFTA (International Fuel Tax Agreement) reports and other reports needed for fuel and tax reporting.
4. Fuel Cards Are Designed to Save Money
Many business credit cards offer business owners cash back, reward points, rebates, and other ways to save money. Fuel cards do not offer points or flashy rewards. Instead, they offer per-gallon fuel discounts and access to CFN stations, which offer wholesale fuel pricing. There are over 2,000 CFN stations nationwide and up to 57,000 retail locations across the country that accept fuel cards such as the Energie Fuel Card.
5. Fuel Cards May Offer Easier Approval
New businesses might find it easier to apply for a fuel card than a standard business credit card. Energie Fuel understands that even if a business owner has excellent personal credit, it can often be challenging to convince credit card companies to take a risk when the business is new. Many new business owners might think they will get turned away if they operate a small fleet, but that may not be the case. Fuel card companies such as Energie Fuel will review the application and work directly with business owners to understand their business and their needs.
Fuel card providers can also help guide business owners toward the type of account parameters that will work best for the needs of their fleets and offer continued support as the company and fleet grow.
To reiterate, fuel cards are not credit cards. Yes, they’re both plastic cards that live in your wallet, but they function very differently. If you are interested in learning more about fuel cards or are unsure whether a fuel card is right for your business, you can contact Energie Fuel, and one of our specialists will help point you in the right direction.
Energie Fuel aims to support fleets and businesses of all sizes. When you choose Energie Fuel, you gain a partner that is committed to helping your business succeed, better manage fuel expenses, and save money on fuel.