Fuel cards are used in business to allow drivers to pay for fuel on the go without using their own cash. It is a popular method of electronic payment and one which is used all over the world to streamline the way a business manages its finances.
If you are looking into fuel cards and deciding whether or not to invest your time in them this year, we have some solid reasons why you should absolutely invest in fuel cards and other electronic payments such as Total Merchant Services for your company.
The first main benefit of choosing to hand out fuel cards to drivers instead of rebating a debit card payment is that it is cheaper. With the sharp rise in payment technology over the last 5 years, many fuel providers work with fuel card providers to offer users discount. So not only is it less paperwork, but it works out cheaper for you too!
One of the best reasons to choose a fuel card instead of paying by credit or debit card is protection against theft. Paying with a fuel card is the safest method, and it will save drivers from being robbed if they carry cash or a debit card with them. To a robber a fuel card is useless so this acts as a great deterrent and will keep your team members safe.
When working as a business owner and offering to pay travel expenses, the important thing to remember is that you should control fuel usage to ensure that people don’t overspend. With a fuel card, you can set a limit for each month that ensures your workers cannot take advantage and overspend on their fuel.
When paying for fuel with cash, a credit card, or a debit card, you will lose important reporting features for your company. A fuel card allows you to report on a truck’s efficiency and can even use a form of predictive maintenance to tell you if the truck or car is in need of repair. Using a fuel card for all vehicles will ensure that you stay in the loop with the performance of the vehicle and you will therefore have a better understanding of your assets.
One of the things you certainly can’t do if people pay by cash or card is track their usage in real-time. Using a fuel card gives you access to live reporting and this allows you to see when a vehicle was last filled up and how much has been spent. Having a real view like this can be a huge help for you as a business because you can control car5d limits, issue statements, and optimise permissions live.
The International Fuel Tax Agreement (IFTA) is something you have to fill in every quarter when you use vehicles for your business. We all know that tax can be a pain, and the good news is that the information you gain from your fuel card reporting will make this process much easier.