Finance
How Can Fuel Cards Help Save Money On Fleet Operations?
Global Banking & Finance Review®
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Fuel expenditure covers a significant part of the fleet’s budget. Regardless of the size of your fleet, or the niche you serve, everyone wants a solution to lower the fuel cost to increase their profit margin. But is it possible?
Fuel expenditure covers a significant part of the fleet’s budget. Regardless of the size of your fleet, or the niche you serve, everyone wants a solution to lower the fuel cost to increase their profit margin. But is it possible?
Yes, it is, but how? Fuel cards are a comprehensive solution that can help to monitor and control your fuel expenses and decrease your operation cost by 30%.
Fuel cards allow you to monitor and control how much your drivers can spend on gas purchases. In this way, you can limit overspending and fraud. Do you know what is the best part of the fuel card? It helps you to get fuel rebates and additional rewards on your fuel purchases.
Do you want to know more? Read out this article till the end. Here we will discuss how much you can save by switching to fuel cards.
Fuel Cards
A fuel card is similar to a credit card, but it is used to purchase gas. It is simple to use. Your driver has to insert the card, fill the tank and provide the additional information at last. It is the best way to streamline fuel management, reporting, and billing. You can find few of the best fuel cards here.
Benefits Of The Fuel Cards
Now you know that fuel cards can help you save money, improve management controls and streamline the administrative process. Let us discuss them in detail below:
Discounts
The fuel cards offer special deals at the networking fueling stations. It provides you with discounts on your purchases. Some vendors even provide volume-based rebates so you can save more.
Additionally, the fuel cards also offer special deals and discounts on other services, such as tires, retreads, vehicle wash, or food. Some cards even offer loyalty rewards. So there are plenty of ways for you to save money.
Fraud Protection
Another benefit of the fuel card is monitoring spending. Do you know there can be times when the drivers are overspending? It can happen in four ways:
These are some prominent problems fleet industries are facing right now. You can address these by switching to fuel cards.
Fuel cards provide you with better control over spending. It allows you to set purchase limits, control individual employee limits, control access spending, etc. For additional security, it also provides a unique driver ID number to your driver, so that they cannot use the card for unauthorized purposes. Every time your driver makes a purchase, you will get a notification about the details.
Detailed Reports
A fuel card also provides detailed information about fuel purchases so that you can compare the spending to identify any misuse or set customized limits.
The fleet managers can generate daily, weekly, and monthly reports to monitor their speeding. It saves time from generating expense reports manually. You can use them to get complete information about the fuel and maintenance purchases for different vehicles in your fleet.
It also allows you to view the summary of your fleet’s spending. You can use this to manage fleet-related expenses and plan your budget.
Generally, a fuel card provides you with four types of reports:
Monitor Fuel Purchases
Every time your driver makes a purchase, you will receive a real-time update with the location information. You can also check out the truck details to ensure that they are not using the card for their vehicle.
A fuel card with an odometer records the kilometer with every fuel purchase. So you can also ensure that the driver is following the set route and is not engaging in rash driving activities that contribute to high fuel expenses.
It also provides better information on the average mileage and if it needs servicing. So you can also use the information to choose the optimal route for delivery next time.
Streamline Administrative Operation
A fuel card can also help you to optimize your administrative work. You will not have to make efforts to collect the fee receipts from the drivers, make reports and analyze them. You can directly jump to the third step.
It will allow you to save your time & effort, and you will be able to invest your resources in revenue-generating activities.
Find the Best Deals For Fuels
The drivers can use the mobile application that comes with the fuel card to check out the price of fuel at different fueling stations. They can choose the one that offers the best deal.
They can also locate fueling stations if urgency in an unknown route. This saves their time and prevents downtime.
Fuel Price
The fuel cards offer two different pricing systems: Fixed price and pump price.
In a fixed price mechanism, the fuel cost is fixed and remains unaffected by fluctuations. It is ideal for big businesses as they have to buy a significant amount of fuel to run their business.
On the other hand, the pump price fuel cards offer you discounts, loyalty rewards, etc. It is best for small and mid-size fleets.
Bottom line
The fuel card market is rising with the increase in price of fuel & threatening every industry that runs on fuel. Fuel cards are some best possible solutions to cope with this. It provides you with gas at a discounted rate. It also allows you to monitor the fuel purchases in your fleet and avoid fraud & overspending.
And the best part is that the benefits are not just these. You will also get discounts and rewards on every fuel purchase.
Therefore, you should consider getting a fleet fuel card for your business. You can start by researching different fuel card vendors and know their plus and minus points. And then, tally it with your company’s demands. If they can provide what you are looking for, you should not waste time and talk to the agent for a better deal.
A fuel card is a payment card used to purchase fuel for vehicles. It helps businesses manage fuel expenses, monitor spending, and often provides discounts and rebates.
Fraud protection in fuel cards includes features that monitor spending, set purchase limits, and provide unique driver IDs to prevent unauthorized use.
Fuel rebates are discounts or cash back offered to businesses for purchasing fuel using specific cards or programs, helping reduce overall fuel costs.
A purchase activity report is a detailed document generated by fuel cards that tracks fuel purchases, helping fleet managers monitor spending and identify misuse.
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