How fuel cards are helping trucking companies to increase profitability?
Fuel cards have been playing an important role in the transportation industry for a long time. These cards are provided to fleet management companies. The company would then give it to their drivers so that they can use it to fuel their vehicles at the prescribed places.
These cards can also act as security measures to monitor the drivers’ expenses throughout their delivery journey. Today, a company can get fleet cards not only from individual gas stations or chains but also from various national brands. Most of these companies offer discount options across a large section of retail partners.
Let’s learn more about fuel cards and how they help trucking companies to increase profitability.
What exactly are Fuel Cards?
Fuel cards also known as fleet cards are payment cards that work like credit cards and are used by drivers of commercial vehicles to pay for fuel in gas stations. They can get up to 90 extra days to come up with the cash to repay the bill.
Fuel cards can be classified into two groups based on price point:
- Pump price fuel cards
- Fixed-price fuel cards
These cards can also help to pay for any type of maintenance a commercial vehicle requires depending on the brand.
How Trucking Companies Can Increase Profitability With Fuel Cards
From getting various discounts at a gas station to a detailed report on expenses, there are several ways in which a trucking company will profit with the help of fuel cards.
Listed below are some of the ways:
Fuel Cards are Convenient for the Driver of the Commerical vehicle
Almost all fuel stations across the country accept fuel cards. Truck drivers can use this card to get fuel from nearly anywhere needed, and when they need it. In a situation when they are in some part of the city for delivery, they don’t need to worry about payment for fuel. The drivers can get gas whenever it’s most convenient for them when they have this card in hand.
Fuel Cards Play an Important Role to Reduce Fuel Expenses
Fuel purchase is a significant expense for a trucking company besides vehicle maintenance. With the help of fleet cards, companies can reduce their fuel expenses significantly. Various fleet cards allow drivers to get various discounts at gas stations which helps to decrease fuel costs and save on overall expenses.
Prevent Fraudulent Gas Charges with the Help of Fuel Cards
Disputing fraudulent fuel charges can be quite the worst scenario for a fleet company. With the fuel card in hand, it becomes possible for drivers to prevent wrong charges from creditors as most of the transaction is done online. The organization will also know all the information regarding the fuel transaction in real time. This will prevent any type of fraudulent charges from the drivers too.
Get Accurate Data and Analytical Reports with Fuel Cards
Fleet managers might find it quite difficult to gather up all the recipes and figure out how much was spent by the drivers for purchasing fuel every month. Having a fleet card makes it easier for them to have an organized record and data-keeping system.
The fleet managers only need to log into their online accounts and see all the transactions, which will include the cost of fuel and information on maintenance costs, etc. This type of reporting can save their time, money, and frustration while making eat efficient to monitor the business.
Paperless Operation with Fuel Cards
Paperless operation isn’t always easy for the trucking industry. It takes a lot of time and resources to properly document every piece of information which can make the fleet managers drown in paperwork.
With fuel cards, trucking companies can reduce their paper consumption, printing needs, or even postage charges. The drivers can connect their fleet card to their accounting software to directly create and send bills to the manager via mobile app.
Have Control Over Spending Habits with Fuel Cards
With a fuel card, a fleet manager will know how much a driver spends at the gas station. They can place various limitations on the amount of fuel, the drivers can purchase while they are on the road and other parameters. These types of purchase control will help a trucking company to manage its fleet’s fuel consumption and expenses.
Have Proper Transparency with Fuel Cards
Most of the time drivers have to go to various parts of the country for delivery which makes it difficult to maintain transparency on the road. But with fleet cards maintaining transparency is possible. These cards will allow fleet managers to access the information related to the post-purchase of fuel by drivers, they can put controls in place even before the purchase.
The driver has to use an authorized PIN to make any transaction which will be directly checked by the manager. The drivers won’t try to spend on unnecessary things as all their transactions will be monitored by the accounting team in real time.
Save Time with Fuel Cards
Fuel cards are easy to use and help save the time of drivers at various gas stations. They don’t need to send the list of transactions or reports to the fleet manager as it is done automatically. They will not need to go to different gas stations to get the fuel at the best price, thus saving a lot of fuel.
All of the above-mentioned points will help the trucking companies get significant profit by reducing the cost of fueling. So getting fuel cards for any fleet company is beneficial. The correct fuel card depends on your goal, and there is no shortage of options in the market.
Which institutions issue fuel cards?
Most fuel cards are issued by banks, financial institutions, and merchant institutions tied up with fleet management services providers issue fleet cards with various benefits.
How to use a fuel card?
When fueling at a pump station, the driver needs to swipe the fuel card, enter their PIN, and other important details like unit number, mileage, etc., to get the receipt.
What to consider before choosing a fuel card?
Here is a list of things a company needs to consider before choosing a fuel card:
- The location of the business
- Any discounts provided by the fuel card company
- The overall control of the fleet card
- Good connectivity