How Fuel Cards Work for Both Drivers and Businesses

A fuel card serves as a specialized payment method primarily designed for vehicle-related expenses, particularly fuel. Businesses often utilize these cards to manage and track the fuel consumption of their fleets. Fuel cards simplify the process of purchasing gasoline or diesel, similar to a credit card but with controls tailored for fleet management. They streamline administrative tasks by monitoring vehicle expenses. This solution offers a structured approach to overseeing a primary operating cost for businesses relying on vehicles.

Using a Fuel Card at the Pump

When a driver uses a fuel card at a gas station, the driver inserts or swipes the card at the pump. The system prompts for a Personal Identification Number (PIN) or a driver identification number for security purposes. Drivers may also input the vehicle’s odometer reading, which helps track mileage and fuel efficiency. This data simplifies record-keeping and provides valuable insights for fleet managers.

After these details are entered, the driver selects the fuel type, such as gasoline or diesel. Fueling then proceeds, with the driver dispensing fuel into the vehicle’s tank. Once fueling is complete, the driver returns the nozzle and can print a receipt directly from the pump. This receipt, along with the electronically captured data, provides a clear record of the transaction.

Company Management and Controls

Fuel card management systems provide businesses significant oversight. Fleet managers implement various controls over how and when cards are used. Spending limits can be set daily, weekly, monthly, or per transaction to prevent overspending and ensure fuel expenses remain within allocated budgets.

Controls also restrict purchase types, allowing cards to be used solely for fuel, specific fuel types, or sometimes for maintenance services. Managers can also specify usage days or times, adding another layer of security and misuse prevention. Real-time transaction monitoring and detailed reports are accessible online, providing immediate visibility into all fuel purchases. This data helps reconcile expenses, identify potential misuse, and prepare financial records for tax purposes.

Different Types of Fuel Cards

Fuel cards include several categories, each with distinct acceptance networks and features. Universal fuel cards are widely accepted at most gas stations and truck stops, often leveraging major payment networks. This broad acceptance provides drivers with flexibility, reducing the need to search for specific brand locations. Examples include cards on the WEX or Voyager networks, which are accepted at over 95% of retail fuel locations.

Proprietary or brand-specific cards are accepted only at a particular fuel brand’s stations, such as Shell or Mobil. While these may offer discounts or loyalty benefits, their limited acceptance can be a constraint for diverse routes. Fleet cards are designed for businesses with multiple vehicles, offering management features like detailed reporting, spending controls, and sometimes discounts on fuel purchases. Some fleet cards also allow purchasing maintenance services, further consolidating vehicle expenses.

Setting Up a Fuel Card Program

Establishing a fuel card program involves identifying specific operational needs. Businesses gather necessary information, including their Employer Identification Number (EIN), business registration documents, and bank details. Some providers may request financial statements or conduct a credit check to assess financial stability and determine credit limits.

The application is usually completed online through the provider’s portal, though paper forms may be available. After submitting the application, a review takes place, ranging from a few days to a few weeks for approval. Upon approval, fuel cards are issued and mailed to the business. Businesses then activate their account and cards, gaining access to the online management platform to set up controls and monitor usage.