There are several ways to purchase commercial fuel, first among them being credit cards and fuel cards, and each has their own set of pros and cons. Which when carefully considered, can lead to making a decision that either benefits the company going forward or doesn’t. But in a really big way. So today, we’ll be looking at the two most prevalent ways commercial fuel is purchased and analyze their individual sets of pros and cons so that you can better make an informed decision on what’s best for you and your company.
Credit Cards
Cash Back
With a credit card you can earn cash back on every single one of your purchases, including fuel. Sometimes up to 2-5%. However, with most cards this offer is only available up to a certain point i.e. $2,000.
Locations
Because of the universality of most credit cards, there really isn’t a place that you couldn’t fuel up with one. So with a credit card, the number of available stations is unlimited.
Fees
As you’re probably already aware as a result of using your own personal credit cards, credit cards sometimes come with fees that are charged to you annually. Sometimes, cards with fees have better offers when it comes to the amount of cash back that can be earned on purchases but this is not always the case. Meaning that it is possible to find a great card, without the fees.
Fuel Cards
Rebates
With a fuel card, just like you would with a credit card, you can also get a return on the fuel purchases you make.But with a fuel card, you can earn upwards of 6-7%. However, these offers are often only available for a few months time after the card is purchased.
With a fuel card, you can control exactly how your card is used. This way you can assure that your card is being used exactly what it’s for, which is to buy fuel. Something that you can’t guarantee with a credit card.
Depending on the card, fuel cards can also come with fees. However, sometimes these fees that are charged monthly and annually can total to such an amount that would serve to cancel out any rebate you may have been offered.
Conclusions
Ultimately, the decision as to whether you use a credit card or a fuel card is entirely dependent on your fuel related circumstances. If you and your company have a small fleet, with somewhere between 1-4 trucks then a credit card is probably the way to go. With unlimited location access, and no real need for controls given how few drivers your company has a credit card will be able to meet each and every one of your needs.
However, if you and your company have a larger fleet, with 5 or more trucks, I suggest you look into starting a fuel card program. Reason being that the more trucks you have, the harder it is to keep track of how they’re being fueled and the less control you have the more room drivers have to make purchases that aren’t fuel related. So don’t lose money, or trust in your employees when you don’t have to and look into getting your large fleet started on a fuel card program.