We have all seen a commercial for a new groundbreaking medicine that promises to help alleviate a health condition. These commercials are always bright and happy and show a future where you no longer have to deal with this health issue. It’s the dream right?
Then you hear a voice in the background that speedily list what seems like a billion side effects that are far worse than the initial health condition the medicine aims to solve in the first place.
This is unfortunately how alot of fuel cards are marketed. You see the huge 10¢ per gallon discount and think wow I need to get this card quickly to start saving hundreds if not thousands of dollars each month.
You sign up and everything seems to be working well until you start evaluating your new fuel card program and realize it’s not saving you money at all. Why?
Just like the long list of side effects on the medicine commercial, there’s a list of side effects (fees) that were likely hidden in the small print of the fuel card credit application that you filled out.
In order to prevent these surprises, let’s look at some the most common fees card providers will hide in your company billing and what they add to your cost.
Common Types of Fuel Card Fees
| Fee | Cost |
|---|---|
| Set-Up Fee | Up to $40 |
| Monthly Fee | $2-$10 per card per month |
| Transaction Fee | 10¢-$3 per transaction |
| Replacement Card Fee | Up to $2 per card |
| Custom Report Fee | Up to $25 per report |
| Late Fees | 2-10% of invoice total |
How Fuel Card Fees Can Add Up
Now, let’s add up what all of these fees would cost a hypothetical company that purchases 4,000 gallons of diesel fuel for $16,000 per month for their 10 trucks with a 5¢ rebate added to every gallon.
-Set-Up Fee: $40 = $3.33 per month
-Monthly Fees: $2 per card= $20 per month
-Transaction Fees: $3 per transaction (80x)= $240 per month
-Invoice Fees: $10 per invoice (2 per month)= $20 per month
-Late Fees: Up to 10% per invoice (.10 x 16,000) = $1,600 per month
-Special Reporting Fee: $25 (4 per year, quarterly) = $100 per year
5¢ per gallon rebate saves $2,400 per year
Fees Add to $3,499.96 per year with no late payments
You are now paying $1,099.96 per year or 2.29¢ per gallon above pump price
How To Check If You Are Being Charged Fuel Card Fees
First things first check your invoice. Any fee fee besides a transaction fee would likely be a line item at the very bottom of your invoice.
Transaction fees are little harder to find because they are usually hidden in the price per gallon. Request that your drivers get a receipt at the pump and match the receipts with your invoice. This will show how much you are paying compared to the pump price.
You can also contact our sales department to compare fuel pricing in your area and evaluate your invoice.