Fuel cards can come with numerous different benefits to them, from improving security and control of business expenses to making savings on fuel costs. They have become a useful tool for both businesses and employees, and have helped to simplify the process of fuel purchases for business expenses. This may in-turn promote the use of company cars altogether and thereby increase the demand for fleet vehicles. Fuel cards could therefore have a positive impact on the automotive industry altogether, as well as helping to streamline the use of company cars throughout a business.
What is a Fuel Card?
When considering a fuel card, it’s important to know exactly what this is, and how to use it (find out more information in the iCompario Glossary). Essentially, a fuel card is a type of payment product that is used to purchase fuel. This product is for businesses, and can only be used to purchase fuel for vehicles employees use for business purposes.
Businesses can customise the areas the card will be effective in, in addition to what types of stations (e.g. supermarkets and oil brands). Once an employee fills up the selected vehicle, they will use their fuel card to purchase the fuel. The providers for the fuel card will then send through an invoice of the purchases made on this card, helping to keep purchases contained to just fuel for the business, and organising these transactions all in one easy-to-read document.
What Are The Benefits of a Fuel Card?
There are many benefits that can come with using fuel cards. Fuel cards can be particularly useful for businesses who use vehicles on a regular basis. They can help to organise management of these vehicles in a clear and simple way; ensuring all purchases have been made on fuel for the business, whilst keeping all of these purchases in one place.
Some of the key benefits that come with a fuel card include the following:
- Makes purchasing fuel convenient for both employees and businesses.
- Improves security of purchases.
- Simplifies the admin process.
- Is safer than having employees carry cash with them.
- Provides more control over business expenses.
Businesses can also make savings on fuel by using a fuel card. Some fuel cards can offer a fixed price on fuel that can often be cheaper than the varying rates across different stations. Fuel cards can also help a business to make savings on fuel by sourcing from suppliers who have competitively low rates.
Fuel Cards and the Automotive Industry
Fuel cards may also have an impact upon the automotive industry, by helping to simplify a business’s management of using vehicles. By making this process more streamline, this may encourage more businesses to use vehicles, which could lead to increases in usage, and thereby money, put into the automotive industry. Whether fuel cards will have an impact upon the usage of vehicles in businesses is unclear. However, they have helped to make the process of using vehicles much easier, streamlining fuel purchases and improving the security of these purchases.