Best Fuel Credit Cards

The high gas prices are really affecting the lifestyles of many people and paying for gas is become a major expenditure. If you are looking for how to get cheaper gas prices or save money on gas, one of the simplest and most effective way is to use a fuel credit card. This is a payment card you use at the gas stations instead of cash. It is like the real thing, since you only pay the account balances when its due but the payments terms can vary from weekly payments or monthly payments, depending on the fuel credit card issuer.

Many small businesses especially those in transport are using fuel credit cards to save on petrol, diesel, and other fuels at filling stations. These are also more secure and convenient since there is no need to carry cash.

Advantages Of Fuel Cards

  • You get discount fuel prices at certain gas stations when you use their fuel credit card.
  • It is easier to manage a fleet of drivers when issuing your employees fuel credit cards. There is no need for cash payments and claims.
  • You can have detailed fuel efficiency and miles per gallon reporting to track your fuel expenses.
  • You can recover VAT (tax) since the invoicing is shown with separate VAT.
  • There are rewards and rebates for accumulating points from frequent usage.

Disadvantages of Fuel Credit Cards

However, there are some cons instead of your regular credit cards:

  • It takes a longer time for card stopping or card cancellation.
  • You have to take on more liability for fraudulent transactions.
  • Interest free and credit periods are shorter.
  • They cannot be used on wholesale fuel.

Do not that not all fuel cards free with zero annual fees. Although fuel credit cards look similar to normal cash rebates credit cards, you should not mix them up and try to use your fuel card as a regular credit card for all your other purchases. Doing so will lose out on opportunities to collect more reward points on other store credit cards.

Fuel Credit Cards Compared to Normal Credit Cards

  • The payment terms of fuel credit cards are shorter.
  • No rolling balance allowed at the end of the month and you need to pay in full any amount due on your account.
  • You can customize fuel transactions such as restricting to certain types or grades of fuel – this is useful for business owners with fleets of vehicles.
  • You can set fuel transaction limits with its Smartchip system.

Probably the main restriction on fuel credit cards is that you cannot use them abroad in another country! Some fuel cards can still be used overseas but you are not likely to earn extra rebates or points on these charges. If you do travel and drive abroad frequently, consider getting international fuel credit cards to suit your requirements.

Now, lets compare the two main different types of fuel cards available now.

What are Commercial Rate Fuel Cards

Commercial rate fuel cards are designed for drivers or fleet owners because of the cheaper prices on gas. Usually, transactions on commercial fuel cards are restricted to fuel only in order to avoid disputes and misuse by drivers for personal purchases. Commercial fuel cards also business owners to have easy tracking and book keeping with consolidated gas purchase transactions on a single statement.

What are Retail Fuel Credit Cards

Nearly every gas station in United States have their own fuel credit card designed to increase brand loyalty by giving you the opportunity to save money while using their pumps. Retail fuel cards can offer the most rebates and reward points while filling up gas for your vehicle or shopping at the station. You can think of it as a way of offsetting high cost of your bad credit car loans. the These fuel credit cards can be used nationwide at any gas stations belong to the same company – BP, Texaco, Chevron, etc.

Most consumers are using their retail fuel cards to earn cash back on gas purchases, which is equivalent to enjoying discount on gas and other purchases at the stations or supermarkets. Do note that some gas companies actually have dual pricing on fuel, which means charging gas purchases on a fuel credit card is based on a higher pump price. That means any benefits are being taken back in a very dishonest manner. So before you sign up for a new card, think if it can really benefit you financially.


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