Fuel Cards vs Credit Cards
Managing a fleet comes with its own set of challenges, especially when it comes to controlling costs and staying on top of expenses. One decision fleet managers often face is whether to use a fuel card or a credit card for vehicle-related expenses. While credit cards are widely recognised, they may not offer the tailored […]
Managing a fleet comes with its own set of challenges, especially when it comes to controlling costs and staying on top of expenses. One decision fleet managers often face is whether to use a fuel card or a credit card for vehicle-related expenses. While credit cards are widely recognised, they may not offer the tailored features required for effective fleet management. Fuel cards provide an alternative that streamlines processes, improves cost-efficiency, and enhances control.
Here’s a closer look at the differences to help you decide what’s right for your fleet.
Streamlined expense management
Using credit cards for fuel purchases can make managing expenses more complicated than it needs to be. Employees might need to save receipts and submit expense claims, which adds an extra layer of admin. If business credit cards are an option, the monthly statements they generate often include a mix of different purchases, requiring fleet managers to take the time to manually separate fuel costs from other expenses.
Fuel cards simplify this process by offering itemised invoices for each fuel transaction. These invoices are often linked to specific vehicles or drivers, providing greater transparency. Many fuel card providers also include online tools that allow you to track spending in real-time, making it easier to manage costs and budgets.
Cost savings
Fuel prices in Australia can be unpredictable, and finding ways to reduce the cost of running a fleet is crucial. Fuel cards may stand out by offering access to exclusive fuel discounts at a broad range of service stations, including major brands. Over time, these savings can have a significant positive impact on your bottom line.
Unlike credit cards, which may incur interest charges if balances aren’t cleared in time, some fuel cards may come with interest-free payment terms for fuel-related purchases. This can make budgeting for fleet expenses more straightforward while avoiding any surprise fees.
Better spending control
Credit cards have the flexibility to cover a wide range of expenses, but this flexibility can sometimes pose a problem. Unauthorised or non-business-related purchases could crop up, requiring managers to spend time reviewing and querying statements.
Fuel cards help prevent these issues by offering spend controls on only fuel and specific vehicle-related services, such as toll payments or tyre replacements. Some also incorporate security measures, like limiting card use to specific vehicles or drivers. Having this increased level of control minimises the risk of overspending or misuse.
Monitoring and optimising fleet efficiency
One standout feature of fuel cards is the data they provide. Each transaction is recorded and linked to details such as litres purchased, kilometres driven, and fuel types used. These insights enable managers to calculate fuel efficiency, thereby identifying areas that might need improvement, such as excessive idling or frequent fill-ups.
Credit cards, by contrast, generally don’t offer this level of reporting. For businesses managing multiple vehicles, these insights can be pivotal in cutting waste, improving driver efficiency, and lowering overall fuel costs.
Side-by-side comparison
Here’s how fuel cards and credit cards compare when it comes to managing fleet expenses effectively:
| Feature | Fuel Cards | Credit Cards |
| Discounted Prices | Access to exclusive fuel discounts | Typically, no discounts for fuel |
| Usage Restrictions | Limited to fuel and vehicle-related expenses | Can be used for all types of purchases |
| Interest Charges | Some cards are interest-free for fuel-related expenses | Interest may apply on unpaid balances |
| Spending Control | Restricted use, reducing risk of misuse | Open-ended, risk of unauthorised purchases |
| Reporting Tools | Advanced tools for tracking and analysing fuel usage | Minimal or no reporting capabilities |
| Administrative Efficiency | Itemised invoices simplify expense tracking | Manual reconciliation of purchases required |
Why Australian fleets should choose FleetCard
For Australian businesses, FleetCard offers a tailored solution to better streamline fuel management and can help towards reducing costs. By removing unnecessary admin, providing access to fuel discounts, and enhancing control over spending, FleetCard works towards empowering businesses to run their fleets more effectively.
Fleet managers can monitor usage, improve driver efficiency, and ultimately save time and money. Whether your fleet consists of a few vehicles or a large-scale operation, FleetCard makes it easier to manage fuel expenses while staying focused on growing your business.
Thinking about switching? Discover how FleetCard can help transform the way you manage your fleet today. Apply here now.
