Fuel cards, sometimes referred to as fleet cards, are a method of payment used primarily by businesses in order to simplify the payment and record keeping process involved with the purchase of fuel. Often the process of keeping track of expenses is time consuming for a company’s administrative staff, so these cards are designed in a way to streamline this aspect of a business operations. These are not credit or debit cards per se. Fuel cards are exclusively designed for transactions with fuel suppliers. Fuel card quotes are easy to find and prices are extremely competitive.

In the 1980s businesses in the United Kingdom began using cards and transaction sheets that required signatures for verification. This allowed companies to more easily keep track of expenses and reimbursements among other factors. This also added much needed security for car and truck operators who until then carried cash, thus reducing their vulnerability to criminals while travelling. Over time, the technology has evolved alongside those of other financial transaction services, first utilizing magnetic strip technology before moving to up to date smart chip and PIN technology.

Fuel cards are associated with many pros and cons, especially when compared with conventional credit or debit cards. Some of the pros of these services include fraud prevention, separate book keeping enabling easier tax information, reduced administration costs, and the ability to set limits and other designations in regards to fuel purchasing patterns. Card companies also offer savings to businesses by allowing them to purchase gasoline at wholesale prices rather than being subject to fluctuations of prices over time or from region to region.

Some cons associated with these services include the fact that card cancellation periods are often longer, credit periods are often much shorter, and sometimes monthly or annual credit provision charges are applied. There is also greater liability on the part of the customer in regards to fraudulent card uses. Cards that are meant for individual retail use rather than wholesale business use often are subject to pump, rather than wholesale, prices, thus cancelling the pro as listed above.

Choosing the right service often entails a look at what an individual’s specific needs are. Certain cards and companies offer better deals to business and fleet managers while others are more beneficial for private use. Either way, fuel cards are a great way to separate fuel expenses into their own account in order to save time and money for the client.