For businesses with vehicle fleets or several employees who drive as part of their job, fuel cards are essential. By using corporate fuel cards, your business can better budget for gasoline expenses and gain improved insight into how employees are spending your organization’s money. At Hydrogen, our card issuing program can provide physical and virtual cards with business fuel card benefits. With Hydrogen, you won’t deal with minimums, lockups, or program setup. Instead, you can enjoy savings, efficient features, and fast and easy setup and integration.
What Is a Fuel Card?
If your business involves having vehicles on the road, fuel will be one of your organization’s largest expenses. Gas prices are unpredictable, increasing and decreasing based on outside factors beyond anyone’s control. Fuel cards are a more efficient way to manage maintenance and fuel expenses for your company’s vehicles. Fuel cards go by several names, such as:
- Business gas cards
- Business fuel cards
- Employee fuel cards
- Corporate fuel cards
- Corporate gas cards
These cards tend to be fuel credit or debit cards. Many fuel cards can only be used at certain gas stations like Citgo, Chevron, or Shell and can be used to purchase gasoline, diesel, or items in the store.
Both businesses and consumers can use fuel cards. These cards allow your employees to pay for fuel without the need to carry cash. When your employees use their fuel cards, you can pay their gas expenses to the card issuers directly instead of asking employees to pay for the gas and request reimbursements later.
How Do Fuel Cards Work for Employees?
If your company’s fuel cards are fleet cards, you may also allow employees to use these cards to pay for vehicle maintenance and repairs on top of paying for fuel. Corporate fuel cards work similarly to other credit cards. When one of your employees goes to a gas station, they can use the fuel card by handing it to the cashier or inserting it into the terminal at the pump. If the fuel cards are limited to certain chains, your employees can only use these cards at those specific gas stations.
How Can Fuel Cards Help My Business?
Fuel cards can help you grow your business. By allowing your employees to use fuel cards, you can restrict their allowed expense categories. Aside from gas stations, these cards can’t be used at other retail shops. Your employees will be able to fill up their vehicles with the fuel needed to arrive on time to their destinations, ensuring your business functions efficiently.
When you use fuel cards, your business can streamline the reimbursement process. Fuel cards also allow you to control expenses by preventing losses due to fraudulent reimbursements and inflated expense reports. Fuel cards may help your business track fuel expenditures by employee, department, and across the company.
If you have a fleet, fleet fuel cards will allow you to send money where it needs to be, instantaneously. When you can track expenses and reduce losses, you can devote the money you save to growing your business.
Advantages of Gas Cards
For simplified management of your fleet, distribute gas cards to your employees that come with set spending restrictions. Fuel cards can offer several advantages to your business, such as:
- Real-time monitoring: With fuel cards, you can monitor your employees’ transactions 24/7 in real-time, and your business administrators will have the needed oversight of expenses. For better bookkeeping, you can create cards for each of your employees and automate the collection of receipts.
- Controlling spending: Limit your employees to gas purchases or include other categories for spending like hotels and food. You can easily modify the categories via mobile or desktop.
- Easily capturing receipts: Gas cards allow you to capture receipts easily, which is essential for tracking your business expenses. Fuel cards make the task of managing your fleet much simpler.
- Instantly transferring funds: Say goodbye to the hassle of reimbursement. Another advantage of gas cards is that they allow your employees to request funds to make purchases, and you can approve and transfer funds in seconds. This allows your business to avoid unnecessary delays while your employees are on the road.
Fuel debit cards don’t charge interest, so your employees’ purchases at gas stations won’t add to any business debt. With prepaid business cards, you may also be able to earn cashback on each of your employees’ gas station purchases.
Disadvantages of Gas Cards
There are some potential disadvantages of gas cards that you may want to consider before you implement these cards, such as:
- Overpaying employees may occur: If employees are using fuel for personal use or driving gas-guzzling vehicles, you may overpay for fuel. Employees may also face different expenses depending on where they live and how many miles they drive. If one employee is using a fuel-efficient vehicle while another is driving an SUV, the reimbursements to the gas cards may not be equitable.
- Controlling costs can be difficult: It can be difficult to track the fuel used by your employees for business use versus personal use. If your employees use their personal vehicles for work, you cannot control the type of vehicle they drive, which means a gas guzzler will cost you more. You also may be relying on your employees to be honest and accurate when reporting their business use versus personal use.
- Resolving overpayment can be hard: It can be difficult to rein in over-reimbursement after it’s already taken place. If overpayment is occurring due to mileage rates and car allowances, this problem may be exacerbated by fuel cards. Cutting back on benefits due to overpayment will likely lead to employees being unhappy about a reduction in benefits.
Issue Fuel Cards with Hydrogen
Is your business looking to issue fuel cards to employees? At Hydrogen, we accelerate digital financial innovation by helping organizations use a single platform to build hundreds of solutions quickly, including savings, lending, credit, insurance, and investing solutions. From startups to large enterprises, any company can use our innovative platform to accelerate its product development.
For your team’s product strategy, we offer decentralized products, libraries, apps, and APIs focused on financial products. If you are looking to build a fintech or blockchain application, Hydrogen is your go-to platform. Our easy-to-use, innovative platform gets products to market quickly. Sign up for access to Hydrogen today for convenient fuel cards and more.