A fuel card is an electronic payment method that allows drivers to purchase fuel from a gas station without having to pay cash or credit their bank accounts. The driver charges the fuel to the card and their company pays for it. A new standard in the trucking industry, these convenient cards have changed how truckers do business.
How Do Fuel Cards Work?
Although fuel cards function similarly to debit or credit cards, they’re intended for use by businesses to pay for fuel.
Using your fuel card is simple. When you get to the pump or fuel desk, swipe your card and enter the requested information, which may include your unit number, driver number or trip number, to complete the purchase. Then, you’ll be prompted to enter the amount of fuel you’d like to pump and whether you want a receipt.
Your card will complete the transaction in one of two ways, depending on whether it functions as a debit or credit card:
- Debit card: If your fuel card works like a debit card, the fuel costs will be deducted from a prepaid amount. You can fill up until you deplete the authorized funds available in your account or until your tank is full. This method limits spending and ensures that you don’t go over budget.
- Credit card: If your card operates like a credit card, you will receive a monthly statement from your provider. It will list all your purchases, including what fuel was purchased, how much was used and how to pay your balance at the end of the month.
No matter how your fuel card operates, you can rest assured that it will give you access to an efficient and easy payment process for fuel that saves you both time and money.
Fuel Card Benefits
Below we list out some of the benefits of fuel cards and how they can improve your trucking company.
Discounts
Truck drivers have to make fuel purchases to operate their trucking company, and using a fuel card for those purchases means that you won’t ever have to pay the full price of fuel ever again. You save thousands of dollars over the course of the year on fuel. The savings from those discounts from your fuel expenses end up covering the cost of your factoring fee.
Control Over Your Spending
It is easy to control your spending when using a fuel card. Regardless of whether you have a fleet of trucks or you’re an owner-operator, you are in control. If you have a truck driver who drives for you, you can control and monitor their spending and set budgets and purchase limits. Having this amount of control limits fraudulent activity as well.
Convenience
Having a fuel card is extremely convenient. You or your fleet will never have to pay for fuel out of pocket, and no one will have to incur the cost of fuel. There is no handling of receipts or having to track someone down for reimbursement. Having a fuel card allows you and your drivers to feel comfortable while on the road.
Flexibility
The more flexible your fuel card is, the better. The best fuel cards offer additional benefits like discounts on tires, repairs, lodging, and food and drink at partnering locations. The card app allows you to find the lowest fuel prices and closest locations right at your fingertips. Some apps may also have IFTA reporting too.
Fuel Advances
An additional benefit of having a fuel card is fuel advances. Fuel advances work by your funds getting distributed directly onto your fuel card. When you work with Porter Freight Funding, we will advance your funding straight to your fuel card. This brings you comfort in knowing that your fuel card will always be loaded, and you’ll never need to worry about if you, or your fleet, have enough money for fuel to get home or to your next location.
How Does a Company Fuel Card Work?
Fuel cards are a popular choice for businesses that need to cover fuel expenses for their fleet of vehicles. These cards are designed to make it easier for companies to manage their fleet’s fuel expenses by assigning a single card for each vehicle or driver without managing individual reimbursements.
Although similar to an individual fuel card in many ways, note some key differences that make these cards more beneficial for businesses than alternative fueling methods:
- Manage employee spending: Fuel cards for businesses allow you to monitor your employees’ purchases by driver number, vehicle or location, so you can track exactly where money goes.
- Cover operating expenses: Whether you need to order parts, tires, oil changes and more, your company can easily manage the costs associated with these items through fuel cards. Control features also eliminate the risk of corporate funds going toward unwanted nonbusiness expenses like snacks.
- Receive additional discounts: With volume discounts and other fleet discounts on fuel, you can reduce the cost of running your business, freeing up money for more important things like employee salaries, fleet growth or marketing.
- Enjoy automatic accounting: Fleet fuel cards feature in-depth reporting features that allow you to automatically track fuel expenses and payments, reducing the need for manual data entry for individual employees.
- Increase fraud protection: With multiple layers of security, including PIN numbers and identification requirements, fuel cards offer real-time activity reporting and alerts for all transactions to track company-wide operations and reduce accounting errors seamlessly.
Is It Worth Getting a Fuel Card?
Yes, fuel cards are absolutely worth it. They save you time by allowing you to bypass the manual system of collecting receipts from every fill-up and other expense and ensuring that you can easily streamline your business’s fleet management system. With a fuel card, you can also save money by reducing the overhead costs associated with handling driver funds individually.
In addition, many fuel cards come with helpful apps and software that improve your business’s efficiency and security, and placing all your vehicles on one convenient payment schedule can simplify your accounting process.
Fuel Card FAQs
Have questions about your fleet fuel card? We’ve got answers.
1. Are Fuel Cards Only for Businesses With Many Vehicles?
No, fuel cards are for businesses that need to manage fuel expenses, regardless of their fleet size or the number of vehicles they have. Your business can still benefit from fleet fuel cards if you have one vehicle, as these tools assist with tracking and managing fuel expenses more easily.
2. What Is the Difference Between a Fleet Card and a Credit Card?
Fleet cards operate as charge cards, meaning you must pay off your monthly balance. As a whole, fleet cards offer more security than credit cards, which allow you to carry a balance from one month to the next. Alongside comprehensive transaction details, fleet cards also let you see exactly how much your employees are spending on fuel and other business expenses.
3. How Do Fuel Cards Monitor Expenses?
Fuel cards monitor expenses by recording all purchases. When an employee uses a fuel card, the transaction is logged and reported to your company through your card provider’s virtual account management tools. To retrieve this data, you can log in to your web portal and access dashboards that allow you to view monthly statements, spend reports and other information related to your fuel card activity.
4. Can You Add and Remove Drivers From a Company Account?
Yes, you can add and remove drivers from a company account through your account online.
5. Can You Buy Food With Fleet Fuel Cards?
Your employees can only buy food with these cards if authorized. While most fuel cards solely work for fuel- or truck-related expenses, some owners and operators allow workers to use their cards at the grocery store or restaurant. To see if yours is one of those cards, contact your fleet fuel card provider or review the specific rules of your service.
The Porter Freight Funding Advantage
As a carrier, it’s important to have every tool at your disposal to ensure you’re moving your freight as quickly and efficiently as possible. Fuel is a huge part of your business’s bottom line, but it can also pose a huge hassle to manage. Porter Freight Funding has the solution — our fuel card program allows you to manage your fuel expenses with one easy-to-use tool.
With this card, you can eliminate the complexity of the fuel payment process and take advantage of benefits such as:
- No monthly minimums: You can let your employees spend as much or as little as you want, with no restrictions on how much you can put on your fuel card each month.
- Personalized customer service: Gain access to a dedicated personal representative who will work directly with you to set up your account and ensure your needs are met.
- Discounts: Enjoy discounts of up to 14 cents per gallon when using the card at major truck stops and over 25 cents per gallon at select smaller chains.
- Advance payouts: Receive fuel advances of up to 45% of your load to prevent cash flow issues and avoid the costly late fees other companies charge.
Apply for a Fuel Card With Porter Freight Funding Today
Porter Freight Funding is here to help you save money on fuel. Whether you operate as a business or run the show as an independent contractor, we have a solution. Our EFS fuel cards make it easy for you to save on every fill-up.
Start saving money on gas with EFS fuel card discounts from Porter Freight Funding. Contact us by calling 205-397-0934 or completing our contact form to learn how you can start saving money each time you fill up today.
