Fuel Cards
In the present economic climate, businesses need to explore all options in the
battle to keep cost down. One area of particular of concern to transport businesses
is fuel cost. Keeping fuel costs low is perhaps one of the few variables in a
business over which managers can have some control. An option that many businesses
consider is the option of using a fuel card. There are many good reasons to use a
fuel card and these have to be considered against the times when a fuel card may not
be the best answer.
Fuel cards can often be a better option because it allows companies to manage their
fuel consumption better. An online management system allows the company to receive
reports and respond accordingly. It allows the company to make quick adjustments and
can highlight things like poor route choice which adds miles and cost to a journey.
Comparisons can be made with other fleet drivers to ensure that the optimum routes
are chosen and allows the company to monitor whether unnecessary journeys are being
made. It highlights excessive fuel use by a driver, but it can also highlight
whether a particular vehicle is using more fuel than it should.
Fuel cards can also help to improve security and reduce the chance of fraud taking
place. Drivers do not have to carry cash, which means that driver security is also
improved. As fuel cards invariably use chip and pin security, even if they are lost,
there is very little chance of them being used. Using Smartchip technology, the card
can be monitored wherever it is used, via the online managements system. The pattern
of fuel filling by a particular drive or vehicle can allow for more efficient
control of fuel cost. As the cards also allow reduced administration cost, this can
be built into the overall cost saving of a fuel card. Drivers will often lose
receipts when paying on credit card and this lower administration cost does not have
to be considered when using a fuel card
Bills usually have to be paid on time and can incur penalty costs from the card
administrators, but this can also work to the advantage of the user, as many
companies offer discounts for using a fuel card. Reward schemes are in place on many
cards and the fact that fuel cards also allow a company to buy fuel in bulk can also
mean major savings on cost.
Problems can occur if a fuel card is cancelled or stopped. Even if the fault does
not lie with the company using the card; replacement times can be longer with a fuel
card, which may lead to a great deal of inconvenience. Fuel card providers also wish
to maintain a greater level of control over the cost by providing shorter credit
periods. Card users missing their payment deadline may find themselves facing
penalties. Therefore, it is in the interest of the user to make sure that use of
fuel is monitored regularly. Some cards may require pre payment, which is another
factor which needs to be considered before signing up for a fuel card. More
responsibility is placed on the shoulders of the card user, due to the increased
security measures on the card. It should also be considered that fuel cards may only
be used at certain petrol stations involved in the scheme, therefore routes may need
to be planned to take into account this fact. Some fuel card providers, such as www.businessfuelcards.co.uk can provide a site location service, for example
In the present economic climate, businesses need to explore all options in the
battle to keep cost down. One area of particular of concern to transport businesses
is fuel cost. Keeping fuel costs low is perhaps one of the few variables in a
business over which managers can have some control. An option that many businesses
consider is the option of using a fuel card. There are many good reasons to use a
fuel card and these have to be considered against the times when a fuel card may not
be the best answer.
Fuel cards can often be a better option because it allows companies to manage their
fuel consumption better. An online management system allows the company to receive
reports and respond accordingly. It allows the company to make quick adjustments and
can highlight things like poor route choice which adds miles and cost to a journey.
Comparisons can be made with other fleet drivers to ensure that the optimum routes
are chosen and allows the company to monitor whether unnecessary journeys are being
made. It highlights excessive fuel use by a driver, but it can also highlight
whether a particular vehicle is using more fuel than it should.
Fuel cards can also help to improve security and reduce the chance of fraud taking
place. Drivers do not have to carry cash, which means that driver security is also
improved. As fuel cards invariably use chip and pin security, even if they are lost,
there is very little chance of them being used. Using Smartchip technology, the card
can be monitored wherever it is used, via the online managements system. The pattern
of fuel filling by a particular drive or vehicle can allow for more efficient
control of fuel cost. As the cards also allow reduced administration cost, this can
be built into the overall cost saving of a fuel card. Drivers will often lose
receipts when paying on credit card and this lower administration cost does not have
to be considered when using a fuel card
Bills usually have to be paid on time and can incur penalty costs from the card
administrators, but this can also work to the advantage of the user, as many
companies offer discounts for using a fuel card. Reward schemes are in place on many
cards and the fact that fuel cards also allow a company to buy fuel in bulk can also
mean major savings on cost.
Problems can occur if a fuel card is cancelled or stopped. Even if the fault does
not lie with the company using the card; replacement times can be longer with a fuel
card, which may lead to a great deal of inconvenience. Fuel card providers also wish
to maintain a greater level of control over the cost by providing shorter credit
periods. Card users missing their payment deadline may find themselves facing
penalties. Therefore, it is in the interest of the user to make sure that use of
fuel is monitored regularly. Some cards may require pre payment, which is another
factor which needs to be considered before signing up for a fuel card. More
responsibility is placed on the shoulders of the card user, due to the increased
security measures on the card. It should also be considered that fuel cards may only
be used at certain petrol stations involved in the scheme, therefore routes may need
to be planned to take into account this fact. Some fuel card providers, such as www.businessfuelcards.co.uk can provide a site location service, for example
Shell have over a thousand outletsand individual users will need to know where
to purchase their fuel supplies.