So what exactly is a gas card? Most people know that gas cards make life easier for businesses and individuals trying to keep track of their fuel expenses, but the details of how they work and their additional benefits remain a relative mystery! This article helps explain what a fuel card is and how it makes your life easier. Whether you are an individual, small business owner or business, fuel cards will save you time and most importantly money.
What is a gas card?
A gas card is a lot like a regular credit card in that you can make purchases on credit and then pay for these purchases at a later date. They even look like credit cards, with the same collection of information embossed on the card (for example, your name, card number, expiration date, etc.) and often the symbol of the credit company you are using. are associated (eg VISA, MasterCard).
Controlled spending
But unlike a regular credit card, gas cards are limited to fuel and fleet related expenses (eg tires). You can’t use it like you would a regular credit card, just to pay for gas and other card-related purchases. So wait … if you are limited, what is the advantage of having a fuel card vs. a normal credit card? In fact, the ability to restrict purchases is one of the key benefits; If other people use the card (for example, employees), you can be sure that they are using it only for the purpose for which it was designed!
Optimized reports
The other key benefit of gas cards is that all purchases made with the card are tracked and managed, so you don’t have to worry about spending hours reporting or doing your taxes every month. When you swipe your card at a gas station, the transaction data is sent back to a database that stores all of this information for you. That means that when you receive your monthly report (or log into their website to access your data), all your transaction information is already organized and tabulated for you. You can then use this data to pass it on to the tax collector, your boss, or perhaps analyze it yourself to see how much fuel you are actually using. So instead of using a log book or collecting receipts, use a gas card and all your fuel and fleet purchases will be tracked and accessible in a report format.
Tired of managing cash?
Not having to use cash is a great advantage of gas cards. Anyone who has to manage their own fuel expenses or the expenses of others (eg employees) and does so by handing out cash knows how difficult it is. Dealing with cash is the ultimate time gap! You have to calculate how much is needed, or give it to your employees (or convince them to spend their own money up front!). Make sure they collect the receipts for every purchase, make sure they return them to you. .after all that … you have to spend hours adding up each employee’s gas expenses to make sure the books balance out! What a monumental waste of time! Thank goodness for gasoline fleet cards: With a fleet card, your employees can simply swipe a card each time they need to fill
Gas cards sound great!
By now, you are probably thinking about all the time you waste dealing with gas expenses and are ready to accept the convenience of the humble fuel card. Well hold your horses, make sure you research the right card for you. There are many different options, but most fall into two categories: oil company cards (eg Shell, BP, Caltex, Mobil) and standalone cards (eg Motorpass).
Generally the difference is the fuel ‘discounts’ when you go with an oil company card (this means you are tied to going to the company all the time, which means you don’t always get the cheapest price and often has drawbacks) and greater coverage. and account features when you go with a standalone gas card (for example, Motorpass has 90% service station coverage in Australia and the best reporting capabilities of all cards).
Thank you for reading!