If you’re new to fuel cards, chances are you’ve been keeping your fleet on the road using cash, reimbursing driver expenses, company credit cards or a mixture of all three. This is highly inefficient and opens your business up to fraud.
Why Use a Fuel Card?
For businesses with a mobile workforce, fuel cards are the best option available. They are safer than cash, both for companies and individual drivers, and more efficient than credit cards. They can also provide businesses with valuable savings through detailed reporting on fuel spend and usage. Businesses can then use this information to identify areas of inefficiency within the fleet.
As well as improving fuel efficiency, fuel cards improve the efficiency of administrative processes linked to running a fleet.
Save Time and Money
With fuel cards, all transactions are recorded. This allows the amount of fuel being used to be monitored, which is the first step to reducing spend and finding savings. Once inefficiencies are identified, measures can be taken to resolve them.
For instance, the report may highlight a driver who is using considerably more fuel than others in the fleet. Further investigation might find that this is due to an inefficient driving style, in which case driver training could be organised.
When using fuel cards, administration becomes a much simpler and more accurate process. Organising the refund of fuel expenses to drivers becomes a thing of the past and reclaiming VAT becomes easier without having hundreds of receipts to file through, saving businesses both time and money.
Because all transactions are recorded and open to scrutiny, fuel cards minimise the risk posed by fraud. Unusual or suspicious purchases are easily flagged up and can be addressed by the fleet manager. To prohibit misuse, businesses can match their fuel cards with vehicle registrations, meaning fuel can only be purchased for that specific vehicle. This ensures corporate fuel cards are only being used to buy fuel for corporate vehicles.
The alternative to fuel cards, cash, can open a business up to being cheated by its own drivers, as it makes it easy to claim for fuel that was never purchased. Yet, fuel cards are also the safer option for drivers themselves. For those completing long distance journeys or driving heavy duty vehicles, carrying the cash required to keep tanks topped up would be dangerous and make them a target for crime.
If a fuel card is ever lost or stolen it is cheap and easy to replace. Hard cash is more difficult to replace. And, with a 24 hours service, UK Fuels can block fuel cards immediately meaning should a card be misplaced, it can’t be used to make any purchases.