How do you pay for fuel?

Most people will answer with cash or a bank card, but you might want to explore a third option: fuel cards.

Fuel cards are another helpful way to pay for petrol and diesel. This article will cover how a fuel card works, what you can use it for, who’s eligible for one, and other key FAQs.

What is a fuel card?

Fuel cards are like credit cards for fuel (petrol and diesel).

You go to the petrol station, fill your car’s tank, and then pay for the fuel with the card. The assistant will swipe it or insert it into the card machine like a normal credit or debit card. Easy!

Allstar and UK Fuels are popular fuel card companies. You can also use petrol-station-specific cards, such as BP fuel cards. However, these limit your options, as you can’t use them with competitor brands.

How does a fuel card work?

Fuel cards are payment options for buying petrol or diesel. Like a physical credit or debit card, you give it to the assistant when it’s time to pay.

However, unlike your personal card, payment is sent to your employer as a bill. You won’t need to settle the charge. 

You must provide your car’s registration number when you pay with your card. You may also be asked to give the car’s mileage. The assistant will enter this information into the till after swiping your card to verify your registration matches the vehicle registered with the card. 

These checks might seem unnecessary, but they’re in play to ensure you’re using the fuel card appropriately to your employer. No filling up friends' and family's tanks here!

Who uses fuel cards?

Fuel cards are typically used by employees who drive for work, with companies covering costs and verifying usage for the correct vehicles.

Examples include delivery drivers, contractors, and emergency service personnel like police or ambulance drivers. 

Employees with company cars may also use fuel cards, but this ultimately depends on company policy.

Are fuel cards worth it?

Fuel cards are worth it as they make expense claims much easier and faster for company accountants. 

Rather than sorting through loose receipts and one-off charges, fuel cards provide streamlined bills and reduce the chance of fraud, as they’re only eligible for the company car. 

Not only that, but fuel cards can save money—as much as 10p per litre of petrol for certain cards.

However, there are a few disadvantages you need to consider:

• Some cards have a £10 to £20 annual fee
• Not all petrol stations accept fuel cards

Can fuel cards buy anything else?

Yes and no, it depends on what your company has set up on the card account. 

Some cards are restricted to fuel purchases, while others also cover AdBlue, oil, or even car washes.

You can even find fuel cards that cover the cost of electric vehicle charges. 

Can self-employed people use fuel cards?

Yes! Self-employed people can also use fuel cards, but only if they have a VAT-registered company. 

Note that some fuel card companies require a monthly minimum spend, so it might not always be advantageous.

Can I use a personal fuel card?

No. Fuel cards are only for companies. 

You can’t use a fuel card for personal use or if you’re a freelancer without a VAT-registered company. 

How do I buy a fuel card?

Securing a fuel card is simple! You can apply for a card online with companies like UK Fuels and All-Stars. 

You’ll have to enter personal information, business details, and information on how you’ll use the fuel card (e.g., how many cars you need to fuel). 

Final thoughts on fuel cards

Fuel cards help businesses streamline expenses and allow employees to pay for fuel easily while on the clock.

Are fuel cards worth it? Well, that’s up to you to decide. Whether you’re looking to stay more organized or maintain professional expense management, fuel cards are an excellent option to consider.

Keep learning via the Bumper blog.

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