Are fuel cards credit cards?

Are fuel cards credit cards?

No, they are different. With credit cards you can buy fuel from service stations. But you can also use them to buy other goods and services.

With a fuel card, you’re restricted to fuel and other vehicle related products. They’re easy to use, your driver just fills up and then pays with the card. You can set a limit on the amount you spend. And you can keep track of everything from an online account, so it’s easy to keep on top of your fuel purchases.

The differences between fuel cards and credit cards

Let’s take a closer look at the key differences between the two types of cards. Let’s start off with fuel cards. With these, you get:

• Discount fuel prices (depending on your provider).
• Better security and prevention of fuel fraud.
• No interest on purchases for up to three weeks.
• Employees can purchase fuel and other items, such as AdBlue.
• No need for receipts!
• Simple HMRC-compliant invoicing with clear VAT separation.
• Card management tools in an online portal.
• Keep track of filling patterns between drivers.
• Fleet efficiency and MPG (miles per gallon) reporting.
• Reduced internal administration costs.
• Some cards offer points/rewards scheme.

But with credit cards, you’ve get these benefits:

• Pay for fuel and other items, such as business trip items (hotels, drinks, food and much more).
• Employees can purchase almost anything they want (so, you’ll need a high level of trust there).
• No discounts on fuel prices.
• Fuel and non-fuel fraud is harder to spot and stop.
• APR rates vary. Plus, offers can change over time and interest is payable on your fuel purchases.
• You’ll need to keep track of all your receipts.
• Invoicing with VAT is a longer process.
• Some credit cards have a rewards scheme.

The main differences? A fuel card often has discounts on fuel prices, but you can only really use it to buy fuel.

However, that does put you in total control of your fuel expenses. And it makes it much easier to reclaim VAT.

On the flip side, with credit cards your employees can pay for anything. It simplifies your expenses, but at the same times opens up a lot of risky opportunities for fraud and controlling spending.

Best fuel cards in the UK

Fuel card	Benefits	Stations in network
Fleetone Fuel Card	Accepted at over 4,100 stations in the UK, with competitive pricing at a weekly fixed price. You get simplicity in one invoice and an online account, too	4,000+
Esso National Fuel Card	Wholesale fuel prices at Esso and pump prices at partner stations. Payment choices are between fixed weekly prices or pump prices	3,400+
Smartdiesel Fuel Card	Discounts for big spenders. It comes with a clear price calculator, which helps to keep costs down. The more you bulk buy, the more you’ll save	3,000+
Shell CRT Fuel Card	Use at over 50% of UK motorway stations. You get competitive weekly prices and access to high-efficiency FuelSave Diesel	1,000+
FuelGenie Fuel Card	This fuel card features supermarket loyalty points, so refuel with this and you’ve got bonuses coming your way at Morrisons, Sainsbury’s and Tesco	1,350+

There are plenty more on the market, of course, but every business (and fleet) has different needs. That’s why it’s important to compare the market to find the right provider that’ll match what you’re after.

The business benefits of fuel cards

Credit cards have the benefit of more spending flexibility, but this opens your business up to a higher risk of theft.

But what about fuel cards? Well, you’ve got a golden chance to make big annual savings.

We have a full guide to the benefits of fuel cards to check out but we’ve also summarised these below.

Increased card security

The cards are much safer to use than cash or credit cards. Fuel cards give you a bit more protection as they’re PIN protected. And, of course, you can only use them to buy fuel from the stations in your network.

That means if it’s lost or stolen, the card can’t be used at other stores.

Plus, a fuel card allows suspicious purchases to be flagged up instantly, cutting the risk of fuel fraud, which is a huge benefit over cash and credit cards.

Data, data, data (and reporting)

You get an online account with your fuel card. In that, you can keep track of every single card you have in your fleet.

That means you can easily keep track of every transaction. That saves you a lot of time in the future, because you don’t need to tell drivers to track their receipts or keep an eye on how much their spending.

Instead, you track it all from your account. And you can pull data out into reports whenever you need to.

Lower your fuel expenses

Fuel cards can give you access to fuel discounts from a fixed commercial price or pump related price. Depending on the provider you go for.

But you may be able to get discounts at the pump. That can really stack up over time!

By the way, if you want more help on lowering those costs then check out our fleet fuel saving tips guide.

Improved cashflow

You only pay your bill on a fixed term basis, so it’s much easier to manage your cashflow and budget properly.

For effective fleet management, that’s really a big deal. It keeps costs down. And you ensure you have a shipshape operation at all times that takes into consideration your overhead.

VAT compliant invoices

Here’s a big one! Because you can easily keep track of fuel transactions, that makes it miles easier to reclaim VAT from HMRC.

All you have to do is send off your HMRC-compliant invoice and voilà! That’s taken care of, giving you peace of mind. Plus, it makes it easier to reclaim that money for your budget.

You can set purchase restrictions

If you want to make sure drivers don’t go over a spending limit, you can set a restriction on individual drivers. Pretty handy if you want to stay on budget.

Ultra-convenient for drivers

Don’t forget about your drivers, they’ll love fuel cards too!

• No need to carry around (and worry about) loose change.
• No need to keep track of loads of receipts.
• It’s super easy to pay.

It makes life much more convenient for them, allowing them to focus more time on their job.

Do you want a fuel card?

So now you’re all updated on what these cards do, all that’s left is to compare the market to find the right provider. It’s free to do! Just follow these three quick steps:

1. Enter your business details in our form.
2. We’ll search the market.
3. You get your recommendations.

You take your pick from there and you’re forwarded to your provider to start the application. So, you’re only a few clicks away from making big savings!