How does a fuel card for business work?

Fuel card for business: An overview
  • Debit card
  • International business

A fuel card for business offers many advantages for companies with vehicle fleets or employees who are frequently abroad on business trips. However, in addition to savings contracts with full cost control, fuel cards for business are also subject to some restrictions, such as limited use at selected petrol station brands or foreign travel outside the contractually agreed region. All information on fuel cards and better alternatives is provided in the following article.

What is a fuel card for business?

A fuel card for business is usually issued by oil companies and enables cost savings when using petrol stations. Fuel cards for small business are also available, depending on the provider, but large companies usually receive more lucrative offers. The cards can be used individually by each employee and limits can be set to further increase security.

In addition to the cost factor, fuel cards offer the additional advantage that they can significantly reduce administrative costs and at the same time increase transparency with regard to fuel consumption. This makes it easier for companies to better control their vehicle fleet or individual employees on business trips and to check all expenses.

Who are fuel cards suitable for?

Fuel cards for businesses can save resources and significantly reduce the bureaucratic workload of large and small companies. The fuel cards are primarily suitable for businesses with a fleet of vehicles, such as delivery services, logistics companies or taxi firms.

However, a fuel card can also be suitable for companies without a fleet whose sales staff are frequently on business trips. A fuel card for business ist not only suitable from a financial point of view, but also allows companies to control their consumption and reduce the administrative burden without having to collect and submit receipts.

What are the advantages and disadvantages of fuel cards?

A fuel card for business as well as fuel cards for small business offer many financial and administrative benefits. Every employee can use the card on business trips without any cash risk. Companies are able to create a transparent overview of all employee expenses even without a physical receipt. In addition, companies can save money with discounts. Depending on the provider, the fuel card can also be used in other EU countries, either for fuel or for tolls and other services.

One disadvantage is that fuel cards for businesses are restricted to the respective partner petrol stations and are therefore tied to a limited network. If there is no petrol station of the provider nearby, this can lengthen the route in the worst case. In addition, the cards are often limited to the EU area. Fuel cards for small business may offer fewer advantages compared to companies with a large fleet, as each card has a monthly cost and may be linked to minimum amounts.

Advantages of fuel cards

  • Cashless refuelling
  • No cash risk
  • Transparent overview of employee spending
  • Savings through cooperations
  • Easy administration
  • Can also be used in other EU countries
  • Payment of tolls and other services

Disadvantages of fuel cards

  • Limited to partner petrol stations
  • Inflexible for non-covered services
  • Usually cannot be used outside the EU
  • SMEs may have fewer advantages through cooperation
  • Monthly or annual fees or minimum amounts

amnis: the flexible alternative to a fuel card

Even though fuel cards certainly have a number of advantages for companies, the disadvantages can have a negative impact on the business environment, especially for SMEs. Companies need flexibility when choosing the right petrol station and employees need cash for business trips within the country and abroad. This is where the multi-currency business debit card from amnis comes into play.

With the debit card, it is easy to pay at any petrol station provider without restrictions and withdraw money from all Mastercard ATMs worldwide. The best thing is that if there is a sufficient balance in the respective currency, no currency exchange margin is charged. Even if the account is not covered in the required currency, both large and small companies receive lucrative conditions without any hidden extra fees.

In addition to financial flexibility, the physical and virtual mastercards from amnis also make accounting easier. Transactions are automatically tagged based on merchant type – helping to identify fuel spend for even better reporting. Receipts can be photographed using a mobile phone and attached to a transaction with just a few clicks. Of course, companies have the option to set and, if necessary, adjust budget limits to provide each department and employee with exactly the right budget.

Test your free trial now

amnis offers companies financial services to make all transactions as cost-effective and transparent as possible. With an amnis account, you can benefit from regional payment networks such as SEPA or ACH in addition to SWIFT, even if your company is based elsewhere. Try amnis for free to familiarise yourself with all the benefits and significantly reduce your transaction costs.

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Sabrina Maly
As a marketing manager at amnis I provide SMEs with fx market, international business and news updates on our blog & FAQ page.
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