What Is a Fuel Card and How Does It Work?

Last Updated July 19, 2024

Whether you’re a carrier with a large fleet of drivers or a solo owner-operator, running a trucking business is an expensive undertaking. In order to succeed, you need to familiarize yourself with every potential cost-saving measure.

Since fuel is one of the most significant owner-operator expenses, one of the best cost-saving measures you can take is purchasing a fuel card.

Fuel cards, also known as fleet fuel cards, are tailored for businesses in the trucking industry and can be a really convenient, simple way to both save some cash and add an element of control to your business. So let’s break down what fuel cards are, how they work, their benefits, and the different types of cards at your disposal.

What Is a Fuel Card?

Fuel cards are cards that truckers can use at numerous diesel stations nationwide to get a small discount on fuel. These cards, which are issued both by oil companies and specialized credit companies, can either be prepaid or tied to a credit line via the provider.

Fuel cards are incredibly common in the trucking industry, especially in the current market as fuel costs are destined to eat up a big chunk of a trucking company’s budget. Every carrier should look into obtaining a fuel card for themselves and their drivers to lower their overall cost per mile.

How Do Fuel Cards Work?

Using a fuel card to obtain diesel fuel is a straightforward process, as it’s not much different than how you would go about filling up your personal vehicle. The only major difference when using a fuel card is that you will likely have to enter your unit number and driver number at the pump before selecting how much fuel you would like to add to your truck.

As you would with a standard debit or credit card, swipe the fuel card at the pump, enter your information, and begin fueling.

Benefits of Fuel Cards

Fuel cards for truckers and trucking business owners offer numerous benefits. Here are some of the most undeniable benefits of a fleet fuel card:

Easy Way to Save Money

Successful trucking business owners know that every cost-saving measure, no matter how small, counts in the long run. So, whether you’ve obtained a fuel card independently or your financial provider has lent you one, the discount that comes with a fuel card is an easy way for carriers to save a bit of cash when at the pump.

Flexible Spending

Many fuel cards don’t just reduce the amount of money you’re spending on fuel—they can also offer discounts pertaining to lodging, vehicle maintenance, and food and drink at partnered locations. These are just more ways you can save money utilizing a fuel card.

Increased Control and Oversight

The concept of using a fuel card isn’t complex. You’ll know which diesel providers are partners with your card and which are not, so you can more meticulously map out your routes and stops for gas.

If you have a fleet of drivers, fuel cards can be useful to more easily oversee driver performance and efficiency. You can implement spending limits on cards or even individual driver spending limits to give your drivers added incentive to optimize their routes, stay on top of their schedules, and save fuel to the best of their abilities.

Increased Security: You Know What You’re Getting

Utilizing fuel cards drastically reduces the chances of losing money due to fraudulent behavior. With many fuel card programs, you can sign up for automated email alerts for specific transactions (such as unleaded transactions, activity on weekends, or those over a set dollar amount) that might signal shady activity. Many fuel card programs offer enhanced driver monitoring, providing access to every expense, invoice, and even odometer entries via an online portal.

Simplifies Accounting

When a fleet of drivers all use the same fleet fuel card at the pump, it makes life a whole lot easier when the time comes to doing expense reports and year-end accounting duties. Using a fuel card can streamline many of these tasks as many programs include tools that automatically track and report expenses that can then be easily exported into your accounting software. This reduces time spent managing the books and opens up more time for tasks that are more directly tied to increasing sales and revenue.

Disadvantages of Fuel Cards

Of course, there are a couple of disadvantages to fuel cards worth considering as well.

Fuel Station Restrictions

The obvious disadvantage of fuel cards is that you’ll only reap the benefits if you stop at the diesel stations partnered with the card’s provider. This limits you or your fleet of drivers, especially if you’re behind the wheel in a rural area and you’re under pressure to find a cooperating diesel station.

Additional Fees

When provided a fuel card, you may be hit with account setup fees, along with minor transaction fees and monthly or annual fees. While fuel cards, overall, often save truckers money when used wisely, these fees could end up hurting you if you’re not taking advantage of the card’s discounts while getting hit with fees.

Different Kinds of Fuel Cards

There are two standard types of fuel cards: branded fuel cards and universal fuel cards. There are also prepaid fuel cards, though these tend to be a bit less common.

Branded Fuel Cards: These are issued by the fuel companies. A discount on fuel is only applied at the respective card provider’s station.
Universal Fuel Cards: These are the most flexible fuel cards, as they are accepted at the majority of stations nationwide. However, these are usually only usable for fuel discounts, not maintenance discounts like other fleet cards can be.
Prepaid Fuel Cards: A prepaid fuel card is basically a debit card that allows you to continuously load money onto your card.

Difference Between Fuel Cards vs. Credit Cards

Though similar in how they’re used, there are a few differences between fuel cards and credit cards.

First and foremost, fuel cards for truckers are strictly utilized for vehicle-related expenses—most commonly, fuel, maintenance, and potentially food and drink discounts at participating stations. They are issued by third-party providers, either by a specialized fuel card provider or diesel fuel companies themselves (like Shell). Truckers can’t withdraw cash from fuel cards, and unless you’re using a prepaid fuel card, you can’t simply deposit cash onto the card.

Credit cards, which are issued by financial institutions, are more flexible than fuel cards in that they can be used for any purchase at any location that accepts the card. At the end of each period, the balance on the card is paid back to the lender, with interest on the money borrowed paid out as well.

While credit cards are more universally recognized than fuel cards, many carriers enforce their drivers to prioritize using a fuel card, whenever possible, given the specific advantages they provide truckers.

In-Summary: What Is a Fuel Card and How Do They Work?

Studies show that the majority of small carriers (60-70%) currently use a fleet card, while 90-100% of large carriers (100+ trucks) use fleet cards. Even select micro-carriers and owner-operators use them.

By now, you should be able to see why. While there are a couple of minor inconveniences that come with them—such as only being able to use them at partnered petrol stations and some small fees—there are numerous benefits.

Once you’ve determined if purchasing fuel cards for you or your fleet is a financially sound decision, it’s important to do your research to select the right fuel card for your company. You can do that by asking around your network, knowing which fuel card programs you qualify for, talking to customer service representatives, and matching which cards make the most sense for the size and location of your trucking business.

Fuel Card FAQs

Are fuel cards worth it?

Whether or not a fuel card is worth it for a trucking business depends on a few factors, in particular the size of a fleet. Regardless, opting into a fuel card program can be very beneficial for those ranging from solo owner-operators to large fleet managers because of the enhanced security, convenience, access to discounts, and simplified tracking and reporting. Data does reveal that the larger the trucking business, the more likely it is that a fuel card is used.

Do fuel cards save money?

Yes, opting into a fuel card program can save trucking businesses money. You can reap the benefits from your fleet of drivers getting a small discount every time they’re at the pump, which eventually adds up. Plus, you can get discounts on truck maintenance at participating stations.

How do you get a fuel card?

Before anything, check your business credit score so you have an idea of which fuel card programs you may or may not qualify for. Then, note the size of your trucking company. The best fuel card program for a small fleet will likely be different from the best program for a large fleet. Look for cards that extend offers pertaining to not only fuel-related discounts but also maintenance, along with fleet management assistance and payment tracking and reporting tools. Then, get on the phone with representatives before weighing your options.