Fuel Card Requirements and How to Apply for a Fuel Card

Last Updated August 19, 2024

Fuel is unsurprisingly, one of the costliest expenses for trucking businesses. That’s why the most successful owner-operators find ways to save dollars on fuel, one of which is by investing in a fleet fuel card.

A fuel card, which is used similar to a credit card, is used for fuel discounts and other vehicle-related services, such as truck maintenance.

If you run your own trucking business, it’s critical to explore fuel cards and to learn how to apply for them. By filling out your fuel card application, you’re taking an important step toward saving cash that you can in turn invest back into your business operations. Continue reading to find out how to apply for your card step-by-step, along with what’s required to obtain a card, the fees that come with them, and whether or not they’re worth it in the long run.

What Is a Fuel Card?

A fuel card, also known as a fleet card, is a payment method designed specifically for fueling and maintaining vehicles. It functions much like a credit card but is tailored to cover fuel and other vehicle-related expenses. Fuel cards are widely used by trucking companies and businesses with large fleets to simplify their fuel purchases and monitor fuel usage.

Fuel cards provide detailed reports on fuel expenses, which helps companies track spending, identify potential savings, and even improve cash flow. Many cards also offer discounts on fuel purchases. Obviously, that can add up to significant savings over time. Additionally, fuel cards can ease administrative burdens by consolidating fuel expenses into a single, manageable account.

Businesses can set limits and controls on their fuel cards to restrict purchases to fuel and maintenance services only. This helps prevent unauthorized spending and improves overall financial oversight. With these benefits, fuel cards are an effective tool for companies to manage costs and improve operations.

How Can Trucking Companies Benefit From a Fuel Card?

Fuel cards offer numerous benefits to trucking companies. One of the primary advantages is cost savings. Many fuel cards provide discounts at the pump. Furthermore, fuel cards often come with rewards programs that offer cash back or other incentives, further improving savings.

Beyond cost savings, fuel cards offer control and monitoring of fuel expenses. With detailed reporting, trucking companies can track fuel purchases by driver, vehicle, and location. This information offers valuable insights into fuel usage patterns. The data helps in identifying inefficiencies and optimizing routes to save on fuel consumption. It can also guide whether or not a trucking company should charge a fuel surcharge.

Key benefits of fuel cards for trucking companies include:

• Cost Savings: Access to fuel discounts and rewards programs.
• Expense Control: Set spending limits and restrict purchases to fuel and maintenance services.
• Detailed Reporting: Monitor fuel usage by driver, vehicle, and location.
• Administrative Efficiency: Simplify expense management by consolidating fuel costs into one account.
• Fraud Prevention: Reduce unauthorized spending with purchase controls.

By leveraging these benefits, trucking companies can manage their fuel expenses more effectively. Fuel cards are an intelligent, proactive choice for any trucking business.

Standard Fuel Card Application Requirements

Applying for a fuel card is a process that requires meeting several standards that help providers assess your eligibility. This information helps them know whether or not you can manage the card responsibly. Typically, you can submit your fuel card application online.

Here are the typical requirements you’ll need to prepare for:

• Credit Check: Similar to a credit card, most fuel card providers will conduct a credit check to evaluate your creditworthiness. A good credit score can improve your chances of approval and might result in better terms and conditions.
• Business Information: You will need to provide detailed information about your business, including the legal business name, address, and contact details. This information helps the provider understand the scale and nature of your operations.
• Financial Documents: Be ready to submit financial statements, such as profit and loss statements, balance sheets, and cash flow statements. These documents demonstrate your business’s financial health and ability to handle additional credit.
• Tax Identification Number: Your business’s employer identification number (EIN) or tax identification number (TIN) will be required. This is a standard part of most business-related financial applications.
• Fleet Information: Information about your fleet size and the types of vehicles you operate can also be necessary. This helps the provider tailor the fuel card program to better suit your needs.

By preparing these documents and information in advance, you can streamline the application process and increase your chances of securing a fuel card that meets your business’s needs.

How to Apply for a Fuel Card

To make sure your application is successful, take time to plan and prepare for your fuel card application.

Here are the steps you need to follow for a successful application:

1. Check and Consider Your Credit Score

Before you apply for a fuel card, it’s important to review your credit score. Most providers will evaluate your credit history to determine your eligibility. A good credit score can not only increase your chances of approval but may also help you secure better terms and interest rates. If your credit score is less than ideal, consider taking steps to improve it before applying.

2. Identify Your Biggest Wants and Needs

Determine what you need most from a fuel card. Are you looking for the best discounts, detailed reporting features, or flexible payment options? Make a list of your priorities to help narrow down your choices. Knowing what you need will make it easier to compare different fuel card offerings and select the one that best suits your business.

3. Do Your Homework: Research Fuel Card Suppliers

Research various fuel card providers to find out what they offer. Look at their terms and conditions, fees, discounts, and customer reviews. Comparing multiple options will give you a better understanding of which provider offers the best deal for your specific needs. Don’t hesitate to reach out to providers with questions to clarify any uncertainties.

4. Gather Your Necessary Documents

As discussed in the previous section, you will need to prepare several documents for your application. These typically include your business information, financial documents, tax identification number, and potentially a personal guarantee. Having these documents ready will streamline the application process and demonstrate your preparedness to the provider.

5. Submit Your Fuel Card Application

Once you have chosen a provider and gathered your documents, you can submit your application. Many providers offer online applications for convenience. Ensure that you fill out all required fields accurately and attach all necessary documents. After submission, the provider will review your application, which may take a few days to a few weeks. Be prepared to provide additional information if requested.

Considerations When Researching Fuel Cards

When choosing a fuel card for your business, consider the following key factors:

• Fees and Charges: Evaluate monthly fuel card fees, transaction fees, and any additional charges.
• Discounts and Rewards: Compare fuel discounts and rewards programs to maximize savings.
• Acceptance Network: Ensure the card is accepted at locations frequently used by your fleet.
• Reporting and Analytics: Look for detailed reporting features to track fuel usage and expenses.
• Spending Controls: Choose cards with spending limits and purchase restrictions to prevent unauthorized use.
• Customer Support: Check the provider’s reputation for reliable customer service.
• Contract Terms: Review contract length, cancellation policies, and any penalties for early termination.

By focusing on these considerations, you can select a fuel card that best meets your business needs and enhances operational efficiency.

In-Summary: Applying for a Fuel Card

Applying for a fuel card requires careful planning and preparation. Start by checking your credit score and identifying your specific needs. Research various suppliers to compare fees, discounts, acceptance networks, and additional features. Gather all necessary documents, such as business information and financial statements, to streamline the application process.

By following these steps, you can secure a fuel card that manages your fuel expenses effectively and provides valuable discounts. Thorough research and careful selection are key to finding the best fuel card for your trucking business.

How to Apply for a Fuel Card FAQs

How much do fuel cards cost?

Fuel card costs vary depending on the provider and the features offered. Typical costs may include monthly fees, transaction fees, and sometimes setup fees. Be sure to review the fee structure of each provider to understand the total cost.

Are fuel cards worth it?

Yes, fuel cards are often worth it for owner-operators and trucking companies. They offer significant benefits such as fuel discounts, detailed expense tracking, and spending controls. When utilized to the full extent, this tool helps with cost savings and simplifies overall operations.

Are fuel cards hard to get?

Fuel cards are generally not hard to obtain, especially if your business has a good credit history. Providers will typically review your credit score and business financials to determine eligibility. Proper preparation can help you meet their requirements to successfully navigate the application process.

Is it worth getting a fuel card?

For most trucking companies, getting a fuel card is highly beneficial. Fuel cards provide discounts, simplify fuel expense management, and offer tools for monitoring and controlling fuel usage. These advantages can lead to substantial savings and better financial management.

How many trucking companies use a fuel card?

How much a fuel card is used depends on the size of the trucking company. According to the Mercator Advisory Group, 60-70% of small carriers (15-99 trucks) use a fuel card, and fewer than 10% of micro-carriers (fewer than 15 trucks) use a fuel card. Meanwhile, 90-100% of carriers with 100+ trucks use fuel cards.