Today, the fuel and fleet cards have been gaining prominence! It has been a great help for multiple industry sectors, such as construction, delivery, and trucking companies. Companies have successfully tracked the fuel and petrol consumption of the concerned drivers and employees using these cards. However, there's more to know about these cards, especially the repayment terms.
Fleet and fuel cards and repayment
Most fuel consumption and fleet maintenance cards work like a charge or credit card. And the repayment terms get modified fast. Generally, the repayment terms are very similar to the small business gas cards, which will generate interest on any balance amount that is not paid. However, the fleet charge cards should be paid in all the billing cycles. If there is an unpaid balance, it can lead to a later charge. You can check out the Superfleet Speedway fuel cards to learn more about them.
The repayment terms for both fleet charges and credit cards differ. They are:
- Fleet charge card – All due payments must be cleared by the end of the billing cycle. If not, users might have to pay a late charge.
- Fleet credit card – Based on the card and the service provider, the bill can bbe generated monthly or bi-monthly. If there's an unpaid amount, it will develop an interest.
Who is accountable for the payments? The accountability is generally shared jointly between the person with the corporate account and the concerned business. The fleet card will not get highlighted in anyone's credit report. But just in case a company can't pay the bill amount, the personal guarantor or the company will have to share the liability.
The rewards and discounts
One of the best advantages of the fleet card is the ability to earn rewards and discounts on vehicle and gas purchases. The buys generally range from repairs, gasoline, and other maintenance expenses related to the fleet, and they need to visit services such as iCompario to compare. Based on the service provider and the card used, the cardholders are expected to earn somewhere between $0.03 and $0.10 per gallon. The earnings are given as discounts at the pump stations. Else, it is applicable as a reward on the credit statement.
The purchase limitations
The fuel and fleet cards provide the cardholders with the capacity to limit and manage employee spending. It also enables fleet managers to ensure that their employees are using the cards responsibly.
With the help of fleet and fuel cards, fleet managers can set the daily and monthly limits for each card to ensure the employees use them with the proper know-how. When the card reaches its limit, you can't use it to make a purchase. This way, the fleet managers can control fuel consumption and stop irrational use. As a result, they can keep their fuel expenses in place and make the necessary cuts based on employee circumstances.
