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Fuel cards compared to credit cards
– what’s the difference?

A fuel card is similar to a credit card in many aspects – both facilitate payments at a network of sites. However, when it comes to managing fuel expenditure for your business, fuel cards offer some distinct advantages. This includes access to discounted fuel, HMRC compliant VAT invoicing, access to 24/7 reporting tools to help understand and manage your fuel usage and much more.

The table below lays out the key differences:

Fuel Cards

  • Discount fuel prices available
  • Better security and prevention of fuel fraud with cards linked to a vehicle/driver
  • No interest on purchases
  • Employees can only purchase fuel (and related services like windscreen replacement, tyres and M6 toll where selected)
  • No need for receipts
  • Simple invoicing with clear VAT separation
  • HMRC approved bills
  • Card management tools
  • Ability to monitor filling patterns
  • Fleet efficiency & MPG reporting
  • Reduced internal administration costs
  • Some cards offer points/rewards scheme

Credit Cards

  • Discounts on fuel prices not available
  • Both fuel and non-fuel fraud is harder to identify and prevent (cards are not linked to specific drivers/vehicles or limited just to fuel)
  • APR rates vary and offers may change after introductory periods, plus interest payable on purchases
  • Employees can purchase anything
  • Need to keep all your receipts
  • Invoicing with VAT is a longer process
  • Some offer a rewards scheme

As you can see, there are many distinct advantages that a fuel card can offer over a credit card. If you’re still unsure on how a fuel card can aid your business, our team of experts are on hand to help further explain the benefits.