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. Using these cards, companies have been successful in tracking the fuel and petrol consumption of the concerned drivers and employees. However, there’s more to know about these cards, especially about the repayment terms.
Fleet and fuel cards and repayment
Most fuel consumption and fleet maintenance cards work akin to 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 get paid entirely in all the billing cycles. If there is an unpaid balance, it can lead to a later charge. To know more about it, you can check out the Superfleet Speedway fuel cards.
The repayment terms for both fleet charges and credit cards differ. They are:
- Fleet charge card – Here all the due payments need to get cleared by the end of a 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 get generated on a monthly or bi-monthly basis. If there's an unpaid amount, it will develop an interest.
Are you wondering who is accountable for the payments? The accountability is generally shared jointly between the person who has 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 scope to earn rewards and discounts on vehicle and gas buys. The buys generally range from repairs, gasoline as well as other maintenance expenses related to the fleet, need to visit services such as iCompario to compare. Based on the service provider and the card used, it is expected that the cardholders might earn somewhere between $0.03 and $0.10 every gallon. The earnings are given as discounts at the pump stations. Else, it is applicable as 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 the fleet managers to make sure that their employees are making perfect use of the cards in a responsible manner.
With the help of fleet and fuel cards, the fleet managers can set the daily and monthly limits for each card to make sure that the employees use them with the proper know-how. The moment the card reaches its limit, you can't use it to make a purchase. This way, the fleet managers can effectively 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.
