The best fuel card programs give fleet companies the tools to control expenses and improve operational efficiency. They eliminate the need to track receipts or wait for reimbursements.
Additionally, most fuel cards provide Level III data, including date, time, location, driver, vehicle, odometer entry, and fuel product for every purchase. This information can help streamline IFTA taxes.
Convenience
Fuel is a significant expense for trucking companies, especially if you’re an Owner-Operator. That’s why freight factoring companies offer their clients a free fuel card program, saving them thousands of dollars each year. These cards eliminate the need to advance money for fuel and other operating costs and provide a better way to manage cash flow. Fuel cards are easy to use and provide detailed information about driver spending activities.
Another advantage of using a fuel card is that you can benefit from discounts on fuel at affiliated stations. These can be significant, saving you a few cents per gallon, which may add up to hundreds of dollars in savings throughout 100 refuelings. In addition, many of these cards also offer partner discounts for hotels, truck accessories, and maintenance services.
For trucking fleets, fuel cards can give you greater control over how and where your drivers transact. You can set limits and restrictions, monitor odometer readings, and get real-time detailed reporting on all transactions. This data can help you find the best routes, improve fleet efficiency, and slash operating expenses. The information from these cards can also simplify your International Fuel Tax Agreement (IFTA) filings.
Access to Discounts
Truckers often find fuel cards to be a huge convenience. They allow them to avoid carrying wads of cash vulnerable to theft and reduce administrative expenses incurred by waiting for reimbursements. They also enable companies to track and monitor spending details for each driver, increasing control and decreasing fraud.
Additionally, many modern fuel card programs offer negotiated discounts and value-added services like tire, vehicle service, and hotel discounts. This means that the money saved on diesel can be reinvested into the company and cut other costs. Additionally, many cards do not require transaction fees or general credit card charges, further reducing overhead and improving profitability.
Some fuel cards provide point-of-sale pricing, where the fuel cost is reduced at the time of payment. Others offer a monthly rebate, where the fleet receives a check at the end of the month for the amount discounted from the previous month’s purchases. Regardless of the chosen model, both can save significant amounts for the fleet.
Another key benefit of using a fuel card is that it can be used at any fuel station in the country, not just the ones with which the company has agreements. This allows trucking businesses to save money by avoiding expensive fuel surcharges at stations that are out of their territory or have high prices.
Taxes
Diesel fuel is one of the most significant costs that trucking companies face, so reducing these expenses is critical to maximizing profits. While getting around the need to pay for diesel is impossible, implementing the right fleet card programs can significantly cut costs and improve bottom-line results.
The best fuel cards for trucking offer several features to help reduce operating costs while improving efficiency. They provide a way for companies to track and control spending, eliminate manual receipt collection and entry, and offer more granular details about every purchase than ever before.
Many fleet payment cards also provide automatic International Fuel Tax Agreement (IFTA) reporting to simplify accounting. These consolidated reports save time and money by eliminating the need to collect and organize paper receipts, allowing companies to upload transaction data directly into their accounting software.
Additionally, many fuel cards allow fleet managers to set specific controls that can be triggered when a driver exceeds certain parameters. These limits can include a particular time of day, days of the week, daily transactions, and gallons or dollars per transaction.
These controls can prevent drivers from getting too froggy at the pump and potentially overpaying for gas. This is especially helpful for owner-operators who need to monitor their purchases closely.
Reporting
Whether you’re a fleet manager overseeing dozens of trucks or an owner-operator with a single truck, transparency in your spending is critical. With fuel cards, you can track expenses in real-time and easily audit them while automating IFTA reporting and more via an online account.
In the fast-paced world of trucking, drivers need more time and resources. Fuel cards eliminate the need for advance payments and waiting for reimbursements, giving your drivers the freedom to focus on their deliveries instead.
With a single card and PIN for each driver, fuel cards also help prevent fraud. This can be a significant problem for trucking companies, with scammers targeting professional drivers who carry stacks of cash or credit cards at the pump.
Fuel cards feature enhanced authentication and security measures to protect against unauthorized transactions and allow fleet managers to review spending details for each driver, increasing accountability and reducing internal theft.
Fuel costs are the most considerable unavoidable cost in the trucking industry, so finding ways to save is essential. By encouraging your drivers to use in-network fuel stations, leveraging discounts, and regularly reviewing spending reports, you can significantly improve profit margins and reduce other operating costs. Combined with advanced tracking and management systems, fuel cards can drive significant savings for your fleet and provide a competitive edge in the market.
