Financial literacy is one of those forms of education that offers you room to make mistakes. Its absence can be just as devastating. No one is ignorant of the extreme significance of wealth in life. All our desires and necessities are directly or indirectly associated with it. Control over our finances is a requirement in today’s era. There are many ways one can look after their spending habits. The most common practice to monitor your expenses is to use digital expense cards like credit cards, shopping cards, debit cards, fleet cards, etc. Fleet cards have been ordinary in the United States since the 1980s. So what is a fleet card?
Fleet Cards – A Brief
A fleet card is relatively an expense payment card that lets companies manage the expenses associated with the vehicles they own and operate. They are also known as fuel cards. They usually help in payment for purchasing gasoline, diesel, and other fuels at gas stations. These act just like expense cards or charge cards. Major oil companies or specialized credit companies provide them. Businesses give their personnel- namely transportation
employees- fleet cards for fuel, vehicle repairs, and maintenance.
Popular Fleet Cards
Business houses in the USA give fleet cards to their drivers and other staffs who can use them instead of their private cards. The most commonly used fleet cards in the USA are WEX fleet cards, Shell, Fuelman, Comdata, etc. But how do these fleet cards work? The answer to this question is fleet cards or fuel cards work very similar to credit cards issued by banks but with few differences.
It is a type of prerequisite given by companies to employees who use corporate vehicles. Most such companies are functional in the transportation industry as truck companies or cab companies that deliver or ridesharing services. Most fleet cards are feasible at specific locations owned, operated, and franchised by the issuing companies or affiliated with the issuer. Fleet cards hold a specified card number, expiry date, company’s name, and name of the authorized user. The new fleet cards evolved with time. Now, they come with a microchip on the front side and a magnetic stripe on the back. It makes the card traceable at gas stations for direct payment. These cards give easy accessibility as with the use of these cards, and the expense can be billed directly in the name of the issuer company rather than employees using them. Such employees ultimately are accountable to report about their spending dealt with the cards to the company.
Benefits of fleet cards
After understanding the working of fleet cards, one significantly knows the benefits of using fleet cards as discussed below:
- Fleet cards allow businesses to administer and budget vehicle-related expenses without much difficulty. They directly can track the reports and actual expenditure by the employees along with a record for future reference.
- Fleet cards provide a broad review of expenses made so far and how and where to put a limit bar to avoid additional costs to the company.
- Fleet cards provide a basis for annual budgeting for the future. Since each fleet card shows details of expenses done by a single employee on his route and through that data, the management can lay down general estimates.
- Fleet cards offer interest-free expending services, unlike credit cards, making them preferable over other expense cards. Sometimes even special discounts are available to specify fleet card owners in the wake of issuing company promotional programs.
Thus, fleet cards provide a convenient and better overall experience to its holder. US fleet fueling card solutions are an inspiration to many developing countries to implement such facilities. These fleet card solutions help forget the manual spend tracking and track by simply using one card for everything you spend on your vehicle. Cash is dead for upcoming days, thus resorting to easy cashless payments is the need of the hour.