Prepaid Fuel Cards

Employee Fuel Cards

Employees that use company vehicles will need to refuel them as needed. It is inconvenient for employees to keep track of how much fuel they use, save receipts and then fill out paperwork to be reimbursed for these costs. A more convenient and inexpensive way to have employees pay for fuel is to issue them prepaid fuel cards. These types of cards provide the convenience of a credit card without the associated costs such as per transaction fees, monthly fees or finance charges.

Purchasing fuel cards for employees can be as easy as calling the preferred gas company to buy them, purchasing them in a preferred gas station or buying them online. There is no charge for these cards. The only cost is the exact monetary amount with which you load the cards.

Prepaid Fuel Cards for Students

If you are sending your child away to college, one way to help them meet expenses is to give him or her a fuel card. Most fuel cards can be used to refuel cars, to wash cars and to buy items, such as food, in the gas station’s store. These fuel cards are convenient and they help students manage their budget. In addition, if a student is using a prepaid card for these types of expenses, they are less likely to apply for a gas credit card. Fuel cards are also handy for teens; parents can give them as gifts or keep them on hand for when someone has a date and needs gas for the car.

For parents, using a prepaid fuel card ensures that the money is being spent on purchasing items for which it was intended. This means that you can be sure there will be fuel in your car when your child returns it instead of being spent on clothes at the mall.

Purchasing Fuel Cards Online

Most major fuel companies are happy to offer prepaid cards to their customers. They can be used just like any other debit or credit card at the pump. The following companies sell fuel cards online:

• SVM Cards – offers a variety of gas station gift cards including ARCO, Chevron, BP, Exxon, Gulf, Marathon, Shell and Texaco.
• Speedway – sells its own prepaid gas cards online in $5 increments. These cards are good at all Speedway and SuperAmerica gas stations.
• ARCO – sells prepaid cards online or they may be ordered over the phone. Cards come in $25, $50 and $100 amounts.

Problems with Prepaid Cards

Buying prepaid cards is a great idea, but it is not without a few problems. Prepaid cards are a convenience and they may not come with the same protections that a traditional credit card offers. If you lose a credit card, a call to the credit card company will ensure that unauthorized charges won't be posted to your account.

On the other hand, before you purchase a prepaid fuel card be sure to ask what will happen if the card is lost or stolen. Unless the company has a way to track the card that you've purchased, you will forfeit any funds left on the card.

Conclusion

Prepaid fuel cards provide the convenience of cash and the assurance that the funds will be used on what it was intended for. They are great as gifts to teens or college students and they can be passed to other family members when needed. They differ from traditional credit cards in that there are no finance charges, annual fees or costs for the card itself. They can be purchased in varying amounts, usually in increments of $5 or $10 at the gas station or online. The main drawback of these cards is that they usually cannot be replaced if lost or stolen and the remaining money on the card will be forfeited.