Fuel cards and business expense cards

The key advantage of an expense card, especially when compared to more traditional business credit cards for employee use, is that it gives the company more control over spending while still allowing employees to cover their work expenses. There’s no risk of misuse as the employee can only spend what’s been loaded onto the card, and because of their convenience, all employees can have their own card and their own individual accounts/spending limits.

This makes it easy to keep track of who’s spending what, but it also makes it simpler for the employee, with no need to request approval for each expense (though receipts will typically still need to be provided to accounts teams). It’s particularly beneficial for those who would otherwise not have access to a company card at all, and would instead use their own money and wait for reimbursement. It can dramatically cut down admin time for all involved, with a lot less paperwork floating around.

A fuel card works in a similar way to a business expense card, in that employees can use the card to pay for fuel used for business purposes, with it being solely restricted to this use. However, these cards generally aren’t prepaid; instead, the company is invoiced for the fuel charged. Associated costs can be added to permitted usage, too, such as tolls and tyre repair.

Fuel cards can be used by businesses of all sizes, from the self-employed to large corporations, with a key benefit being reduced admin time. Rather than each employee having to fill out expense forms, all fuel spends will be collated and invoiced – and crucially, fuel card invoices are approved by HMRC, further adding to the benefits.

These cards can help cut costs, too, particularly if you restrict their use to certain oil brands or supermarket sites according to your wishes, while some can be used at discount fuel sites as well. Even in the wider network, a lot of fuel card providers are able to offer discounts on standard fuel prices. Plus, because you can see what each employee is spending, it’s easy to keep track of fuel costs to see where potential savings can be made, while also reducing the potential for fuel fraud.

Alternatives to fuel or expense cards will typically be business credit or debit cards, which can still be used for applicable expenses, but without the same level of control or convenience. That said, they can be useful in certain situations, perhaps where employees may need to make more expensive purchases or have highly variable expense requirements. 

The potential downside to fuel cards is that their use can sometimes be restricted to certain networks, while most providers charge some form of fee and there may be a minimum spend requirement on the account, too. Similarly, expense cards can charge high fees, while it could prove difficult for employees if they hit the limit but still have expenses to cover.

Yet one of the best ways to counteract some of these downsides is to choose your fuel and expense card provider wisely, making sure to compare the options by looking closely at their features, functionality and cost, leaving with you the perfect cards that can benefit both your employees and your business. Start the process by looking at our chart.