Choosing the best prepaid fuel card for you

One of the more outdated ways of managing fuel payments was to have employees pay for fuel themselves, keep the receipt, and be reimbursed later. This method created a whole host of issues, from delayed or forgotten reimbursements, which led to employees being out of pocket, to administrative logjams when it came to sifting through piles of receipts.

The inefficiency of this system has influenced the increased popularity of fuel cards. If you’re not familiar with them, a prepaid fuel card is a type of prepaid payment card designed specifically for refuelling. Unlike other payment methods, fuel cards are usually restricted solely to fuel, which increases spend visibility. Some providers do allow some non-fuel purchases related to travel, but this will depend on the particular package and company. Fuel cards eliminate many of the problems of a cash-based system.

• A driver will pay for fuel using their prepaid fuel card; this may require a PIN and potentially a unit number as additional verification.
• Your business then receives HMRC-compliant invoices showing purchases for a particular period, which can be useful for mileage claims.

This means there’s no need to carry receipts around, and you don’t waste any time manually calculating VAT. Of course, the fact that they’re prepaid means you already know how much is allocated to each card. On top of this increased efficiency, one of the biggest attractions of fuel cards is that a majority of them offer lower fuel prices than the advertised pump price. It’ll probably only be a few pence per litre, but this certainly builds over the course of a financial year.

There’s a vast array of fuel card suppliers out there, and as the payment method has gained popularity, this number has only increased. Some are large recognised brands, whereas others are more specialised companies.

The smaller fuel cards are eligible for around 3,500 fuel sites, whereas others can be used at as many as 7,800. On top of this, the stations supported by some providers are quite regional, whereas others are centred on big cities. If you decide to go for a fuel card, that decision should factor in the specifics of what your drivers will be doing.

There can be additional charges as well. Most packages have an annual card fee, although this shouldn’t be too costly, as it averages at around £20. Some cards come with transaction fees, too, so that’s another expense to look for. And keep an eye out for minimum monthly spends that come with some cards, because if your drivers aren’t reaching this threshold of fuel consumption, you’ll want to consider a different provider.

Clearly, there’s a lot to consider if you’re wanting to start using a prepaid fuel card.

One of the fuel card’s biggest benefits is that it is so fuel-specific. It’s a single category card, so there’ll be no mystery transactions. However, this is also one of its biggest drawbacks.

As you will know, employees who have to travel don’t just spend money on fuel. There will be other travel expenses, including food and drink, overnight accommodation, and maybe even the cost of entertaining a client. You can’t use a fuel card for these expenses, so either the employee has to carry a second company card, wads of cash, or fund these things themselves with the promise of an eventual reimbursement. Of course, none of these options are particularly effective or secure.

Read more: Business expense cards.

This is where prepaid cards come in. With a prepaid card, you don’t have to worry about these issues. You simply load a card with however much you deem necessary, and the employee can spend this money on whatever they like, not just at fuel stations. The only limits are the ones established by you.

Soldo’s smart prepaid system offers a complete spending solution. Not only do our prepaid cards offer greater flexibility to you and your employees, they can completely revolutionise how you manage your finances. At all stages of the expense process, Soldo makes life easier.

Once you’ve set up your cards, they can be linked with the Soldo mobile app or desktop console. This means that you can turn cards on and off in a click, transfer more funds if needed, and crucially, see every payment as it happens.

When an employee pays for something, all they need to do is snap a photo of the receipt, add any notes they deem necessary, and Soldo does the rest. All your spend data is collated in one place and, because the cards are prepaid, there won’t be any surprising charges or overpayments.

And when it comes to the end of the month, our seamless accounting integrations mean that all of this expense information can be sent to accounting software tools like Xero or QuickBooks in just a few clicks.

Our application process takes no time at all, and you can be up and running the very next day. Order as many additional cards as you need. Assign them to individuals, teams, or even vehicles, to manage your business the way you want to.

Soldo’s prepaid cards are the perfect choice for employees who need to travel. Unlike cash and company credit cards, there’s no need to worry about keeping hold of receipts, and because you’re in control, there’s no possibility of overspending. Unlike fuel cards, Soldo prepaid cards come with no limitations, and can be used anywhere, for whatever you deem appropriate. Supercharge your business by joining Soldo today.