A definitive guide on petrol (fuel) card- All you need to know!
Imagine yourself in a petrol filling station with your vehicle. Upon refilling your tank, the mode of payment that you will pick will be either cash or card. Your best option will be using a Petrol Card. For a Petrol Card is not only a hassle-free, cashless way of paying for fuel but also serves to be advantageous over other non-cash modes of payment like Debit or Credit cards. A petrol card has exclusively been made to help you provide significant relief, especially in the long run, on the expenditure made on petrol. Along with the benefits including the fuel surcharge waiver, the petrol card is also helpful in keeping an organized account of your expenses specifically made on your fuel purchase.
Fuel cards: many benefits wrapped in one card. Source: paisabazaar.com
How Petrol Card functions
The outcome of various petroleum enterprises partnering with respective banks has resulted in the initiative of petrol cards, such as a fuel card for business use. The bank in which you hold your account is very likely to provide you the service of petrol cards with their corresponding oil-company partners. To explain it better, let’s suppose you have a bank account in ‘X’ bank and this bank is linked with a ‘Y’ oil-corporation. Now, the X bank will furnish you with a petrol card of ‘Y’ petroleum company which will enable you to go to any filling station outlet of ‘Y’ and enjoy the benefits of fuel purchase using the petrol card. The bank may or may not charge a nominal fee for the service provided for the card. Depending on the interest rates of the given bank, you will be required to pay an interest charge in case you miss out on your monthly dues accumulated against your petrol card.
The Necessity of a Petrol Card
If you own a vehicle it must have crossed your mind to find ways to cut down your expenses on petrol as much as possible. The petrol card is, perhaps, the most effective answer to your query. Every time you refill your tank you have to pay an additional sum in the total bill which is called fuel surcharge. However, with the usage of petrol cards, the fuel surcharge is waived off. Thus, there and then only you avail a discount on your fuel purchase which the non-petrol-card holders cannot access.
But it does not stop here. Petrol Cards are also effective in numerous other ways. With each purchase of fuel, you earn reward points which can be redeemed against your next fuel purchase or can provide you timely offers from different lifestyle and merchandising brands. Be it shopping from reputed brands or dinner at a fancy restaurant, this card is an excellent bargain to assist you in maintaining various desires by keeping your expenses in a moderate check. Cashback offers are also quite a commonplace feature of this card.
Process of applying for a Petrol Card
Applying for a Petrol Card is not at all complicated. The process is almost identical to the issuance of any other card from the bank. Go to your bank branch or, if available, apply online for the Petrol Card. The bank will provide you with the information on which petroleum corporations it has tied-up with. Then you will be given an application form to be filled. You will most likely get your card within twenty days to a month, if not earlier. One thing that should be noted is that in some countries, fuel cards are not issued by banks but rather fuel card companies. For example, in the UK, you would approach a company selling a fuel card for business and they will issue the fuel card directly. It is always wise to do some research before applying for a fuel card.
The only thing to keep in mind during the application process is your credit score. A credit score often plays an important role in deciding your eligibility for the Petrol Card. Keep your credit score maintained and the rest is already arranged. It goes without saying that if you never had a credit card prior to issuing the Petrol Card then it wouldn’t be a trouble at all.
Choosing the best option
Even if you have made up your mind to get a petrol card, it still might take a considerable time before you apply for one. This is due to the fact that there are numerous banks providing Petrol Cards with varying interest rates and offers and to choose one among them may be a tedious task. To help you assist in the process we have laid out certain measures that may help you in opting for the petrol which suits your needs the best.
The filling station: Try opting for a Petrol Card which allows you to access the nearest or most frequent filling stations in the routes you generally take.
Payment schedule: If your Petrol Card operates on a monthly basis then you will be required to pay off your petrol dues within that period in order to avoid interest charges.
Equating the benefits: Many Petrol Cards provide greater benefits in terms of reward points but at the same time may charge a higher interest rate or a nominal fee. Therefore, it is recommended to seek the card with a lower interest rate if depending on rewards points is secondary to you.
Redeeming reward points: It is better to go with the card which initiates instant or quicker redeeming points so that you can use it in the very next transaction.
Given how important transport is in our lives and how petrol prices are soaring, Petrol Cards are nothing short of a smart investment. If you own a vehicle add getting Petrol Card at the top of your to-do list.