The business fuel card for travelling employees

From Christel Heije on 20 April 2021

Doing business around the world involves business expenses. The complexity of these expense streams increases exponentially as employees become more mobile. Many business owners and finance managers wonder which type of business fuel card is best for them.
The Netherlands has traditionally been a trading economy. Sectors such as logistics, transport and ‘supply chain’ have therefore always played an important role in our economy. With this in mind, various expense solutions have been created to meet the needs of these mobile employees.
In this article, we will discuss the different types of business fuel cards and how they work. As the name suggests, the main purpose of these cards is to pay for fuel. With business fuel cards, employees easily and securely pay for fuel when they are on the road. The cards also provide a solution for settling any other travel expenses.
❯ What is a fuel card?
❯ How does a business fuel card work?
❯ Types of business fuel cards
❯ A universal fuel card for travel expenses
❯ Using SimpledCard cards travel expenses

What is a fuel card?

A fuel card is a means of payment offered by employers to employees. It allows employees to pay for fuel during business trips.
This allows the employer to control expenditure on fuel. And the employee does not have to pay for it himself.
Some business fuel cards can also be used to pay for other expenses. These could be expenses for maintenance, repairs, parking or more general items, for example.

How does a business fuel card work?

The main purpose of business fuel cards is to allow mobile employees to pay fuel costs on the go. There are different types of fuel cards that facilitate this.
The variety of business fuel card providers makes it difficult to give a general explanation of how all these passes work. Nevertheless, there are some features they all have in common.
The first question we can ask is: what all can the business fuel card be used for? In short, most business fuel cards can only be used for fuel, the car wash, parking and/or other small merchandise.
Business passes are usually only used at petrol stations. This can cause problems when an employee has to pay for other expenses. For example, for tools or equipment that cannot be bought at a petrol station.
A universal pass for travel expenses offers a more comprehensive solution. This type of card is used as a general means of payment.
Another important question is what business fuel cards are used for. As mentioned, the use of these cards is usually limited to petrol stations. Often, the cards can also only be used in the country where they are issued. This makes these business fuel cards a less favourable option for companies operating in multiple countries.

Types of business fuel cards

There are several fuel cards on the market. Each with its own advantages and disadvantages. Let's take a closer look at how organisations use the different types of business fuel cards.
❯  Brand-specific fuel cards

Brand-specific cards are issued by a particular fuel brand (e.g. Total, Shell, etc.). These cards allow you to fill up and pay for expenses, such as a car wash or engine oil.
As expected, these cards can only be used at petrol stations of the company that issued the pass.
You benefit from the discounts offered by the specific fuel brand. The downside, however, is that you are “tied” to the services of that brand's filling station.
❯  Third-party fuel passes

Third-party business fuel cards allow employees to fill up at multiple filling stations. Normally, these include different ‘brand’ petrol stations, but also independent petrol stations. So in terms of geographical coverage, these types of cards have a big advantage.
However, the disadvantage of these passes is the lack of discounts. However, they do allow users to choose the filling station with the best price themselves.
Benefits of brand-specific fuel cards and third-party fuel cards:
❯ Refuelling anywhere in the Netherlands
❯ VAT easily recoverable
❯ Employees do not have to advance money
❯ Employees need not carry cash with them
❯ Discounts at certain petrol stations (brand-specific fuel cards)

 

A universal pass for travel expenses

The main disadvantage of many fuel cards is their limited use. They do not allow spending outside petrol stations and do not provide coverage for emergencies. However, a general travel card is well suited for precisely this purpose.
This type of business fuel card works like a normal debit card. You can use it to fill up and pay at any petrol station. This gives you the freedom to always choose the best fuel price.
Apart from refuelling, employees can also use these cards for other types of business expenses. With a universal travel expense card, you make paying more secure for all your employees. After all, they no longer need to carry cash with them. This is convenient for jet staff and makes your organisation more flexible.
So can everyone just spend whatever they want? No, definitely not. Instead, these cards give the finance team tight control over the types of spending per card.
The universal business fuel card is prepaid. This means that only the money allocated to each card can be used. When needed, additional money can be added to the card within seconds.
In addition, the team can determine the settings of each card. For example, whether cash withdrawals are allowed and what types of charges the card can be used for. This gives staff clear guidelines on whether or not the card can be used for lunches, equipment hire, etc.
Employees save time because they no longer have to collect receipts. And, no longer have to account for expenses manually. This leaves them more time for their actual work.
Using a universal fuel card has several advantages for your organisation. Firstly, you can use your own Maestro and Mastercard issue cards and assign them directly to your employees.
Budgeting becomes much clearer, as you can set limits by location and function. You have instant insight into all expenses incurred with the cards. And, most importantly, you have better control over the declaration process.
When employees pay with their cards, they can very easily upload a picture of the purchase receipt to the transaction. This saves them a lot of hassle of saving receipts.
For the finance team, this means that declarations can be checked and processed in just a few steps. And accounting is therefore fully transparent and under control.
Finally, these universal cards offer direct integration with the accounting system. With a single click, all claim data is transferred.
Benefits of universal travel charge cards:
❯ Pay tasks and travel expenses anywhere in the world
❯ VAT easily recoverable
❯ Track all expenses and purchase receipts in one system
❯ Per card charging, blocking, budgeting and customisation of authorisation for different types of expenditure
❯ Integration with the accounting system

Using SimpledCard cards travel expenses

SimpledCard has been a provider of prepaid Maestro and Mastercard cards for business spending since 2014. The cards have now been implemented in a variety of industries. Such as transport, logistics and the maritime sector. The cards meet organisations' needs for general travel expenses.
With SimpledCard, you give bank-independent prepaid cards out in your organisation. This allows your employees to pay anywhere in the world on location and online. You define cost types and assign them to a group of cards. This way, employees pay for fuel, repairs and/or other necessary business expenses.
Through a centralised Card Management System keur you track all expenses and claims properly. Employees use the mobile app to take a picture of the receipt and link it to the correct transaction.
As finance manager, you control all spending and its approval. You set spending rules, such as automatic charging for certain cards. Or you can assign this task to a cash manager in your team.
Finally, you upload the data of all expenses easily and directly to the accounting system. SimpledCard offers software integrations with the most common accounting programmes.
Want to know more about the business fuel card? Or see how to implement a universal card into your organisation's workflow? Then take contact our team from experts.

From Christel Heije