For small businesses, managing fuel costs effectively can make a noticeable difference to the bottom line. A fuel card can help businesses control fuel spending, simplify administration, and make it easier to track what drivers purchase.
However, the cost of a fuel card isn't always as simple as the price you see at the pump. Depending on the provider and card you choose, there may be card fees, invoice fees, transaction charges or other costs to consider.
So, how much does a fuel card cost for a small business? The answer depends on the fuel card, the number of vehicles you operate and how much fuel your business uses. Understanding the various costs involved can help you choose a fuel card that delivers real value for your business.
How much does a fuel card cost for a small business?
There isn't one standard cost for a fuel card. Providers can use different pricing structures, so it's important to look at the overall cost rather than focusing solely on the fuel price or discount.
When comparing a fuel card, consider:
Card fees.
Invoice or account fees.
Transaction charges.
Fuel prices or discounts.
Payment terms.
Additional services.
The network of stations available to your drivers.
For example, Right Fuel Card offers a range of fuel cards tailored to different business needs. This means you can choose a solution based on your vehicles, fuel usage, preferred stations and where your drivers operate.
What fees do you pay for a fuel card?
Fuel card costs can vary depending on the provider and product. Some of the most common charges businesses should look out for include card fees, invoice fees and charges associated with payment or account administration.
Fuel card fees - Some fuel cards charge a fee for each card issued. This is particularly important for businesses with several vehicles, as even a small monthly fee can add up across a fleet. To calculate the cost of fuel cards, multiply the fee by the number of cards your business needs to find the total cost.
Monthly invoice fees - Businesses should also check whether their fuel card provider charges an invoice or account management fee. Understanding how your invoice fee is calculated is important, particularly if your business has a high monthly fuel spend.
Direct Debit and payment charges - Payment terms are another cost to consider. If a Direct Debit payment is unsuccessful, an administration fee may apply. Making sure your payment details are correct and that sufficient funds are available can help avoid unnecessary charges.
Are there hidden costs with fuel cards?
The term "hidden costs" can make fuel cards sound more complicated than they are.
In reality, the important thing is to understand the full pricing structure before applying.
Potential costs to check include:
Card fees.
Invoice fees.
Failed payment administration fees.
Replacement card fees.
Additional protection or services.
The difference between the fuel card price and the price you could otherwise pay.
Not every cost applies to every fuel card, so businesses should check the terms of the specific card they are considering.
How much can a fuel card save a small business?
The potential savings from a fuel card depend on how much fuel your business uses, where your drivers refuel, and the card's pricing structure.
For example, a business spending £2,000 a month on fuel will have significantly more opportunity to save than a business spending £200.
However, the savings aren't necessarily just about getting a discount per litre.
A fuel card can also help businesses:
Control where and how drivers spend.
Reduce the need for individual fuel receipts.
Simplify VAT and invoice administration.
Monitor fuel expenditure.
Make fuel spending easier to reconcile.
Give businesses greater visibility into fleet costs.
This means the overall value of a fuel card should be considered alongside its direct fuel savings.
What should small businesses look for when comparing fuel cards?
If you're comparing fuel cards for a small business, don't simply choose the card advertising the biggest discount.
Instead, consider the following.
1. Fuel pricing
Look at how the card is priced and whether the advertised savings apply to the stations your drivers actually use. Some cards use fixed pricing, while others may offer discounts off pump prices or use other pricing structures. The right option depends on your business's driving patterns and fuel requirements.
2. Network coverage
A fuel card is only useful if your drivers can use it where they need to. Consider the areas your vehicles operate in and check whether the card provides access to suitable fuel stations.
Right Fuel Card provides access to 98% of UK fuel stations on its network, helping businesses find suitable locations nationwide.
3. Card fees
A low fuel price can look attractive, but remember to factor in card and account fees. For a small fleet, calculate the total annual cost rather than looking at the price of one card in isolation.
4. Administration
One of the biggest benefits of a fuel card can be reducing the administrative work associated with business fuel spending. Instead of collecting individual receipts from drivers, fuel card transactions can be brought together on an invoice, helping make accounting and VAT administration simpler.
5. Spending controls
Fuel cards can also help businesses manage employee and driver spending. Depending on the card, businesses may be able to restrict how cards are used, helping reduce unnecessary or unauthorised purchases.
How to calculate the true cost of a fuel card
Before applying, work out how much your business is likely to spend over a year.
Start with:
Annual fuel spend + card fees + invoice/account fees + additional charges = total annual cost
You can then compare this with the amount you expect to save through your fuel card.
For example, if your business operates five vehicles, calculate the total card fees across all five cards rather than the cost of a single card. It's also worth considering the administrative savings. If a fuel card reduces the time your team spends collecting receipts, processing expenses, and reconciling fuel purchases, that has value for your business too.
Are fuel cards worth it for small businesses?
For many small businesses, a fuel card can provide value beyond simply reducing the price paid for fuel. The biggest benefits can include easier expense management, better control over driver spending and simpler invoicing.
However, whether a fuel card is worthwhile depends on your circumstances.
Consider how much fuel you purchase, how many vehicles you operate, where your drivers travel and which stations they need to access. A fuel card with a low headline price isn't necessarily the cheapest option if it doesn't work with your routes or has fees that outweigh the savings.
How to choose the right fuel card for your business
Before choosing a fuel card, ask yourself:
How much fuel does my business use?
Understanding your monthly fuel spend will help you compare pricing and fees.
Where do my drivers refuel?
Make sure your chosen card provides suitable network coverage.
How many vehicles do I have?
Remember to factor card fees across your entire fleet.
Do I need additional services?
Consider whether options such as fraud protection or legal protection would provide value for your business.
How much administration could I save?
Look beyond the fuel price and consider the value of consolidated invoices and easier expense management.
Find the right fuel card for your small business
Fuel card costs aren't simply about the price per litre. Card fees, invoice charges, additional services, network coverage and administration can all affect the overall value of a fuel card.
Right Fuel Card offers a range of fuel card solutions for UK businesses, making it easier to find an option that fits your fleet and fuel requirements.
Whether you operate one vehicle or a growing fleet, comparing the total cost of a fuel card can help you understand whether it will genuinely save your business money.
Ready to find the right fuel card for your business?
Compare Right Fuel Card options and find a solution that suits your vehicles, routes and fuel requirements.
