When fleet managers think about fleet fuel cards, they often focus on the savings and efficiency promised at the forefront. After all, the ability to streamline fuel purchases and track expenses sounds like a win-win, right? But beneath the surface, there can be hidden costs, quietly chipping away at your fleet’s budget. Knowing these hidden expenses can be crucial to keeping your fleet running smoothly without unexpected financial surprises.

In this article, we’ll dig into the hidden fees that might be driving up your fleet’s fuel costs and explore how recognizing them can help you make more informed financial decisions for your operations.

Transaction Fees and Surcharges

It’s easy to overlook a small transaction fee here or a surcharge there, but over time, these little charges can snowball into a big problem. 

Many fuel card programs attach a per-transaction fee, which might not seem like a lot when you're just topping up one truck’s tank. But when you’re managing a fleet of 20, 50, or even 100 vehicles, those fees can pile up faster than you think.

Imagine you’re paying an extra 2% on each fill-up. Multiply that by the number of times your trucks refuel in a month, and suddenly, that “small” fee becomes a huge line item in your budget. To make matters worse, surcharges for specific fuel types or using certain stations can also kick in, especially if your drivers are limited to a handful of locations that honor the card.

At the end of the day, every transaction adds up—and if you're not careful, you could be losing money on per-transaction and fuel surcharge fees that seem insignificant individually but turn costly on a larger scale.

Annual and Monthly Fees

Some fleet fuel cards come with recurring charges that can quickly add up. Here are some key fees to watch for:

• Annual or Monthly Fees: These are charges just for keeping the account active. While they may not seem significant at first, they can accumulate over time and become a financial burden.
• Card Issuance Fees: You might be paying simply for having a card in your driver’s hand. For large fleets issuing cards to new drivers or replacements, these costs can escalate quickly.
• Account Maintenance Charges: These fees cover the administrative upkeep of the fuel card program and keeping the account “active.” Though they may seem justified for the convenience offered, they’re still an avoidable cost if overlooked.

By paying close attention to these recurring charges, you can ensure that your fleet remains financially efficient. You may also want to explore fuel card options that offer better value, such as those available through AtoB.

Inactivity and Minimum Usage Fees

In fleet management, there’s no such thing as a “one-size-fits-all” operation. Some fleets have seasonal peaks and valleys, while others might experience inconsistent usage. The problem arises when a fuel card program penalizes you for underusing the card—yes, it’s not just about using it but using it enough.

Fuel card providers often charge inactivity fees if the card isn’t used frequently, which can hit fleets that experience seasonal lulls particularly hard. Think about how this affects fleets that shrink or slow down in certain months. Not using the card shouldn’t mean you pay extra, but that’s exactly what happens.

Similarly, minimum usage fees kick in if your fleet doesn’t hit a required monthly spending threshold. This can be a shocker if your fleet size or fuel consumption fluctuates, leaving you on the hook for costs you didn’t see coming. These fees can act like a tax on fleet managers, especially during off-peak periods or when operations slow down.

Out-of-Network and Over-Limit Fees

It’s no secret that fleet managers need flexibility. But with fuel cards, flexibility can sometimes come at a cost—especially when it comes to out-of-network fees. These charges apply when drivers refuel at stations not included in the fuel card’s preferred network, and they can add up quickly.

Fleet drivers don’t always have the luxury of picking the “right” station, particularly during long-haul trips or in remote areas. OTR drivers often face this challenge, increasing costs when the right stations aren’t available. Out-of-network fees can throw a wrench into your carefully managed budget, especially if your drivers frequently end up refueling at these non-preferred locations.

Over-limit fees present another hidden cost. Many fuel cards come with spending limits, and exceeding these limits can lead to hefty penalties. When fuel prices spike or unexpected routes require more refueling than planned, going over that limit might seem like a necessity. But that extra cost can be a nasty surprise on the next statement.

Administrative and Miscellaneous Charges

Some fuel card programs charge administrative fees, from statement fees to account setup fees. These charges, while seemingly minor, represent the cost of doing business with a fuel card provider.

Here are some of the administrative and miscellaneous charges to watch out for:

• Statement Fees: Charges for generating monthly reports or providing detailed statements about your fuel card usage.
• Account Setup Fees: Initial costs for setting up your fuel card account and getting things started with the provider.
• Replacement Card Fees: When cards are lost or damaged, issuing new ones typically comes with a fee.
• Credit Check Charges: Fees that may be applied when you set up the account or increase your credit limit.

Interest Rates and Late Payment Penalties

Fuel cards may seem like a convenient way to manage fleet expenses, but carrying a balance can come with its own set of costs. Many fuel card providers charge interest rates on balances that are not paid off in full each month. This is where fleet managers need to be cautious. The cost of carrying a balance on your fuel card can skyrocket if you're not paying close attention to due dates and interest percentages.

Consider this: a fuel card with an interest rate of 20% can turn a manageable balance into a growing financial burden. As fleet managers know, cash flow isn't always predictable. Unforeseen circumstances, like sudden maintenance costs or route changes, can cause shortfalls in your payment schedule. That's where late payment penalties come into play.

Late payment penalties can be particularly punishing. Missing a payment deadline might not only result in extra charges but could also affect your credit score as a business. These penalties can range from flat fees to percentages of your total balance, making them more damaging the longer they go unpaid. It’s essential to understand the terms of your fuel card agreement to avoid these financial pitfalls and keep your budget on track.

The real danger here is that if interest rates and late fees aren’t closely monitored, they can spiral out of control, especially for fleet managers who deal with large volumes of transactions. A simple missed payment can snowball, creating an unexpected financial strain that undermines the cost-saving benefits fuel cards are supposed to offer.

Empowering Fleet Managers to Control Costs

Fuel cards have become a popular choice in fleet management for their convenience and ability to track expenses. They seem like a straightforward way to streamline operations and save money. But beneath the surface, hidden costs—like transaction fees, over-limit charges, and interest rates—can catch fleet managers off guard, leading to unexpected expenses that quickly add up.

So, do fuel cards save you money, or do they come with costs that undermine your savings? It depends on the card you choose. To avoid unexpected expenses, you need transparency and the right tools. That’s where AtoB comes in. By choosing our fuel cards, you can ensure your fleet enjoys the benefits without the unexpected financial burden.

Here’s how AtoB fleet fuel cards help you take control of fuel expenses:

1. Transparent Pricing: AtoB provides clear, upfront pricing, so there are no surprises when it comes to fees or charges.
2. Real-Time Tracking: Track fuel usage and expenses in real-time, giving you full visibility over your fleet’s fuel consumption and spending.
3. Cost Control Tools: With AtoB’s fuel card program, you can manage and control costs effectively, avoiding unnecessary fees and optimizing fuel usage.
4. Seamless Integration: AtoB’s system integrates easily with your fleet fuel management tools, helping you track expenses by truck class and ensure compliance.
5. Detailed Reporting: Access detailed reports that give you insights into spending patterns, helping you make smarter financial decisions.
6. Fuel Discounts: Benefit from a fuel discount card that offers savings on fuel purchases, driving down operational costs and improving your bottom line

Take control of your fuel expenses today, and don’t let hidden fees undermine your fleet’s financial health. By choosing a fuel card program that works for your unique needs, you can navigate the complexities of fleet management without worrying about unexpected costs.

Sources:

Forbes Advisor. Fleet Fuel Cards: The Ultimate Guide. https://www.forbes.com/advisor/credit-cards/forbes-advisor-guide-to-fleet-fuel-cards/

Investopedia. Fleet Cards: What They Are, How They Work, Examples. https://www.investopedia.com/terms/f/fleet-cards.asp

SmallBizClub. 10 Good Reasons Your Business Should Use a Fuel Card.https://smallbizclub.com/run-and-grow/operations/10-good-reasons-your-business-should-use-a-fuel-card/

‍