Understanding How Fuel Reward Cards Work

What is a fuel reward card?
A fuel reward card, also called a gas or fleet card, is a payment method used to purchase fuel at service stations. These cards are issued by major oil companies like Shell or ExxonMobil and by specialized financial service providers such as Edenred, Fleetcor, Fuelman, and Fleetcard. Fleet managers can also utilize these cards to cover vehicle maintenance and other related costs.

History of fuel reward cards
Fuel reward cards debuted in the U.S. during the 1960s. Initially resembling credit cards with customer and company details, cashiers manually recorded transactions. Over time, technological advancements introduced magnetic stripes and card readers, streamlining and securing fuel purchases. Today, they enable precise expense tracking, transaction control, and comprehensive reporting.

Advantages of fuel reward cards
Depending on the provider, security features may vary, but typical benefits include cashless payments, chip-and-PIN protection, detailed itemized invoices, online controls to restrict or suspend transactions, limits to fuel-related purchases, fraud reporting options, and reduced skimming risks. These features enhance safety and manageability.

Though similar in appearance to credit cards, fuel reward cards differ in functionality. They often feature shorter payment terms, customizable transaction limits, and strict liability for fraudulent activity. Additionally, they utilize different payment terminals from standard credit or debit card systems.

How to obtain a fuel reward card
Fuel reward cards are accessible through various channels. You can acquire them at gas stations, order online, or buy from retail outlets dedicated to financial products.

Top fuel reward cards of recent years

Some standout options include:

American Express Blue Cash Preferred which offers generous rewards with 3% cash back at U.S. gas stations, 6% on groceries up to $6,000 annually, and 1% on other purchases. New cardholders receive a $150 bonus after spending $1,000 within three months. It features a 0% APR on purchases and balance transfers for the first year, plus entertainment benefits. The annual fee is $95.

Discover it Chrome providing 2% cash back on gas and dining up to $1,000 every four months, and 1% on all other transactions. It has no annual fee, includes free monthly FICO score updates, and offers a first-year double cashback promotion.

Chase Freedom offering 5% cashback on gas for spending up to $1,500 in the first quarter and 1% on other purchases. It has no annual fee, a $150 sign-up bonus, and purchase protection for up to 120 days. Balance transfers cost $5.