For private vehicle owners, fuel is a necessity, and an expensive one because the prices are constantly increasing. Additionally, a fuel surcharge on credit card can impact your monthly expenses more than you can imagine. That is when a surcharge waiver on your credit card can ease your financial burden.
To manage your finances more effectively, it’s essential to understand various aspects of credit card charges, including the fuel surcharge on credit card. Knowing what it is, its working and how to avoid it can help you cut your expenses drastically.
Understanding Fuel Surcharge on Credit Cards
Fuel surcharge waiver is a great benefit, but to understand the process comprehensively, first, you will have to learn what fuel surcharge is. A fuel surcharge is an additional charge imposed by credit card companies. In most cases, the imposed charge is 2.5% of the purchase amount. You have to pay this charge if you use your credit card to buy fuel.
You can have this charge removed if your card offers a fuel surcharge waiver. To waive the surcharge, you first have to apply for a credit card (such as a fuel credit card or rewards card) and start using it to purchase petrol or diesel. Based on which credit card you have, you will get a surcharge waiver of 1% to 2.5%. This way, you won’t end up paying anything extra for your fuel purchases.
How How Fuel Credit Cards Can Help
To begin with, you will have to select a fuel credit card that offers benefits like fuel surcharge waivers, cashback, or accelerated points on fuel purchases. These cards are often issued by banks in collaboration with petrol companies.
Not all petrol pumps accept fuel credit cards with surcharge waivers or similar benefits. Check which petrol stations along your daily route or preferred areas have this option. In most cases, credit card issuers impose a minimum and a maximum waiver limit; understand that and use it accordingly. This is how you can avoid fuel surcharges on credit cards.
Benefits of Using a Fuel Credit Card
With this type of credit card, you can easily avoid the surcharge imposed on credit cards usage at petrol pumps. Moreover, you can also get some additional benefits. This is how your overall surcharge benefits may look like:
- 1% to 2.5% waived off fuel surcharge up to a certain amount per month
- Additional reward points on fuel purchase
- Cashback which you can use the way you want
- Perks like free fuel on joining
Ways to Avoid Fuel Surcharge
Wondering how you can maximise the fuel surcharge waiver option when you are using a credit card? Get some tips below:
Step 1: Research Fuel Credit Cards
Based on how much you spend on fuel each month you should figure out which credit card is best for you. While picking your card, concentrate on the following aspects:
- Fuel surcharge waiver percentage
- Joining and annual fees of the credit card
- Additional offers your credit card provides
Step 2: Get Your Credit Card
Once you have found a credit card that best aligns with your purpose, follow these steps to receive your credit card:
- Understand the eligibility criteria and see whether you are a suitable candidate for it
- Get your documents ready if you fit the eligibility criteria
- Start the application process; fill the form, and submit the documents
Step 3: Activate Your Card and Start Using It
On approval of your credit card application, you will receive the card. All you need to do is activate it. Once you have activated your card, you can start using it. You can activate your card using the following options:
- Through internet banking
- Downloading the mobile app
- Through an ATM
- Visiting the bank branch
Step 4: Find out Gas Stations That Have This Offer
Not every fuel station will have a surcharge waiver facility for you. So, find out which petrol pumps accept this credit card and provide a waiver on fuel purchase. For that, check your credit card app to see which stations are partners.
Step 5: Understand the Minimum and Maximum Waiver Limit
The minimum and maximum fuel surcharge waiver depends on the credit card. Check the terms and conditions as there may be a minimum bill amount that may also be required.
Are you looking to get a credit card that has no joining or annual fees and yet offers good deals on fuel purchases? In that case, you can opt for the One Credit Card. With this credit card, you get a 1% fuel surcharge waiver along with other deals on fuel purchases. Moreover, you can get 5X reward points on your top two spending categories every month including fuel. To get all these perks and more, apply now using the OneCard App!
