Managing a business fleet is challenging on its own, and the last thing you need is fuel card billing becoming a headache. Fleet fuel card billing works differently than traditional credit cards or even other vendor accounts. Without proper planning, shorter billing cycles, tighter payment terms, and potential late fees from some card providers can unexpectedly disrupt your operations. Understanding how fuel card billing works, along with the most common pitfalls, can help you safeguard your business and keep your attention where it belongs: on running your fleet.
Table of Contents
- How fleet fuel card billing works
- How fleet fuel card billing is different from other vendors
- Why your fuel card credit limit impacts billing frequency
- Things to consider when choosing your fuel card billing cycle
- Common fleet fuel card billing problems to avoid
How Fleet Fuel Card Billing Works
Fleet fuel card billing works similarly to other business vendors. You receive a bill that covers fuel transactions during the billing cycle, then you have a time frame in which the bill is due (payment terms), and you pay the bill with your fuel card company's accepted payment types. Let's cover this cycle in more detail to help you understand the common fuel card billing options.
Fuel Card Billing Cycle
The billing cycle is simply the period of time your fuel card statement covers, and it determines how often you’ll get billed. Common fuel card billing cycles include:
- Weekly: One bill each week for the prior week’s transactions.
- 10-Day: Three bills per month; covering the 1st-10th, 11th-20th, and 21st-end of month.
- Semi-Monthly: Two bills per month; one for the 1st-15th and one for the 16th-end of month.
- Monthly (less common): A single bill covering the entire month.
Fuel Card Payment Terms
Fuel card payment terms is the amount of time you have to pay the bill once you receive it. Here are some common fuel card payment term options:
- Due upon receipt
- Net 5
- Net 10
- Net 15
Fleet Fuel Card Payment Options
You’ve got a few different ways to pay your fleet fuel card balance, depending on your fuel card provider and what works best for your business. Here are some common payment methods:
- Automatic payment via EFT (electronic fund transfer)
- Online pay via checking account, ACH (automated clearing house)
- Mail in check
- Credit card (fees may apply)
How Fleet Fuel Card Billing Is Different from Other Vendors
The fuel card billing process works much like other business vendors, but there are two key differences that fleet managers and business owners should keep in mind.
Fuel Cards Have Shorter Billing Cycles
Fuel card billing cycles are usually shorter than what you’ll get with credit cards or other vendors. Weekly, 10-day, or semi-monthly statements are common because fuel card companies pay stations on tight timelines. Longer terms would drive up their cash flow costs and cut into already thin margins. The upside is shorter cycles help fleets stay within credit limits and make approvals easier since smaller credit lines are required.
You Can’t Carry a Balance with Fuel Cards
Credit cards let you carry a balance and pay interest over time, but fuel cards don’t work that way. They’re not money lending tools, they’re business tools built to help companies control and track fuel purchases. That means fuel card statements have to be paid in full each cycle.
Why Your Fuel Card Credit Limit Impacts Billing Frequency
When you apply for a fuel card, you’ll provide your estimated monthly fuel spend so the fuel card company can try to approve you for a credit line that matches your needs. Their credit team will review your business credit history and set your approved limit. That limit directly impacts your billing cycle options because the longer the billing period, the more credit you’ll need to cover your fuel purchases.
For example, if your fleet spends $50,000 a month on fuel, but you’re approved for $25,000, the fuel card company will likely recommend shorter billing cycles like weekly or 10-day billing. This keeps your account balance within the approved limit while still giving you enough room to cover your full monthly fuel expenses.
Things to Consider When Choosing Your Fuel Card Billing Cycle
Here are a few things to think about when choosing your fuel card billing cycle:
- Workload: Shorter billing cycles create more invoices, but each one is smaller and easier to review. Longer cycles reduce paperwork, but the larger statements can be harder to sort through.
- Risk tolerance: Shorter billing cycles reduce the chance of overspending and hitting your credit limit, while longer cycles give more flexibility, but increase the risk of running short on credit if spending spikes.
- Future growth: If your fleet is expanding, shorter billing cycles give you more room for growth within your credit limit as fuel expenses increase.
- Fuel prices: Your credit limit may be fixed, but fuel prices aren't. Short billing cycles help you stay under your credit limit when fuel prices spike.
- Cash flow: Shorter billing cycles keep invoices smaller and easier to manage, while longer cycles free up cash flow but leave you with bigger bills to cover at once.
Common Fleet Fuel Card Billing Problems to Avoid
Before applying for a fuel card, make sure you read fuel card reviews from third party review sites to see if customers experience any billing issues. Here are some billing problems to look for:
1. Late or Inconsistent Billing
With short billing cycles and tight payment windows, getting your fuel card bill on time is critical. Some providers send invoices late, but don’t move the due date, leaving you with less time to review charges and make payment before it’s due.
2. Delayed Payment Posting
If you pay fuel card invoices by check or ACH , there’s often a delay while the bank processes the payment. In the meantime, some providers may tack on late fees or you could run into your credit limit which will lock your fuel cards. The easiest way to avoid these headaches is to set up autopay so your bill is covered on time, every time.
3. Difficult to Pay Bills
Some fuel card companies make it harder than it should be to pay your bill. Their online portals can be clunky, confusing, or outdated, and setting up autopay isn’t always straightforward. A poor payment system doesn’t just waste your time, it can also increase the risk of missed or late payments, leading to unnecessary late fees and account headaches.
When evaluating fuel cards, make sure the provider offers a simple, reliable way to pay, whether that’s autopay or online payments so billing never slows you down.
4. Excessive Late Payment Fees
Some fuel card companies hit you with steep late fees the moment your bill is overdue. These fees often range from 7%-13.99% of the past due balance, meaning a $5,000 bill could cost you an extra $350-$699. Just one late payment can wipe out months worth of fuel card savings.
5. Unclear Invoices
Some fuel card invoices are messy and hard to read, making them frustrating to review. You might struggle to match totals with your statement history, or find that pricing isn’t clearly laid out and hidden fees slip through the cracks.
6. Hard to Check Fuel Card Account Balance
You might receive your invoices, but figuring out what’s been paid and what’s still outstanding isn’t always clear. As invoices pile up, it gets harder to track your unpaid fuel card balance, and before long, you’re left guessing what you actually owe.
Simple, Transparent Billing and No Late Fees with P-Fleet Fuel Cards
P-Fleet makes fuel card billing simple and straightforward so you’re never left second-guessing your statements. Here’s what you can expect with both the P-Fleet Voyager and CFN fuel cards:
- Clear, transparent invoices: Every transaction is tied to the driver and vehicle, with pricing displayed upfront and no hidden fees. You can view and download invoices anytime online.
- No late payment fees: Life happens, maybe you’re on vacation, waiting on a customer payment, or a bill slips through the cracks. Unlike other providers, P-Fleet doesn’t penalize you with late fees.
- Easy payment setup: Your dedicated account rep walks you through payment setup from day one so you’re ready when your first bill arrives.
- Online account visibility: The customer portal shows all your invoices, fuel card account balances, and payment status in one place, making it easy to match invoices with your records.
