Fuel Cards for Employees: the Business Owner's Guide

If you have employees that use company or personal vehicles for business purposes and they initially pay for the fuel, then you know how big of a challenge reimbursements can be. You have to collect paper receipts, scrutinize expense reports, and reconcile any inconsistencies for record-keeping. It's more paperwork and more headaches that can drain administrative time and resources.

Fuel cards for employees are a game-changer for business owners, fleet managers, and accountants who are looking to simplify fuel purchasing and allow employees to fill up without the hassle of submitting receipts or expense reports. With the ability to set spending limits and track fuel consumption daily, fuel cards simplify accounting and promote accountability. Whether you run a small business or oversee a large fleet, fuel cards offer a convenient and secure way to fuel vehicles.

In this guide, we’ll break down how fuel cards for employees work, why they’re essential for businesses, and how to choose the right solution for your team. From usage policies to online tracking and card controls, you’ll learn everything you need to know to run a tighter, more efficient fuel program.

Table of Contents

• What is an employee fuel card? 
• How do fuel cards for employees work?
• The benefits of using fuel cards for employees
• What types of companies use fuel cards for employees?
• Who is responsible for the company fuel card program?
• How do company fuel cards work for employees​?
• Fuel card policy for employees 
• Prepaid company gas cards for employees 
• Best company gas cards for employees 
• How to choose the right fuel card for your employees
• How to get company gas cards for your employees

What is an Employee Fuel Card? 

Fuel cards are payment cards that enable employees to purchase fuel for business-related purposes without needing to pay out of pocket and request reimbursement.

For fleet managers and business owners, fuel cards provide the ability to track and control employees' fuel purchases at gas stations and truck stops. Fuel cards are generally restricted to only allow employees to purchase fuel, but in some cases, maintenance purchases can be enabled by management.

How Do Fuel Cards for Employees Work?

Fuel cards offer business owners and fleet managers a variety of features to help control their employees' fuel purchases and simplify fuel accounting processes. Here are some of the main features:

Fuel Card Controls 

Fuel cards can only be used to purchase fuel and give fleet managers the ability to set spending controls such as: 

• Number of transactions per day
• Gallons per transaction to match tank capacity
• Dollars per day, week, and month
• Time and day restrictions
• State restrictions
• Station type restrictions 

These controls can be customized by card, driver, or vehicle to allow your drivers to purchase exactly what they need and nothing more. 

Real-Time Purchase Alerts

If your employees primarily purchase diesel fuel for company vehicles, for example, you'd want to know when an unleaded purchase is made, right? With alerts, you'll be notified by email to resolve potential problems right away. You can get alerted on every employee purchase or flag certain exceptions.

Here are the fuel card alerts you can set up, either by card or for the account: 

• Real-time purchase alerts 
• Fraudulent activity alerts
• Product exceptions
• Transaction errors
• Fueling outside of business hours
• Fueling outside of designated states

Fuel Data and Reporting 

Fuel cards collect fuel transaction data such as date, time, location, vehicle description, driver name, fuel product, gallons, total dollars, odometer, job number, and department. This data is displayed online and can be downloaded into Excel for any time period you need to help you;

• Compare driver and vehicle spend
• Track vehicle efficiency
• Track department and company expenses
• File IFTA reports
• File fuel tax reports

How Much do Fuel Cards for Employees Cost?

Most fuel cards charge the retail pump price and may offer a small discount or rebate. Some fuel card companies also charge additional fees such as monthly card fees, account setup fees, and out-of-network fees. We'll compare fees and discounts for some of the best company gas cards for employees below.

There are also cardlock fuel cards like the CFN and Pacific Pride fuel cards that offer cost-plus pricing at cardlock fuel stations. Most cardlock fuel stations are located in the Western U.S., so companies in that region should consider these fuel cards as they often provide more savings than retail fuel cards.

To figure out how much fuel cards cost, identify the available discounts and the potential fees. If the total fees cancel out or even exceed the discounts, consider another fuel card program since you might end up paying more than the actual pump price.

The Benefits of Using Fuel Cards for Employees 

Here are some of the top reasons why businesses of all types and sizes use fuel cards for their fuel expenses.

Simplify Fuel Purchasing

Without a fuel card you will need to reimburse employees for fuel purchases or issue company credit cards to purchase fuel. For businesses where employees fuel company-owned vehicles, reimbursement plans usually don’t work. Depending on how much fuel is being purchased, employees could end up charging hundreds or even thousands of dollars of business expenses to their personal credit cards, which is not ideal. Instead, the company should consider either a credit card or fuel card to cover these expenses.

The problem with issuing credit cards to employees is that they have few, if any, controls. In general, they can be used to purchase anything, anywhere, anytime which can easily lead to employee misuse or theft. By contrast, fuel cards offer multiple spending controls, detailed fuel transaction data, and usage reports for accounting and management teams.

Another consideration for businesses with employees who use their personal vehicles for business purposes is offering a standard car allowance or a mileage reimbursement plan. Those might be useful options to offset fuel expenses incurred by employees, depending on how your business operates and how much fuel is being purchased.

Ensure Employee Accountability

Employees misusing a company credit card to buy fuel for their personal vehicle instead of a company vehicle or to buy convenience store items is a common problem for many businesses. Left unresolved, these activities could become very costly.

But with fuel cards, purchases are normally limited to fuel, not additional items. Plus, you can limit transactions to a specific dollar amount or gallon quantity to match a vehicle's tank capacity. This ensures there aren't extra funds available for personal use.

Most fuel cards also include an odometer entry and will calculate MPG based on driver inputs. If someone is using a fuel card for personal use, it will be easier to catch than with other payment methods because the MPG will be significantly lower than expected. Since fuel cards also track employee name, vehicle, date, time, and product type, you'll have the information you need to hold employees accountable.

Save Time and Money

Whether you have a large organization or a small team, as a business owner, you want to ensure time and money are spent wisely. Gathering fuel receipts from drivers or reviewing credit card statements looking for fuel purchases can become an accounting nightmare.

With a fuel card program, you'll be able to easily access the data and reports that you need to save time. You can download transactions into Excel for upload into your accounting software. Run reports to compare usage by time period, driver, vehicle or department.

Another benefit of fuel cards is that they often provide discounts at the pump or monthly rebates. This can be beneficial for businesses whether you purchase thousands of gallons of fuel each month or just a few hundred gallons. Assuming there aren't hidden fees, fuel card savings can add up quickly for customers.

What Types of Companies Use Fuel Cards for Employees?

Businesses of all sizes, whether they have employees driving company vehicles or personal vehicles for work-related tasks, utilize fuel cards. They're an effective way to efficiently manage fuel expenses. Whether you manage a fleet of trucks or a team of outside sales representatives, a fuel card can be beneficial, and you should consider implementing one for your operations.

Who is Responsible for the Company Fuel Card Program?

There are often multiple stakeholders involved in managing a fuel card account.

Fleet managers or operations managers will oversee establishing the account, setting up the limits, and managing the cards. They'll decide which employees or departments are issued cards. They'll also have access to the fuel card account online to edit, cancel or order cards based on driver needs.

Controllers and accounting teams normally handle fuel card reporting since they're responsible for fuel expense reports and fuel tax reports. They also provide important decision-making information to the fleet manager when it comes to setting financial goals for the program.

For small businesses, the owner is often the final decision-maker but could also be involved throughout the process. This is because they usually assume financial responsibility for the fuel card program, hence their involvement. They might also utilize an accountant to help track company fuel expenses and be responsible for fuel card reporting.

How do Company Fuel Cards Work for Employees​?

It’s easy for employees to use fuel cards as they operate similarly to credit cards. Here’s the process for using most fuel cards: 

1. Swipe the fuel card at the gas pump.
2. Enter a driver ID or PIN.
3. Enter the vehicle odometer, if required.
4. Select the fuel product and begin fueling.

Fuel Card Policy for Employees

Businesses should consider creating a fuel card policy to establish guidelines for employee usage and outline the consequences of misusing gas cards.

A fuel card policy for employees should include: 

• Instructions on how to use the card
• Which purchases are permitted and prohibited
• If fueling a personal vehicle is allowed for work-related purposes
• Actions to take if a card is lost or stolen
• Who to contact if a problem occurs at the pump

Get a free driver fuel card policy template to help get you started. 

Prepaid Company Gas Cards for Employees 

Some businesses might look to company prepaid gas cards as a way to manage fuel expenses. While they have some appeal, prepaid cards can also be burdensome for accounting teams. You'll have to keep up with the need to prepay fuel for employees by transferring funds so that cards can be reloaded. If your business regularly purchases a significant amount of fuel, this process can be inefficient.

As an alternative to prepaid cards, company gas cards allow you to set daily, weekly and even monthly purchase limits for your employees. For example, if the business gas allowance for a salesperson is $100 per week, you can set a weekly card limit of $100 to control how much fuel that employee can purchase. That limit resets each week without having to reload funds onto a card. After the billing period ends, your company simply pays the account invoice.

Best Company Gas Cards for Employees 

Many company gas card options for employees are available in the marketplace. Here's a quick comparison of a few top fuel cards for employees that your company might consider:

You can also check out the 10 Best Fleet Fuel Cards for Business [2025] for a more in depth comparison and guide to help you choose the best fuel card for your business.

How to Choose the Right Fuel Card for Your Employees

Selecting the right fuel card ultimately depends on which option best aligns with your company's needs. Consider these key questions and tips to assist you in your decision-making process:

1. Which company gas card gives you the best coverage for where you operate?
2. Which card gives you the best discounts at nearby stations? Calculate the discounts based on the anticipated number of gallons you'll purchase at eligible discount locations.
3. What is the pre-discount price per gallon? Is it higher than the pump price?
4. Calculate the anticipated fuel card fees for each card and deduct them from the discounts to determine the net savings.
5. Check third-party review sites to see customer feedback about the fuel card product and the quality of customer service you can expect.
6. Check that you will receive the controls and reports necessary to meet your fleet fuel management objectives.
7. Upon completing the evaluation process, identify the best option for your business.

How to Get Company Gas Cards for Your Employees

Opening a company gas card account should be relatively easy. Most fuel cards have an application process that includes these general steps:

1. Complete an online fuel card application: Enter your contact information, business information, and how much fuel you expect to use. Read the application terms to make sure there are no hard credit checks that will affect your credit score.
2. Set up your payment information: Once approved, you'll receive your credit terms so that you can set up payment information for your account.
3. Submit a fuel card order form: On the fuel card order form you'll assign fuel cards to drivers or vehicles and you'll set up fuel card controls for each card.

After you've completed the application process and submitted your company gas card order form, you should receive notification when your fuel cards are shipped as well as customer login information to access your fuel card account online.

If you are interested in signing up for the P-Fleet Voyager fuel card or CFN fuel card, you can apply online in just a few minutes.