Credit cards offer a wide range of benefits and rewards to help maximise your savings, and one of them is a fuel surcharge waiver. If you are a credit cardholder and also own a vehicle, understanding how fuel surcharge works and how to avoid it with credit cards becomes essential.
With this card, you can commute to your work or take weekend trips without worrying about hefty fuel expenses. Here’s an informative guide about how fuel surcharge on credit cards works.
What is a Fuel Surcharge?
The fuel surcharge is an additional charge that you need to pay if you’re using your credit card to get fuel for vehicles. Credit card issuers add this charge to cope with the transaction processing costs.
Remember, this charge is over and above your fuel expense. The fuel surcharge is typically a small percentage of the total fuel transaction, and the issuer sets this percentage. Suppose the percentage is 2%, and your fuel transaction is ₹5,000. In this case, your surcharge will be ₹100 (5000 X 2% = 100).
All About Fuel Surcharge Waivers on Credit Cards
A fuel surcharge waiver on a credit card is a feature you enjoy with some credit cards that allows you to avoid the fuel surcharge when you refuel your vehicle. This waiver can either reduce or altogether remove the surcharge, giving you a financial benefit.
It’s especially valuable for you if you drive often to work or go on road trips on weekends. To benefit from the fuel surcharge waiver, simply use a credit card that has this feature when you purchase fuel.
Here are some of the key benefits of these cards:
- Convenience: A credit card with a fuel surcharge waiver makes paying for gas easier. You can fill up without carrying cash or worrying about making several transactions.
- Cost Savings: The main benefit of the fuel surcharge waiver is that it can help you save money. By removing or lowering the extra charge, you pay less for fuel, which adds up to lower costs over time.
- Better Fuel Management: Knowing that the surcharge is waived or reduced might encourage you to refuel more often or fill your tank up completely.
- Streamlines Expense Tracking: Paying for your fuel refills with credit cards helps keep track of the monthly fuel expenses, making it easier to monitor your spending and manage your budget.
Points to Consider and Conditions About Fuel Surcharge Waivers on Credit Cards
If you travel frequently, then you can easily use this option to pay for your fuel. This will minimise your fuel expenses and save more money. While trying to use this option on your credit card, you will need to look for a few things:
- Minimum Fuel Transaction: Many credit cards need you to make fuel purchases of a minimum amount to avail of this benefit. You need to keep that in mind while purchasing fuel. Look for a credit card option that doesn’t come with such limitations to benefit on every fuel transaction.
- Annual Maintenance Fees: Find a credit card that offers you fuel surcharge waivers but at a minimum or no annual fees. Getting the benefit of a surcharge waiver for a substantial annual maintenance fee might not be a smart decision. You can find many fuel surcharge wavier credit card options with low or no annual fees.
- Benefit at Specific Fuel Stations: Not every fuel station will accept credit cards with fuel surcharge waivers, so while purchasing your fuel, look for designated stations that offer you this advantage. If you follow a route, you can take note of several stations offering this feature and try to use them when you need fuel.
- Maximum Fuel Surcharge Wavier Limit: Credit card issuers might set a limit on how much surcharge you can avoid, usually only for purchases over a certain amount. If you exceed this limit, you’ll have to pay the surcharge on the amount that goes over the limit.
If you are searching for a credit card to avoid paying extra on fuel, then you can consider the One Credit Card. With this card, you can get a 2% valueback on fuel and also get a 1% surcharge waiver. Moreover, this is a lifetime-free credit card with no joining or annual fees.
Additionally, you can enjoy many deals and discounts on categories like entertainment, medicine, groceries and electronics. It also gives you up to 5X reward points on your top two spending categories each month. With the One Card App every bill payment will be at your fingertips.
To make your life easier and to experience a hassle-free bill payment process, apply now.
