A fuel surcharge waiver is a benefit that most credit cards offer these days. This perk reduces any additional charges that apply when using your card at fuel stations. By understanding how it works, you can select a credit card that can help you save the maximum on your fuel purchases.
How Does it Work?
In order to understand the mechanism of a fuel surcharge waiver, it is crucial to know what fuel surcharge is in the first place. It is the amount credit card companies charge to transfer the transaction amount to fuel stations. In a way, this is a service change linked to fuel purchases using a credit facility.
The surcharge can be 1% to 2.5% of the transaction amount, depending on the issuer. In addition, they also run offers or provide vouchers periodically to waive the surcharge amount. That way, you can pay your fuel bill using a credit card without worrying about the extra charges. The fuel waiver encourages the use of credit cards for fuel transactions.
To better understand why it matters, here are its benefits.
- Helps you cut back on added costs of purchasing fuel
- It makes it easy to fit the cost of fuel into your monthly budget
- You can buy fuel on credit without paying out of pocket
- It may apply across all the fuel stations in the country or at partner stations
How to Maximise the Benefits?
While this may seem like a very small charge, it can quickly add up. Over time you may end up paying a lot of money as fuel surcharge. Thus, it is important that you compare the maximum monthly waiver offered by the issuer when choosing your credit card.
Here are some additional tips to help you get elevated benefits when making a purchase at a fuel station.
- Choose the Best Card
First and foremost, you should choose the credit card that gives you the highest waiver in a month. Since getting a credit card depends on your eligibility, it is best to compare multiple options. Shortlist issuer with whom you think you have the best chances of getting quick approval for a card that has the maximum waiver.
- Promotional Offers
Every so often, credit card companies run promotional offers or discounts. You can combine those with your surcharge waiver fees to reduce the cost of refuelling.
- Partner Network
Another way you can get maximum savings on your fuel purchase is to plan your visit to a partner station. For example, assume your credit card issuer has a partnership with Indian Oil. Plan to visit your nearest Indian Oil outlet to save on surcharge waivers and enjoy discounts.
- Consider Limits
All credit cards come with a cap of the maximum surcharge waiver allowed in a month. Keeping this limit in mind when making the purchase is important. This is because if you make a transaction over this amount, the surcharge will apply.
- Utilise Reward Points
You can also save more money on your fuel purchase by redeeming your reward points. Combining this with the surcharge waiver, you can enjoy the cost savings benefit of your fuel credit card. Go with a card that offers high rewards on fuel spends.
- Making Timely Bill Payment
Issuers review your repayment history to check your eligibility for an upgrade or added benefits. Using a credit card responsibly can give you access to a card with better fuel benefits, including a higher surcharge waiver.
If paying in full is difficult, ensure you make the credit card minimum payment to continue enjoying its benefits.
- Consider the Annual Cost
If your credit card attracts a very high annual fee, the overall cost of using the card may be very high. Therefore, it is important that you consider all the charges related to your credit card to maximise your savings. If the annual cost outweighs the perks, the card may not be suitable.
That being said, other factors like interest fees and late payment charges also play an important role when you are selecting a credit card. Compare cards on the basis of these fees as many credit cards provide good deals on fuel with no joining or annual charges.
Considering the points mentioned above, you can select a card that perfectly aligns with your requirements and offers you savings on fuel. Before proceeding, check the eligibility criteria like age, income and credit score.
The One Credit Card can be a fantastic choice as it offers a 1% fuel surcharge waiver and comes with zero annual and joining fees. This lifetime-free premium metal card has no hidden costs and offers a plethora of benefits, such as discounts, offers, cashback and more.
You can also earn 5X reward points on your top two spending categories each month, and a range of deals on travel and more. Moreover, using its full-stack mobile app, you can stick to a budget and set spending limits. Apply online and explore all its benefits.
