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When using credit cards, it is important to use them in a manner that leads to maximum savings and benefits. One such offer that credit card issuers offer is fuel surcharge waivers. The concept includes waiving an additional transaction fee when purchasing fuels which is 2.50% to 3.00% each time.
Having a fuel cost saving credit card is essential in times when people need to move around for jobs. Let’s learn how to get maximum benefits from such credit cards.
Fuel Surcharge is the fee you have to pay to your card issuer for the cost they will incur on transferring the amount to fuel stations. It is deducted to cover credit transactional costs to the fueling stations, and further to maintain the fluctuating fuel prices. This fee applies to all sorts of debit and credit transactions used to purchase fuels.
Fuel surcharge waiver refers to the reduction or waiving of the extra amount that is charged for using a credit card. All credit card issuers run various offers and vouchers that waive any additional cost for buying fuel.
Considering the needs of frequent travelers, credit card companies offer fuel charge waivers and also provide special discounts on fuel purchases from partner fuel stations. It could be vouchers, discounts, or direct waive-offs.
The credit card issuers bear the additional transactional cost of fuel purchases. However one must be clear that there is a specific range between which the fuel surcharge is waived.
Fuel Surcharge could range from 1% to 3% of the fuel amount which is paid via credit card. Some credit card issuers impose a specific amount and not the percentage of the fuel purchased.
Let’s try to understand it better with an example -
Fuel purchased = Rs.1,200
Fuel Surcharge fee = 2.50%
The total amount that the buyer needs to pay in total via credit card is -
Fuel price + Fuel Surcharge +Service tax on surcharge
Rs. 1200 + Rs.30 + Rs.5.63 = Rs.1235.63
To get maximum fuel surcharge benefits, you can follow these tips -
For maximum savings, compare the annual savings with the annual fee/cost of the credit card and choose the one with the maximum difference.
Always choose a card that has a dense network of fuel stations, whose features and offers match with your spending habits and needs for maximum savings.
Try to claim other offers, discounts, and vouchers with the fuel surcharge waiver to get maximum benefits.
Credit companies set limitations on the amount they will waive off a fuel surcharge. Once you cross that, you will billed normally. For example, the One Plus Credit card allows a fuel surcharge waiver up to Rs.400 in a month.
Credit card issuers offer fuel surcharge waiver benefits with specific partner stations. You need to refuel with those partner fuel stations to seek waiver benefits.
To activate the offer, you need to make a minimum fuel purchase; which makes you eligible for a waiver. For example minimum purchase of Rs.500 of fuel.
Timely billing your credit improves your credit image and makes you eligible for such waiver-off offers on fuel surcharge.
Credit card issuers provide fuel surcharge waivers to attract buyers and increase their sales. Fuel surcharge is a transaction fee charged by credit card issuers when fueling at fuel stations. Waivers are used to ensure savings of 1% to 3% each time.
For maximum benefits, you must consider the best credit card offers, and minimum and maximum fuel surcharge capping for eligibility. You should also compare the annual benefits with annual card charges to have maximum savings on credit cards.
Fuel Surcharge is a transactional cost imposed by credit card issuers to cover their cost related to fuel transactions.
No; fuel surcharges are non-refundable as they are imposed to cover the transactional cost to the fuel stations.
You may use a fuel credit card for the following reasons -
A fuel surcharge waiver cap is a limit up to which the credit card company will waive your surcharge expenses. There is an upper and lower limit to be eligible.
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