What is a Fuel Surcharge Waiver on a Credit Card?

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.    

What is a Fuel Surcharge? 

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. 

What is a Fuel Surcharge Waiver?

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.  

What is a Fuel Surcharge Waiver on a Credit Card?

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. 

How Much is the Fuel Surcharge on a Credit Card?

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

How to Get Maximum Fuel Surcharge Benefits? 

To get maximum fuel surcharge benefits, you can follow these tips -

• Annual Fees

For maximum savings, compare the annual savings with the annual fee/cost of the credit card and choose the one with the maximum difference. 

• Choosing the Right Cards

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. 

• Combine With Other Offers

Try to claim other offers, discounts, and vouchers with the fuel surcharge waiver to get maximum benefits.   

• Maximum Waiver Limit

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.

• Partner Fuel Stations

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.

• Minimum Transaction Amount

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 Payments

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.