What is Fuel Surcharge Waiver on Credit Cards? Check Out the Best Fuel Cards for You in 2024!

Mobile banking and online payments have been reshaped by credit cards. Credit cards offer an unlimited number of benefits and incentives for your spending, in addition to security. But other financial transactions—like paying for an item or service or buying fuel—also involve fees. This fee is frequently referred to as a surcharge.

You often pay a higher fee because of surcharges whenever you use your credit card to make payments for petrol. But to make it more convenient, a few banks have eliminated the fuel surcharge on credit card payments.

Credit cards are smoothly integrated into our everyday financial routine, providing ease of use, rewards, and savings. In terms of these, fuel credit cards are quite popular for their amazing advantages.

Fuel cards are created for frequent travellers. These cards, designed with distinct features, provide incentives and discounts aimed particularly at fuel and spending. Fuel credit cards offer numerous rewards in the form of cashback and discounts.

The Best Fuel Credit Cards for You in 2024

The fuel surcharge waiver facilitates reasonably priced fuel transactions. In the following paragraphs, you will see what is meant by the fuel fee waiver on a credit card. Additionally, you will discover its advantages, how it works, and tactics for maximizing savings at gas stations.

Let’s See What is Fuel Surcharge Waiver!

“Fuel Surcharge Waiver,” a feature provided through numerous credit cards. It represents the elimination of an extra cost that is often applied to the purchase of fuel made with a credit card. This perk saves users money by reducing the cost of fuel payments.

Some banks and credit card companies present a fuel surcharge waiver, which excludes users from paying additional fees wherever they are using their card to pay for fuel. The surcharge is normally 1% of the fuel spent amount, applied by fuel shops when buying with credit cards, with a minimum cost of Rs 10 per transaction. The surcharge includes 18% more in GST, which is charged in addition to the credit card fee.

Therefore, the overall credit card charge is 1% of Fuel cost + 18% of (1% of Fuel cost), or a minimal fee of Rs. 10 for each transaction.

How Does the Fuel Surcharge Get Calculated?

• Petrol costs Rs 2000.
• Fuel surcharge: 1% of 2000 = Rs 20
• GST on fuel surcharge of Rs 20 is Rs 3.6.
• Overall credit card charges: Rs 2023.6.

It is vital to understand the criteria to be able to receive fuel surcharge waivers with credit cards, such as:

• Surcharge Waiver Applicable Stations: Several credit cards waive the fuel surcharge across all fuel power outlets, whereas some waive the surcharge at merely a few stations or partner companies.
• Max Surcharge Waiver Limit per Statement or Cycle Period: Certain credit card brands have a maximum cap (for example, Rs 100) on the amount of petrol surcharge waiver offered per financial statement or calendar month, and the waiver will not be offered on purchases over the cap.
• Transactions Capable of Receiving a Surcharge Waiver: Certain credit cards need a specific minimum and highest sum of fuel spent to qualify for a fuel surcharge waiver. For instance, Rs 400 minimum and Rs 4000 maximum. Fuel purchases exceeding the specified limitations are not eligible for the surcharge waiver.

The Advantages of Fuel Surcharge Waiver:

• Savings on expenses: By removing the fuel surcharge, customers with cards can save on their fuel bills, resulting in a reduction in fuel prices.
• Convenience: Card members can make use of their credit cards for fuel transactions without paying any extra fees, which increases the user’s flexibility and convenience.
• Serving as a Budget Assistance: A fuel fee waiver promotes better budgeting by allowing cardholders to precisely forecast how much they spend on fuel without paying additional costs.

Eligibility Criteria for Receiving the Fuel Surcharge Waiver

Certain Eligibility Requirements and Terms:

• The surcharge waiver is only valid at petrol stations that have collaborated with or are linked with the card issuer.
• Credit card companies may require a certain minimum transaction value to unlock the fuel cost waiver. Maximum waiver limit.
• Issuers of credit cards may set a certain surcharge waiver cap, which applies only to purchases up to a specified monetary value. Transactions that exceed the specified limit are subject to surcharge fees.
• Retaining a good payment history is critical, as certain issuers provide the surcharge waiver as a reward for prompt payment of remaining balances.
• Annual charges may be imposed on certain credit cards that offer a fuel surcharge waiver.
• Before submitting an application, prospective cardholders should compare the possible fuel savings against the card’s annual cost.

Deliberate Methods for Raising Benefits

To maximize your advantages, look at the following ideas:

• Pick out the right card.
• Look into the card’s benefits and check if the rewards match your fuel consumption habits.
• Choose a card that offers the best cashback or benefits on purchases of fuel and has a broad base of associated fueling stations.
• Look into combining the surcharge waiver with other relevant offers and rebates that are provided by the credit card issuer to maximize the amount you save.
• Keep track of the amount of cashback, reward, and surcharge waiver advantages regularly.
• This strategy will assist you in determining your savings and optimizing fuel expenses.

Bottom Line

You may save a lot of money with credit cards on entertainment, groceries, everyday shopping, and lifestyle expenses. For owners of vehicles, fuel represents a significant expenditure. Using a fuel credit card that waives fuel surcharges, you can cut out unnecessary expenses and still get benefits and rewards on your purchases.

To take advantage of these fuel surcharge perks, you must make sure that your credit card provider does not deduct fuel purchases from costs that earn rewards and that you fulfill the minimum spending requirements.

If you select the best fuel credit card for your requirements and put the right approaches into practice, the fuel fee waiver on fuel credit cards can greatly increase your savings. Converting fuel expenses into chances to maximize financial savings is more important than simply handling payments.