When you use your credit card to pay for fuel, an additional fee called a fuel surcharge (1% to 3%) is often applicable for the payment. A fuel surcharge waiver means a benefit that eliminates this extra charge.
Why is there a surcharge? This fee covers the processing charges levied by payment networks and fuel stations. However, many credit cards today offer a fuel surcharge waiver, which means this extra charge is either partially or fully waived. For regular commuters, this small perk can lead to noticeable savings over time.
Credit card companies provide a fuel waiver as a perk to encourage cardholders to use the cards for fuel purchases. While a credit card petrol surcharge waiver seems like a small perk, it can add up over time, especially for those who are regularly on the road.
In some cases, cards also offer accelerated rewards or cashback on fuel, making them even more appealing for daily commuters who use their cars to get to work and back.
Here are some benefits you should be aware of regarding the elimination of fuel surcharge on a credit card:
Fuel credit cards, or cards that offer targeted rewards on fuel purchases, offer you a chance to enjoy consistent savings by waiving the surcharge. Some also offer cashback, helping you reduce fuel expenses further.
Credit cards come with features like chip technology, two-factor authentication, and fraud protection. These safety factors ensure safe and secure payments towards purchases.
You can earn reward points on every fuel purchase, which can be redeemed for free fuel, gift vouchers, or travel benefits. Some cards also offer additional perks like roadside assistance, travel insurance, and more to make driving less stressful on the pocket.
With a credit card that may be linked to a user-friendly mobile app, tracking your spending is easy. You can stay informed about all the fuel you are purchasing as well as your other expenses, and stay on budget.
Beyond fuel savings, credit cards offer other perks, such as discounts on dining, online shopping, and more, as well as reward points that you can redeem.
Here are some tips that you can rely on when searching for credit cards with a fuel surcharge waiver:
Pick a credit card that’s associated with numerous partner petrol stations and offers the biggest returns on petrol or diesel purchases.
Plan your fuel purchases in advance and try to fuel up at a partner station to take advantage of the waiver.
Certain credit card issuers let you combine the fee waiver with other current offers or discounts on fuel. Make sure you keep an eye out for these.
Keeping track of your cashback, rewards, and fee waivers is essential. It helps you understand how much you're saving on fuel and ensures you're making the most of your card’s benefits.
Credit card issuers often cap the fuel surcharge waiver at a certain monthly limit. If your fuel expenses exceed that threshold, you’ll be responsible for paying the surcharge on the excess amount. If you keep track of this, you can pay the amount over the limit using cash or your debit card to avoid these charges.
How much is the fuel surcharge on a credit card?
The typical fuel surcharge on a credit card in India ranges from 1% to 3% of the total fuel purchase amount.
What is a fuel surcharge waiver?
It is the removal of the extra surcharge that is added by credit card companies when you pay fuel bills via your credit card.
Is the fuel surcharge waiver applicable for all fuel types?
No, not all fuel types qualify for a fuel surcharge waiver. They are often valid for the purchase of petrol and diesel at specific petrol stations using specific credit cards. You must review your card's terms and conditions to check the details.
What if my fuel purchase exceeds the waiver limit?
If you go above this limit, you will need to pay the applicable surcharge.
How can I check if my credit card offers a fuel surcharge waiver?
You can review the issuer bank’s terms and conditions in the MITC document, check the issuer's website, or contact customer support.
Does the fuel surcharge waiver apply to wallet or digital payments linked to credit cards?
Usually, paying for fuel via digital wallets, applications, or aggregators may not qualify for a surcharge waiver. In most cases, you are required to use the card at a POS terminal. Make sure you check this feature by contacting the issuer’s customer support.
