Is A Business Gas Credit Card A Money Saver?

Business gas credit cards typically offer rebates for all gas purchases. The rebates vary by card, but most are in the 3-5% range. The offer is not just for gasoline purchased, but you will also get the rebate on coffee, snacks, sodas and other items you purchase in their convenience shop. This may sound like a great deal, but you should know what you are getting into first, here are a few important tips to keep in mind:

Introductory Rates

Most credit card offers will offer rebates for a short period of time. For example, a card may offer 7% cash back on all gas station purchases for 30 days. Read the fine print carefully because most rebate offers will not last beyond an introductory period, typically 30 to 90 days. After that, the rates will adjust to a much lower rebate, often as low as half the initial offer. This cuts your benefits off immediately.

Adjustable Interest

Also, the interest rates you are charged for the card itself will skyrocket. The credit card company has the right to increase your interest rate at any point in the future. Credit card legislation introduced in 2009 makes it illegal to raise rates on existing debt. However, you will still face larger expenses on new debt if the interest rates go up. Every dollar you spend on your credit card could end up costing you more than you anticipated.

Some Gas Stations Don't Qualify 

If you buy your gas at a warehouse or discount location, your purchase may not qualify for the rebate. Wholesale retailers offer heavily discounted gas, but you will be unable to take advantage of the low prices and get a rebate from your card provider. Typically, you will be required to use a stand-alone gas station. This means the rebate may not even compensate the rate you pay for the more expensive gas.

Higher Interest Rates

Rates on gas credit cards tend to be higher than on typical bank credit cards. Many people will use their business gas card then await an expense check from their employer to pay off this amount. The result will be very high penalties each month on debt that is outstanding. If you are using a card with a high interest rate, remember to pay it off before your other cards each month. Start with the most expensive card and move down from there.

Rebates are Not Easy to Redeem

Most credit card gas rebates do not simply come to you each month in the mail. Similar to the process you go through to claim reward points from your credit card or airline, you will have to request your rebate each month. At times, you will be left waiting awhile before you eventually receive your rebate. There may additionally be times when rebates are held by the company. This often occurs around the holidays when many users are calling in their rebates all at once.