Credit Cards and Fuel Surcharge: What It Is and Why Companies Waive It

When you use a credit card to pay for fuel—whether for your car or bike—you might notice an additional fee called a fuel surcharge on your bill. Understanding what this is and why banks sometimes waive it can help you save money and use your credit card smarter.

What Is a Fuel Surcharge?

· A fuel surcharge is an extra fee levied by credit card companies when you pay for petrol, diesel, or other fuels.

· It is typically a small percentage of the total fuel bill, often around 1–2%.

· The charge is imposed because fuel purchases incur processing costs and banks pass this on to customers.

Why Do Credit Card Companies Waive the Fuel Surcharge?

· Many banks offer fuel surcharge waivers as a benefit on select credit cards.

· These waivers are usually up to a certain monthly limit, such as ₹500 or ₹1,000.

· To encourage usage, banks advertise cards with fuel surcharge waivers to attract customers.

Key Points to Keep in Mind

1. Check Your Card Terms

o Not all credit cards offer fuel surcharge waivers. Always check the card’s benefits.

2. Monthly Cap on Waiver

o Waivers usually apply only up to a certain amount per month. Any excess is charged.

3. Eligibility Conditions

o Some banks require transactions above a minimum amount to qualify for the waiver.

4. Online and Fuel Stations

o Fuel surcharge waivers may not apply to online fuel payments or certain stations, so verify with your bank.

How to Save on Fuel Payments

· Use a credit card with a fuel surcharge waiver.

· Track your monthly spending to ensure you don’t exceed the waiver limit.

· Consider reward points or cashback on fuel purchases for additional savings.

Bottom Line

A fuel surcharge is a small fee that banks charge on fuel transactions, but select credit cards waive it, making it easier for users to save money. By choosing the right card and understanding the terms, you can fill up your tank without extra costs while also enjoying rewards or cashback.

Disclaimer:

The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.

Find Out More:

Related Articles: