Understanding How Gas Gift Cards Work

What is a gas gift card?
A fuel gift card, commonly known as a gas card, is a prepaid card used to purchase fuel at gas stations. These cards are issued by major oil companies such as Shell or ExxonMobil and also by specialized financial firms like Edenred, Fleetcor, Fuelman, and Fleetcard. Fleet managers can also use these cards for vehicle maintenance and related expenses, making them versatile tools for fleet management.

History of gas gift cards
Gas cards first appeared in the U.S. during the 1960s, initially resembling credit cards with customer and company details. Cashiers would record details to validate usage, which was cumbersome and prone to fraud. The advent of magnetic stripe technology simplified the process, allowing for safer, more efficient transactions, enabling fuel providers to monitor costs, control spending, and generate precise reports.

Advantages of gas gift cards
Gas gift cards offer various security features, including cashless transactions, chip-and-PIN protection, detailed itemized receipts, online controls to halt usage, restriction to fuel-related purchases, and fraud reporting options. These features help reduce risks like credit card skimming and provide greater oversight.

Although similar to credit cards in technology, gas gift cards differ in their operation: balances are not reset monthly, they have shorter repayment terms, can be customized for specific transactions, and typically require different payment terminals. The responsibility for fraudulent charges lies with the user in most cases.

Where to purchase gas gift cards
Gas cards are widely accessible and can be purchased at gas stations, online platforms, retail stores, or via direct orders online.

Top gas gift cards of 2017
Notable options include:

• Blue Cash Preferred Card from American Express: Offers 3% unlimited cashback at U.S. gas stations, 6% cashback on groceries up to $6000 annually, and 1% on other purchases. It includes a $150 sign-up bonus with $1000 spend in three months, a 0% intro APR for a year, and exclusive entertainment perks. An annual fee applies.
• Discover it Chrome: Provides 2% cashback on gas and dining up to $1000 quarterly, plus 1% on everything else. No signup bonus but offers double cashback in the first year, no annual fee, and free monthly FICO scores. Fees include a $3 balance transfer and up to $35 late fee.
• Chase Freedom: Offers 5% cashback on gas up to $1500 in the first quarter annually, plus 1% on all other purchases. No annual fee, minimum redemption of $20, and $150 signup bonus with $500 spend in three months. Also includes purchase protection insurance for 120 days.

Other desirable gas card options include Discover it, PenFed Platinum Rewards, Citi ThankYou Premier, Chase Ink Business, and various U.S. Bank and Chevron cards. Each offers cashback benefits and additional perks, making them valuable tools for your fuel expenses.

Since fuel expenses are routine for many, carefully assess which card aligns best with your spending habits before obtaining one.