Fuel surcharge waiver is a benefit offered by almost every credit card nowadays, which encourages credit card users to transact at fuel stations using their credit cards.
This article explains in detail what a fuel surcharge waiver is and how it works, along with some tips to save more money at the fuel station.
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What is Fuel Surcharge on Credit Card?
Fuel surcharge is an additional fee fuel merchants charge to cover the cost of accepting credit card or debit card payments. Whenever a transaction is done at a fuel station through a credit card, the card network levies an additional fee on that transaction, which ranges from 1% to 2.5%.
What is Fuel Surcharge Waiver on Credit Card?
Fuel surcharge waiver is a refund of the additional fee that is charged for transactions done through credit cards at fuel stations.
How Does Fuel Surcharge Waiver Work?
To understand how fuel surcharge waiver works, let us consider two cases:
Suppose we get ₹500 worth of fuel in our car from the nearest fuel station, on which our card network charges a fuel surcharge of 1% plus 18% GST, which will be ₹5 + ₹0.90 = ₹5.90.
In this case, the user will get a fuel surcharge waiver of ₹5.90. However, some credit cards offer the waiver only if the fuel charge exceeds ₹10.
Suppose you put fuel worth ₹4000 in your car and you are charged 1% plus 18% GST fuel surcharge, then you will be charged ₹40+₹3.6=₹43.6 as fuel surcharge. In this case, you will get ₹43.6 as fuel surcharge waiver.
Using the right credit card can provide a refund of the applicable fuel surcharge, as well as cashback or reward points.
Benefits Of Fuel Surcharge Waiver On Credit Card
Many credit card issuers use fuel surcharge waivers as a unique selling proposition (USP), which is a great benefit. This benefit not only provides a refund of the applicable fuel surcharge but also provides an opportunity to earn additional cashback or reward points.
However, the fuel surcharge waiver benefit comes with certain terms and conditions on many credit cards, failing which users will be denied any cashback or reward points.
If you drive frequently, then the benefit of fuel surcharge waiver can prove to be very beneficial for you because if you pay for fuel transactions with your credit card, you will get extra cashback or reward points in addition to the fuel surcharge waiver.
Credit Cards that Offer Fuel Surcharge Waiver
Here is a list of credit cards that offer fuel surcharge waivers:
- SBI BPCL Octane Card
- Citi IndianOil Credit Card
- Axis IndianOil Credit Card
- ICICI HPCL Credit Card
- HDFC IndianOil Credit Card
Fuel surcharge waiver is a refund of the additional fee charged for transactions done through credit cards at fuel stations. Many credit cards offer this benefit, which not only provides a refund but also an opportunity to earn cashback or reward points.
To avoid fuel surcharge, one can use a credit card that has the facility of fuel surcharge waiver. Paying for petrol with a credit card can be beneficial if the fuel surcharge waiver facility is available on the credit card.
Fuel Surcharge Waiver FAQ
Why Do Credit Cards Have A Fuel Surcharge?
Credit cards have a fuel surcharge because the card network charges a fee of 1 to 2.5% from the fuel merchant on transactions done at fuel stations through any credit card, which the fuel merchant recovers from the cardholder in the form of a fuel surcharge.
How Is Fuel Surcharge Calculated?
The fuel surcharge is calculated by adding an additional fee between 1 to 2.5% to the transaction amount, according to the appropriate fuel station. For example, if you spend 1000 rupees on fuel at a fuel station with a 1% fuel surcharge, you will have to pay an extra 1% + 18% GST, which will be 11.8 rupees.
How Can I Avoid Fuel Surcharge On Credit Cards?
You can avoid fuel surcharge on credit card payments at fuel stations by using a credit card with the fuel surcharge waiver facility.
Is Fuel Surcharge Refundable?
Yes, fuel surcharge is refundable, but only if you use a credit card with the fuel surcharge waiver facility.
What Is The 1% Charge In Credit Card Fuel Payments?
The 1% charge in credit card fuel payments is called a fuel surcharge, an additional fee added to the transaction amount by the fuel merchant to cover the cost of accepting credit card payments.
Should I Pay For Petrol With A Credit Card?
Yes, paying for petrol with a credit card can offer great value in cashback or reward points. However, you should ensure that the credit card you use has the facility of fuel surcharge waiver to avoid paying extra fees.
Which Credit Card Is Best For Fuel Surcharge Waiver?
Here is a list of best credit cards with fuel surcharge waivers:
1. SBI BPCL Octane Card
2. Citi IndianOil Credit Card
3. Axis IndianOil Credit Card
4. ICICI HPCL Credit Card
5. HDFC IndianOil Credit Card