In today's fast-paced world, a Credit Card has become a necessity for many, especially when it comes to managing fuel expenses. One feature that stands out for frequent commuters and travellers is the "Fuel Surcharge Waiver." This particular Credit Card benefit can lead to significant savings. In this guide, we will explore the concept of fuel surcharge waiver, its meaning, eligibility, and how to avail it on your Credit Card.
What is fuel surcharge waiver?
Many Credit Cards offer the fuel surcharge waiver feature. It refers to removing the additional fee typically charged on fuel purchases when using a Credit Card. The cardholder effectively reduces the fuel cost by waiving off this surcharge, usually around 1% to 3% of the transaction value. These Credit Cards are suitable for vehicle owners and frequent travellers.
What are Fuel Credit Cards?
Fuel Credit Cards are designed to offer benefits on fuel purchases. These cards not only provide fuel surcharge waivers but may also offer additional rewards like cashback or points redeemable against fuel purchases. They are an ideal choice for individuals who spend a significant portion of their budget on fuel.
Also Read: Credit Cards: Six reasons why you should have a credit card
Benefits of fuel surcharge waiver Credit Cards
The primary benefit of a fuel surcharge waiver is the direct cost savings on fuel purchases. Over time, these savings can accumulate to a significant amount, especially for those who drive regularly or have high fuel expenses. Here are some elaborated benefits of using Credit Cards that offer fuel surcharge waivers:
1. Direct Cost Savings:
- Each time you use your card at the petrol pump, the system waives off the usual 1-3% fuel surcharge.
- These small savings per transaction accumulate to a significant amount over time.
2. Enhanced Reward Points:
- Earn additional reward points specifically on fuel purchases.
- Users can often redeem these points for more fuel, cashback, or other rewards.
3. Increased Convenience:
- Enjoy the ease of cashless transactions at fuel stations.
- Quick and efficient, it reduces the need to carry cash.
4. Budget Management:
- Recording all transactions helps in tracking fuel expenses.
- Easier to budget and manage monthly fuel expenses.
5. Promotional Offers:
- Access to exclusive deals and discounts at partner fuel stations.
- Periodic promotional offers that might include double points or additional discounts.
6. Wide Acceptance:
- Such Credit Cards are widely accepted at a majority of fuel stations.
- Offers flexibility and convenience regardless of where you refuel.
7. Additional Perks:
- Some cards offer complimentary benefits like roadside assistance.
- Access to premium services at selected fuel stations.
Fuel Surcharge Waiver: Eligibility and Conditions
Any resident or non-resident Indian between the age of 18 and 70 years can apply for a Fuel Surcharge Credit Card.
Apply with a copy of your PAN card or Form 60, colour photograph, proof of income (latest pays lip/Form 16/IT return copy), residence proof and identity proof.
The bank may consider your credit score and credit history before approving your application.
You can apply for a Fuel Credit Card online on Axis Bank website or at an Axis Bank branch. You will be informed of the status of your application within 21 days.
Maximizing fuel benefits
The IndianOil Axis Bank Credit Card offers an outstanding example of how such features can be beneficial. This Credit Card is engineered to enrich your fuel transactions with a plethora of rewards and benefits.
Also Read: 6 benefits of using a Credit Card
How to get a fuel surcharge waiver on the IndianOil Axis Bank Credit Card:
1. Welcome Benefit: Cardholders receive 100% cashback up to ₹250 on their first fuel transaction within the first 30 days of card issuance.
2. Accelerated Reward Points: Earn 20 reward points per ₹100 spent at any IOCL fuel outlet in India, translating to a 4% value back on fuel transactions. The maximum eligible spend per statement month is ₹5000.
3. Fuel Surcharge Waiver: The card offers a fuel surcharge waiver of 1% on fuel spent at any fuel outlet in India for transactions between ₹200 and ₹5000. The system caps the maximum waiver at ₹50 per statement cycle, although the non-refundable GST charged on the fuel surcharge remains.
4 .Additional Rewards: Besides fuel benefits, the card also offers rewards for online shopping and instant discounts on movie tickets booked via BookMyShow.
Conclusion
Understanding and utilising the fuel surcharge waiver can lead to noticeable savings for Credit Card users, especially those who frequently incur fuel expenses.
Credit Cards with this feature, offered by Axis Bank, not only provide financial relief at the fuel pump but also enhance the overall utility and value of the card. Remember to check the specific terms and eligibility criteria associated with your Credit Card to make the most of this benefit.
FAQs
(1) What is fuel surcharge waiver in credit card?
Some Credit Cards offer waiver of 1% fuel surcharge fee when the card is used to purchase fuel. To get the waiver you will need to purchase fuel for a fixed amount, (usually a range). There may also be a certain maximum waiver that is permitted per credit cycle.
(2) Is fuel surcharge refundable?
The GST charged on fuel surcharge is non-refundable.
(3) Is it compulsory to pay surcharge?
In case of fuel surcharge waiver you don’t need to pay the surcharge.
(4) How does fuel surcharge work?
When you use the Fuel Credit Card at a fuel pump, you will not have to pay the surcharge fees. These cards are co-branded cards
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision
