Understand what is Fuel Surcharge Waiver on Credit Cards?

Posted on Tuesday, October 29th, 2024 | By IndusInd Bank

Credit cards are more than just a convenient payment method. They come with a host of benefits, such as rewards programmes, travel perks, dining and entertainment offers, and more. A common benefit of credit cards you may have come across includes the fuel surcharge waiver. 

This waiver is represented as a percentage, such as a 1% fuel surcharge waiver or a 2% fuel surcharge waiver. To make the most of these credit card benefits, it is essential to know the meaning of fuel surcharge waiver. Let’s deep dive into the same. 

Understanding Fuel Surcharge Waiver 

Before looking at a fuel surcharge waiver, we must first understand what a fuel surcharge is. 

• A fuel surcharge is a fee levied by fuel stations to cover the cost of processing credit card payments for fuel purchases. 

• The fuel surcharge on a credit card can be around 1% to 3% of the total transaction value.

• When you use your credit card to pay for fuel, the surcharge can increase your overall fuel bill. For example, if you spend ₹3,000 on fuel, a 2.5% surcharge could add ₹75 to your total cost. 

• A fuel surcharge waiver helps you cut down these costs by reducing the surcharge amount by a specific percentage. The waiver refers to the exemption or reduction of the fuel surcharge fee to a specific extent. 

Now that you understand the meaning of fuel surcharge and its waiver, let’s understand how you can avail the waiver. 

How to Avail the Fuel Surcharge Waiver When Paying for Fuel?

Here’s how you can avail of the waiver: 

1. Use an Eligible Credit Card

First, ensure that you are using a credit card with fuel surcharge waiver benefits. IndusInd Bank’s Nexxt Credit Card and Legend Credit Card provide a fuel surcharge waiver of 1% to help you save on fuel credit card transactions. 

2. Make the Payment at Eligible Fuel Stations

Most credit cards offer fuel surcharge waiver benefits at all fuel stations. However, it is still recommended to check if the fuel station is part of your credit card provider’s waiver program.

3. Ensure the Transaction Amount is within the Prescribed Limit

Many banks have a prescribed limit for fuel surcharge waiver to be applicable. For example, the waiver may be available only for transactions between ₹400 and ₹4,000. Ensure that your fuel purchase falls within this limit to be eligible for the waiver.

4. Wait for the Waiver to be Credited

The fuel surcharge on the credit card is charged at the time of the transaction. However, the waiver will probably be credited to your account as a cashback or statement credit in the subsequent billing cycle. Keep a check on your credit card statement to ensure that the waiver has been applied.

Conditions for Availing the Fuel Surcharge Waiver

Along with understanding what a fuel surcharge is and how to avail its waiver, one must also look at the various conditions it entails:

Transaction Amount Limits

As mentioned above, the fuel surcharge waiver may be applicable only for transactions within a certain range. Transactions below or above this range may not qualify for the waiver.

Surcharge Percentage Waiver

The surcharge waiver is capped at a certain percentage of the total transaction value. For example, if the fuel surcharge waiver on your card is 1%, you will receive a 1% waiver on the surcharge amount of your fuel bill. 

Maximum Waiver Cap

Banks set a maximum limit for the waiver you can receive per billing cycle. For example, some cards may limit the surcharge waiver total amount to ₹250 or ₹500 per month. Once your total waiver amount reaches this limit, you will not receive additional waivers in the billing cycle. 

No Waiver on Taxes

The waiver will not take into consideration any taxes levied on the fuel surcharge amount. Taxes will have to be borne by the cardholder. 

IndusInd Bank Credit Cards that Offer Fuel Surcharge Waiver

Here are some notable IndusInd Bank Credit Cards that offer a fuel surcharge waiver:

Also Read: How to Choose the Best Credit Card with Airport Lounge Access

Conclusion

Fuel surcharge waivers are a nifty feature offered by many credit cards. If you are someone who drives a lot and frequently refuels, a credit card with fuel surcharge waiver benefits can be very beneficial. 

IndusInd Bank offers a range of Credit Cards, which along with a fuel surcharge waiver, also offer high reward points, complimentary movie tickets, airport lounge access, luxurious experiences, and more! 

Apply Now for an IndusInd Bank Credit Card today!

Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.