Carrier surcharge for using fleet fuel card?

[pjjjjj]

Hi Expediters!
I haven't been here in a long time, but it's great to see so many of you 'oldies' still here! I can't believe how long it has been! Hope things are going well for y'all!
We're obviously not expediting any more.. I recently started a new biz doing bookkeeping and admin after being an employee for too many years!
One of my first clients is in trucking! It's been awhile since I used to do the books for our own expediting business, but I can't recall there being a charge tacked on to the fuel price noted on the actual fuel receipts, which the carrier deducts from the o/o's settlement.. but perhaps I just don't remember everything, hoping someone here can help!
I'm talking about when an o/o is signed on with a carrier and uses the carrier's fleet card for fuel purchases. Client gives me the receipts, I match them up to the settlement sheet to ensure there are no mistakes in charging back the fuel, but the amounts don't match. I *can* match the receipts to the settlement amounts based on the dates, the quantities purchased, and the location. I thought perhaps it might be a 'fee' from the carrier to the o/o for using the card, however the additional amounts do not seem to be the same percentage all the time, ie one time it was .7% more, the next time it was 1.4% more than the charge on the actual receipt - I'm thinking if it was a 'fee', shouldn't it be the same percentage every time, or a flat fee or something?
The client/o/o doesn't know of any reason why the 2 amounts would be different, and I believe it is illegal anyway, for the carrier to tack on a transaction fee without being up front about it, and it seems a little high for that. So here I am, hoping some of you might be able to enlighten me?
Thank you!!!!!

 

[Moot]

Welcome back! Sorry I can't enlighten you. Were all of your client's fuel purchases made in Canada? If not it could be some kind of administration fee for dealing with the exchange rate. Just an uneducated guess.

 

[pjjjjj]

Thanks for your reply Moot! Thanks for the welcome back! Only one out of the first set I received was purchd outside of ON, and that one, it's impossible to tell what they used as an exchange rate because of that additional charge and no info again, (altho in looking at the exchange rate of the day, it looks like a LARGE difference from what it should have been!).

It is a 'Pilot Fleet Yellow' card. He has a big truck, so the thought has occurred to me that it could have something to do with IFTA taxes being tacked on (perhaps a small amount on each fuel purchase(??) until the carrier does his reconciliation(??), ... but I read that it's more normal for a carrier to bill such amounts quarterly or something, and secondly, wouldn't the percentage of the rate of the surcharge he's being charged be the same percentage every time, if that was the case, at least amongst all purchases say within one state (say ON in this case)? I would think so? So I think it can't be that either, but would love to hear from everyone who uses fleet cards... if they get charged some kind of transaction fee? (It seems like the amount is rather large to simply be a transaction fee too).

Another thing is that normally, isn't there also a discount on the fuel, which shows up between getting the actual receipt and when it gets billed back by the carrier - doesn't the carrier pass on the fuel discount they receive? - so everyone's settlement may show different amounts being billed back by the carrier than what was on the receipt, but it's usually in the o/o's favor, right? In this case it's the opposite. Bugging me!

 

[geo]

ask tax people here , maybe they might help

 

[davekc]

Hey PJjjjj. lol Couple parts with no answers. IFTA generally is calculated by the owner operator or the carrier and is not part of the initial fuel pump transaction. Fees can represent a lot of things. Exchange rate, what the card provider makes, and what kickback if any the carrier makes. That has to be weighed against the actual fuel discount.
For example, comdata charges a fee or load, but also has a discount that is reflected after the purchase and is reflected on the drivers account.
They would be best served to contact their carrier to understand exactly how it is set up and what charges apply.
Again, glad to see you hanging out!

 

[pjjjjj]

Thanks geo and davekc for your responses and glad to see you still here! I've asked for a copy of the contract with the carrier, since everything is supposed to be spelled out on there as to any deductions, and how the 'security deposit' is to be treated, etc. And yes, I'll have to get my client to take it up with the carrier as to what the additional charge on each fuel purchase is for, exactly.