Rebates look good on paper — but the math doesn’t add up

Fuel card providers often advertise “5¢ off per gallon” or a “1% rebate.” For a 500-vehicle fleet spending $2.4M* per year on fuel, that looks like this:

• $0.05/gal discount → $40,000 saved
• 1% rebate → $24,000 saved
• Total: $64,000 in annual benefit

Not bad, right? But here’s the problem: rebates only scratch the surface, while real cost drains like fraud and station choice are left untouched.

The real leaks in your fuel budget

1. Drivers choosing expensive stations

   Drivers often choose the most convenient station — not the cheapest. In fact, fuel prices can vary by as much as 70¢ per gallon within a single mile radius, and Car IQ studies show drivers choose higher-priced stations nearly 20% of the time — sometimes even more.
   
   That means a “discount” doesn’t always translate to savings. If a fleet secures 5¢ off per gallon at a preferred brand, but that brand is 30¢ more expensive on average than a nearby competitor, the fleet is still missing out on 25¢ per gallon in real savings. Across hundreds of thousands of gallons a year, those losses quickly outweigh the value of any rebate or discount.

2. Fraud eating into fuel spend

   Fuel cards rely on trust, and fraud slips through. Car IQ has seen fleets with 12% of their annual fuel spend lost to fraud**. On a $2.4M fuel budget, that’s about $288,000 gone every year — compared to just $24,000 back from a 1% rebate.
   
   One Car IQ client uncovered $150,000 in fraudulent charges in just 45 days. At that pace, years of rebate “savings” can be erased in a matter of weeks.

Station Controls

When enabled, Station Controls automatically blocks the most expensive stations within a one-mile radius of the vehicle. Using live location, real-time fuel pricing, and vehicle data, Car IQ dynamically redirects drivers to competitively priced stations nearby — without limiting access or delaying fueling. If a station isn’t on the Car IQ fuel map:

• Drivers can’t select it in the app
• They can’t activate the pump
• They can’t pay

The results speak for themselves: fleets using Station Controls save an average of 8¢ per gallon**, with some saving up to 36¢ per gallon.

Fraud Prevention

Car IQ lets vehicles pay directly by creating a secure vehicle identity that connects to merchants—eliminating physical cards and the risk of skimming or theft. Every transaction is authenticated with real-time vehicle data before, during, and after payment, ensuring only the right vehicle can purchase the right fuel in the right amount.
Here’s How:

• Vehicle Identity
  

  Each payment begins with confirmation of the vehicle’s unique ID.

• Pre-Transaction Checks
  

  Fuel tank capacity, fuel level, geo-location, mobile device proximity, and payment history are analyzed before authorization.

• At the Pump
  

  The right vehicle, right fuel, and right amount are validated in real time before a drop is dispensed.

• Post-Transaction Verification
  

  Car IQ confirms fuel was delivered into the correct vehicle, closing the loop on security.

Breaking it down: Car IQ vs. fuel cards

For a 500-vehicle fleet spending $2.4M per year:

• Fuel card rebates & discounts → $64,000 saved
• Car IQ savings:
  • Fraud elimination (12%) → $288,000
  • Smart station controls (8¢/gal) → $64,000
  • Net savings: $352,000

That’s over 5X the value of traditional fuel cards.

The Bottom Line

Rebates reward you for spending money — they don’t stop you from losing it. Car IQ eliminates the two biggest sources of fuel overspend: fraud and driver choice. The result is hundreds of thousands in annual savings, not just pennies at the pump.

*Numbers based on average fueling per fleet vehicle.
**Numbers based on a study by Car IQ.

Car IQ is a financial technology company and not a bank. Credit Card Services are provided and issued by Lewis & Clark Bank, Member FDIC.