Fuel Surcharge Waiver on Credit Cards Explained

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

Every time you stop at a fuel station and swipe your credit card, you might be paying more than just the price of petrol or diesel. That sneaky extra charge? It’s called a fuel surcharge—and it can quietly inflate your fuel bills over time. But here’s the good news: your credit card can actually help you dodge it.

Thanks to fuel surcharge waivers, you can save money every time you refuel—without changing your habits or driving less. It’s one of those underrated credit card perks that smart spenders never overlook.
Let’s break down what a fuel surcharge really is, how the waiver works, and how to start saving every time you fill up your tank.

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

Fuel Smarter, Save Better

Fuel surcharge waivers might seem like a small feature, but over time, they can lead to substantial savings, especially if you rely heavily on personal transport. Choosing a credit card that offers this benefit can help you keep your fuel expenses in check, without compromising on convenience.

With IndusInd Bank’s range of credit cards, you get to enjoy more than just surcharge waivers—you unlock a suite of benefits designed to make every spend rewarding.

Apply Now for an IndusInd Bank Credit Card today!