A fleet management card, also known as a fuel card, is a payment card designed for businesses that operate vehicle fleets. It allows drivers to purchase fuel, maintenance, and other related expenses without using personal funds or cash. Fleet cards provide businesses with greater control over spending and offer features such as detailed transaction tracking, customisable spending limits, and discounts at participating vendors. These can simplify expense management processes and minimise fraud.

Fleet management cards are an important component of the fleet management software market, which is projected to grow from about $23.7 billion in 2023 to nearly $116.6 billion by 2032. Below, we’ll explain what businesses should know about fleet management cards: how they’re used, how to get started using them, and how to choose the right card provider.

What’s in this article?

• What are fleet management cards used for?
  
• How do fleet management cards work?
  
• Common features of fleet management cards
  
• How to get started with fleet management as a business
  
• Comparing fleet management card providers
  

What are fleet management cards used for?

Businesses that operate vehicles use fleet management cards to make purchases, track expenses, and support their operations. Here’s how they do so:

• Fuel purchases: Businesses use fleet cards primarily to buy fuel, often at a network of stations and sometimes with negotiated discounts. This can lead to substantial savings, especially for businesses with large fleets.

• Maintenance services: With fleet cards, companies can purchase regular maintenance and necessary repairs such as oil changes and tire rotations.

• Expense tracking and management: Companies use fleet cards to track every transaction associated with a vehicle. This helps them monitor spending patterns, identify potential savings, and allocate resources more effectively. It can also reduce the administrative burden of managing receipts and reimbursements by consolidating vehicle-related expenses onto a single platform.

• Control and security: Business managers set spending limits and restrictions on the types of purchases employees can make with fleet cards. Managers might restrict card use to fuel and maintenance-related purchases. Or these cards might require driver ID or odometer readings at the point of sale for an extra layer of security and compliance.

• Reporting and analytics: Fleet management cards provide detailed reports that break down spending by vehicle, expense type, driver, and more. These reports help with strategic decisions regarding budgeting and financial planning.

• Support for multi-location operations: Fleet cards can adapt to different regional requirements, such as changes in currency. This simplifies logistics and accounting processes for businesses operating in multiple locations or across borders.

How do fleet management cards work?

Fleet management cards are very similar to credit cards but typically offer additional features and controls meant specifically for businesses that manage vehicle fleets. Here’s how they work:

• Application and setup: A business applies for a fleet card through a provider, which is often a fuel company or a financial institution. During setup, the business sets spending limits, purchase restrictions (e.g., fuel only), and assigns cards to individual drivers or vehicles.

• Card usage: Drivers use the card like a credit card at authorised merchants, which are usually gas stations, repair shops, and toll booths. Drivers might need to provide additional information such as vehicle ID and odometer readings.

• Transaction tracking: The card records every transaction, providing detailed information to the business. This information includes date, time, location, amount spent, and sometimes vehicle mileage.

• Billing and reporting: The provider sends a consolidated bill to the business, usually on a monthly basis, with itemised transactions for each card. This simplifies accounting and allows businesses to track expenses and identify potential misuse.

• Expense management and control: Businesses can access online portals or software to manage cards, adjust spending limits, generate reports, and monitor fuel consumption or maintenance costs.

Common features of fleet management cards

Fleet management cards have features that help businesses manage vehicle-related expenses efficiently. Here are some of the most common features:

• Fuel discounts: Many fleet cards have discounts on fuel purchases.

• Maintenance discounts: Some cards provide discounts on maintenance and repair services at participating locations.

• Customisable spending limits: Businesses can set specific spending limits on each card to control expenses and prevent unauthorised purchases.

• Transaction controls: Businesses can configure cards so they allow only certain types of purchases and can restrict them to specific times of day or days of the week.

• Driver PINs: Businesses can assign each driver a unique PIN to ensure that only authorised users can make transactions, adding another security layer.

• Reporting and analytics: Fleet cards typically come with access to a management platform that provides detailed reports and analytics. These reports can segment spending by driver, vehicle, expense type, and more.

• Integration with expense management systems: Many fleet cards can integrate directly with a company’s existing accounting or expense management software. This further simplifies bookkeeping and financial reporting.

• Real-time alerts and notifications: Companies can implement alerts for unusual spending patterns or other anomalies to quickly address potential issues such as fraud and misuse.

• Geolocation services: Some cards include GPS capabilities that enable businesses to track the location of a transaction. This helps monitor fleet movements and ensure compliance with company policies.

• Mobile app support: Many fleet card providers have mobile apps that allow a driver to check their balance and find the nearest fuel station or service centre that accepts their card.

How to get started with fleet management as a business

To get started with fleet management as a business, take these steps:

• Vehicle assessment: Make a list of each vehicle you own. Include the vehicle’s age, type, and costs for fuel and upkeep.

• Operational review: Evaluate how each vehicle is used day-to-day. Are there vehicles that are overworked or barely used? This step helps identify inefficiencies and better align your fleet with actual business needs.

• Rightsizing: Adjust the size and composition of your fleet based on your current and future needs.

• Lifecycle management: Develop a clear plan for when to retire older vehicles and bring in newer, more cost-effective ones. Consider the costs of the whole lifecycle, including potential resale value.

• Telematics implementation: Equip your vehicles with GPS and telematics to keep a real-time tab on where they are and how they’re being used. This tech can also track driver behaviour and vehicle health.

• Software solutions: Choose a fleet management software that can integrate with your other business systems. Mobile compatibility enables managing on the go.

• Policy manual: Create a detailed manual that explains everything from who can drive the vehicles to how to report an accident.

• Budgeting: Establish a budget that covers all expected costs and forecasts savings from planned improvements.

• Cost tracking and reduction: Use fleet cards for all vehicle-related purchases to simplify transactions and gather data on where you can cut costs.

• Selection and training: Be selective about who drives your fleet. Conduct training in safe driving, legal compliance, and compliance with internal policies.

• Safety incentives: Motivate your team with incentives for safe driving.

• Eco-friendly practices: Encourage drivers to adopt eco-friendly driving practices and plan fuel-efficient routes. Research alternative fuels that could reduce your carbon footprint. In the long term, plan a shift towards hybrid or electric vehicles for your operations, if feasible.

• Key performance indicators (KPIs) and dashboards: Clarify KPIs for aspects such as cost efficiency and vehicle uptime. Use dashboards to monitor your fleet’s performance against these metrics.

• Regular audits and adjustments: Review your fleet’s performance biannually. Adjust your tactics based on the results and trends.

Comparing fleet management card providers

Here’s what to look for when comparing fleet management card providers.

Coverage and acceptance

• Check how widely the card is accepted, especially if your fleet travels regionally or nationally. A larger network means more places where your drivers can refuel or get services without going off course.

• Consider whether the card is accepted at service stations that are along your routes and have competitive pricing.

Cost and fee structure

• Look at the fee structure, including monthly or annual fees, transaction fees, and any hidden costs. Comparing these can help you avoid paying more than necessary.

• Evaluate what discounts on fuel, maintenance, and other services are available. Some cards provide substantial savings that can offset other costs.

Management features

• Check whether the cards have customisable controls to restrict spending by category, amount, or even time of day.

• Look for real-time transaction tracking and customisable alerts for unusual activities to help you manage risks and prevent fraud.

Reporting and analytics

• Determine how accessible and user-friendly the provider’s reporting features are. Detailed reporting can help you analyse spending patterns, track costs, and enhance fleet operations.

• Check whether the fleet card system can integrate easily with your existing accounting or fleet management software.

Customer support

• Find providers with reputations for excellent service. Ensure support is available 24/7, especially if your fleet operates outside normal business hours.
  

Security features

• Investigate the card’s security measures. These might include PIN requirements, pump prompts for odometer readings, or the ability to quickly cancel lost or stolen cards. Some cards require driver ID verification for each transaction as an extra security layer.
  

Flexibility

• Look for flexibility in setting limits and controls so they match your operational requirements.

• Consider whether the card provider can scale with your business as it grows and as fleet needs change.