Fuel accounts for a large percentage of the operating budget for businesses that operate multiple vehicles. Your drivers need to be able to refuel anytime, but using corporate credit cards isn’t always the best option.
This is where fleet cards come in. If you don’t know fleet cards or how they work, you’ve come to the right place.
In this article, we’ll explain what fleet cards are and how they work, including the different types, benefits, and examples of fleet cards based on different brands.
What Is a Fleet Card?
Fleet cards, also known as fuel cards, are payment cards used for vehicle operations, including fuel and maintenance expenses. There are two types of fleet cards: debit and credit.
With a fleet card system, businesses can simultaneously monitor and control their fuel-related expenses while still giving drivers a way to handle their fuel costs. The company pays fuel and maintenance expenses for company-owned vehicles, so employees do not have to use their funds.
While giving drivers a company credit card is always an option, fleet cards often include specialized fleet management analytics and fuel discounts.
Fuel company 76, for example, has its fleet card program. By participating in this program and issuing its fleet drivers the 76 fleet card, companies can save up to 7 cents per gallon at 76, Conoco, and Phillips 66 gas stations. Monthly fleet reports will show vehicle, fleet, and driver level analytics.
Businesses of all sizes can benefit from fleet fuel cards. Among them are:
- Small companies with fewer than five trucks. Plumbers, electricians, and roofers are examples of such companies.
- A full-scale national operation. Fleet fuel cards are beneficial for companies with hundreds or thousands of vans.
Fuel cards are generally recommended for companies that purchase more than 1,000 gallons of fuel per month. Discounts and rebates usually start to kick in or accelerate at this point. A business credit card with fuel bonuses may be better if you purchase less than this amount.
Examples of Fleet Cards
Texaco, Shell, ExxonMobil, Chevron, and ExxonMobil are the largest oil and gas companies that issue fleet cards. Generally, companies using their cards are restricted to using the issuer’s locations.
In recent years, however, emerging payment technologies have offered many new and innovative solutions across various industries, with the transportation industry being a particular focus. There have been several service providers expanding their transportation payment offerings. Corporate fleet card products are offered by Fleetcor, a company that provides fleet card payment services. Its leading fleet card partners are MasterCard, Fuelman, FleetCards USA, and The Fuelcard Company. In addition to simplifying business accounting for transportation companies, Fleetcor offers modern fleet payment solutions to businesses across the industry.
Benefits of Fleet Cards
Businesses can save time and money using fleet cards to reimburse employees for fuel and mileage expenses. A card provider’s online and billing system also helps the business track costs.
A fleet card allows a business to better monitor and evaluate employee performance. Using the card provides insight into their employees’ daily routines and efficiency since the card is issued to individual employees.
In addition, fleet cards are designed so that 100% of the benefits associated with purchases, including discounts and loyalty rewards, accrue to the company alone. The benefits usually come in the form of fuel discounts. However, a company employee who uses the fleet card to purchase fuel will not receive personal gifts.
How Do Fleet Cards Work?
Since the 1980s, companies have issued fleet cards to employees who drive corporate vehicles. Companies in the transport industry use most fleet cards. Other common users of fleet cards include trucking companies, delivery services, and ridesharing companies.
Since businesses provide them, employees and drivers can use these cards instead of their personal cards. Instead of the employee filing expense reports to be reimbursed later, the card issuer can bill the company directly. Each authorized user’s charges are itemized on a single bill issued by a credit card issuer. Fleet cards are interest-free, just like charge cards, because companies must pay their outstanding accounts in full before the due date, that’s why.
A single company usually issues fleet cards. Cardholders are restricted from using them at any locations owned, operated, or franchised by the issuer. Similar to regular payment cards, fleet cards feature the card number, company name, authorized user’s name, and expiry date, though the latter two don’t always apply. In recent years, newer cards have a microchip on the front and a magnetic stripe on the back.
A fleet card, however, is designed for specific expenses related to managing vehicles, unlike a corporate credit card, which can be used for a broad range of authorized purchases, including travel. New fintech solutions have also been developed for fleet cards in the payments industry, with several service providers innovating in this area.
Let’s see what using a fuel card looks like:
- A company’s fleet of repair vans covers a 100-mile radius. Fuelman fleet cards are issued to all company drivers. During their daily service calls, drivers will use the Fuelman card to refuel at gas stations that accept Fuelman. Additionally, employees can use the cards for other expenses such as tolls or repairs.
- Fuelman’s bill is reviewed by the company’s comptroller each month and paid directly by the company. Due to this, drivers do not account for or produce any of these expenses.
Brand-Specific Fleet Cards vs. Universal Fleet Cards
Fleet cards can be further divided into universal or brand-specific types. The fleet cards of specific gas station chains, such as Exxon Mobil and Shell, are branded with the company’s name. Meanwhile, fleet cards issued by companies such as WEX or US Bank are not affiliated with any particular gas station chain.
Universal fleet cards are accepted at most U.S. gas stations, while brand-specific fleet cards are usually limited to that brand’s gas stations.
Nevertheless, some fleet card programs also offer cards that can be used at non-brand locations.
For example, Circle K offers a Fleet Card that can only be used at Circle K gas stations and a Universal Fleet Card that is accepted at 95% of U.S. gas stations. This is essential for fleet managers who have drivers traveling through areas where certain fuel companies don’t have branches.
Examples of Fleet Card Providers
As we mentioned before, fleet cards can be universal or brand specific. There are many different providers for both, but we’ll take a look at two of the most common ones:
Universal Fleet Cards
Wex and Fuelman are two of the most popular universal fleet card options:
Wex
Wex offers more than 70 fleet cards, including the WEX FlexCard, the simplest to use. This card offers a $0.03 per gallon rebate and has no annual fees or setup fees. Several are associated with WEX, including 76, BP, ExxonMobil, and Sunoco.
The WEX Connect app (available on Android and iOS) offers automatic accounting, customizable report options, and spending controls online and on the go. In addition, a balance can be carried month-to-month. The downside is that you’ll have to pay interest on a balance like you would with a traditional credit card, but you’ll have peace of mind when cash flow is tight.
Fuelman
With Fuelman’s Simple Saver Plus Card, you can save $0.10 per gallon at specific locations, such as Kwik Trip, Pilot, Petro, Speedway, TA, and TA Express, while you’ll save $0.02 at all other Fuelman areas. If you purchase many gallons from their network of over 50,000 stations, you could save a great deal of money.
There is a monthly fee of $7.99 per card, but it is waived for the first three months. However, this fee comes with a service package that includes 24/7 roadside assistance, detailed fuel and tax reporting, fraud monitoring, and business identity protection. In addition, a $50 loyalty bonus is offered annually, which partially offsets the monthly fee.
Brand-Specific Fleet Cards
ExxonMobil and Shell are two fuel companies that offer their brand-specific fleet cards:
ExxonMobil
The ExxonMobil BusinessPro card uses a tier-based rebate program that offers up to $0.06 back per gallon on fuel purchased from Exxon or Mobil.
There is a one-time setup fee of $40 and a monthly card fee of $2 with the ExxonMobil card. It is one of the largest brand-specific networks in the world, with more than 12,000 Exxon and Mobil locations. The card provides real-time alerts, such as when drivers spend more than an allotted amount, which is useful when managing expenses. In addition, spending limits can be set to prevent budget busting. The reports provide insight into when and where drivers refuel, mileage at each fill-up, and miles per gallon.
Additionally, the card can be extended to be accepted at 95% of U.S. retail fuel locations outside the ExxonMobil network for a $40 set-up fee and a $2 monthly fee.
Shell
The Shell Fleet Plus Card is accepted at over 13,000 Shell stations, allowing you to save up to $0.06 per gallon. No monthly, annual, or card fees are associated with this card. Various controls are available, such as when and who may make purchases and how much. Additionally, Jiffy Lube accepts the card.
How To Get a Fleet Card
To determine which fleet card program would suit your business with a fleet of vehicles, start by reviewing specific fleet card programs. Business owners with small fleets will have different requirements than fleet managers for large corporations.
You can apply for a fleet card once you’ve made your decision. Some fleet card programs, such as Circle K’s, allow you to use them online.
Final Thoughts
Multi-vehicle fleets and companies using more than 1,000 fuel gallons per month can benefit from fleet cards. Companies can better budget and control fuel-related expenses, while drivers don’t need to worry about paying from their pocket. You can manage your spending even easier with some cards that offer spending controls and reporting services. Most cards restrict drivers from gas pumping, but some allow you to use them for other expenses.
