If you own a business that has a fleet of vehicles, you might have heard of something called a fleet card, but what is a fleet card exactly? It's a payment card that is specifically designed for businesses that operate a fleet of vehicles. It allows businesses to pay for fuel, maintenance, and sometimes even other vehicle-related expenses without having to use cash or personal credit cards. Here's everything you need to know about fleet cards, including what they are, how they work, and why they're beneficial for businesses.
What is a fleet card and how does it work?
A fleet card is a payment card that is issued to businesses to manage the expenses of their fleets. These cards can be used to purchase fuel, maintenance services, repairs, and other vehicle-related transactions. Fleet fueling cards can be used by businesses with a single truck or those that have a large number of vehicles and need to closely track fueling and maintenance.
Fuel cards work in a similar way to credit cards. When a business signs up for a fleet card management program, they are issued cards that can be distributed throughout their fleet. Each card has a unique identification number and can be linked to a vehicle or driver. When a driver needs to purchase fuel or other vehicle-related services, they swipe the fleet fueling card at the point of sale.
The card provider tracks all of the purchases made with the card and generates an itemized statement that is sent to the business at the end of each billing cycle. This statement includes details about each transaction, such as the amount spent, the date of the purchase, and the location of the transaction, among other details. Card providers often offer online account management tools that allow businesses to track their spending, set spending limits, and manage their cards more efficiently. These features can be especially useful for businesses that have a large number of vehicles and drivers.
What are the advantages of fleet fueling cards?
There are several reasons why businesses often choose to use fleet fuel cards to manage their expenses. Here are some of the main benefits of using a fleet fuel card:
- Better control over spending: With a fleet gas card, businesses can set spending limits for each card, which helps prevent employees from overspending on fuel or other expenses. This can help businesses save money and avoid unexpected purchases.
- Improved record-keeping: The itemized statements provided by card providers can be used to track spending and identify areas where costs can be reduced. This can help businesses optimize spending and reduce overall vehicle-related expenses.
- Streamlined payment process: Rather than having to use cash or personal credit cards, drivers can simply swipe the card at the point of sale. This can save time and reduce administrative costs associated with managing expense reports and reimbursements.
- Increased security: Fleet cards are more secure than cash or personal credit cards. Each card has a unique identification number that can be linked to a specific vehicle or driver, which helps prevent fraud and misuse. Card providers also offer fraud protection and other security features that help protect businesses from unauthorized charges.
- Discounted pricing: Many card providers offer discounts, rebates or cost-plus pricing that can help businesses save money on fuel.
Which businesses benefit from using a fleet fueling card?
In general, any business that has a fleet of vehicles can benefit from using fleet cards. Here are some of the types of businesses that would benefit, to name a few:
- Delivery companies: Delivery companies that have a fleet of delivery trucks or vans would benefit from using a card. These cards can help these businesses manage their fuel expenses and track their spending more efficiently.
- Transportation companies: Transportation companies that provide services such as limousine rentals, airport shuttles, and other transportation services would benefit from using a card. These businesses often have a large fleet of vehicles that require regular fueling and maintenance.
- Construction companies: Construction companies that have a fleet of trucks and other heavy equipment would benefit from using a card. These businesses often need to refuel their vehicles and purchase other vehicle-related services while working on job sites.
- Municipalities: Municipalities that have a fleet of vehicles such as police cars, fire trucks, and public works vehicles would benefit from using a card program. These businesses need to manage their vehicle-related expenses in a cost-effective and efficient manner.
- Sales and service companies: Sales and service companies that have a fleet of vehicles for sales representatives and service technicians can benefit from using a gas card. These businesses need to manage their vehicle-related expenses while ensuring that their representatives and technicians have the resources they need to perform their jobs.
- Nonprofit organizations: Nonprofit organizations that have a fleet of vehicles for outreach and delivery purposes would also stand to benefit from the right fleet card. These organizations often have limited resources and need to manage their expenses carefully.
Evaluating fleet card companies
When choosing a business fuel card, there are several factors that businesses should consider. Here are some of the most important factors to keep in mind:
- Accepted locations: Businesses should choose a provider that is either accepted at a wide range of fuel stations or accepted at convenient locations along driver routes. This ensures that drivers can easily find a place to use the card.
- Fees and other charges: Companies should also consider the fees and charges associated with the card program. These can include card fees, transaction fees, late fees, and other charges. It's important to compare the fees and charges of different providers to ensure that businesses are getting the best deal.
- Customizable limits: Card providers offer a range of customizable features, such as spending limits, product restrictions, and other purchase controls. Businesses should choose a provider that offers the features that best suit their needs.
- Reporting and analytics: Card providers offer different reporting and analytics tools to help businesses track their spending and identify areas where costs can be reduced. Businesses should choose a provider that offers reporting and analytics tools that are easy to use.
- Customer service and support: Fleet owners should choose a card provider that offers excellent customer service and support. This includes responsive customer service representatives who can answer questions and resolve issues quickly.
Conclusion
In summary, fleet cards are payment cards designed to help businesses manage fleet expenses, which is why it's important to know what is a fleet card and what isn't. Cards offer a range of benefits, including better control over spending, improved record keeping, and streamlined payment processes. Before choosing the right fleet card, fleet managers should consider factors such as card acceptance, account fees, customizable limits, reporting and customer service. By choosing the right card provider, businesses can save money on fuel and improve how they track fleet expenses.
