Fleet Management Fuel Cards 101

Businesses Have Had To Pivot To Survive COVID: Fuel Cards Play A Role

Since March of last year, businesses across the country have been looking for ways to survive this economic downturn and outlast the pandemic. Companies small and large have been applying for PPE loans, furloughing employees, and finding ways to downsize without losing momentum. Unfortunately, for many people, these measures have not been enough. The number of active business owners in the U.S. saw a sharp decrease between February and April of 2020, falling by 3.3 million—or 22%—which accounts for the largest decline on record. This decline in active businesses affected almost every industry, not just the service industry, as one might expect. As these Washington Post infographics illustrate, even the biggest, most secure companies realized significant layoffs due to COVID.

Washington Post Infographic On Job Losses Due To COVID-19 Pandemic

Businesses that have managed to survive thus far have had to come up with innovative ways to keep customers engaged. These companies have found ways to cut corners without sacrificing customer service. In the fleet business, one surefire way to manage costs is by getting your company a fleet fuel card.

What Is A Fleet Fuel Card?

In its most basic sense, a fleet fuel card is a credit card your fleet uses to purchase fuel. Fleet fuel cards offer a lot more than just a way to pay at the pump. For fleet management, a fuel card can be a device that gives them back much-needed time for all the other aspects of their job by providing effective, efficient ways to control spending.

How Do Fleet Cards Provide Control And Savings For Fleet Management?

Fleet cards are efficient, easy tools that can help companies manage a crew of drivers out in the field. Managers have more oversight with a fleet card than with a bank card. They can see how cards are being used, where drivers are located at any given time, how often and for how long they’re idling, and whether they’re making unauthorized purchases on the company account. The best fleet cards provide the opportunity for managers to implement spending controls and oversight that will build a fleet system and team that is tighter and more efficient.

With a fuel card, fleet management can save money with available rebates and tools to curb spending. Automatic expense reports can be generated within your fleet fuel card account, which saves time and allows you to focus on other ways of building your business. As your business grows, you can add tools like premium GPS vehicle tracking and fleet management data analytics which we go into further detail on below.

Manage Fuel Costs And Use Employee Controls With Fleet Cards

Fleet fuel cards give fleet management the tools to expedite business systems and the potential to improve your bottom line. Some of the ways fleet fuel cards provide efficiencies are through:

• Driver IDs at the pump so you can prevent the use of lost or stolen cards
• Automatic online accounting so you can stop chasing down receipts
• Easy-access reports for every transaction, including location, price per gallon, fuel grade

GPS Vehicle Tracking And Telematics With Your Fleet Card

With some fleet cards, you can sign up for telematics on your account. Fleet telematics gathers a range of data using Global Positioning System (GPS) technology, sensors, and vehicle engine data to provide fleet operators with the information they need to manage their fleet.

For fleet management, this is a Godsend. Telematics lets you track your drivers so you know at all times where their vehicles are located, at what speed they’re driving, what their fuel use looks like, their driving performance, and more. This information lets you know where your weak spots are and allows you to optimize your fleet to help you develop smarter and more efficient operations processes and procedures.

Fleet Management Data Analytics With Your Fleet Card

When you add data analytics to your fleet card account, you can gain actionable insights into fueling and purchasing behavior. A strong data analytics program will provide you with easy-to-read reports based on your fueling data. This information will help you manage budgets, improve fleet performance, discover cost savings, and spot any red flags that might arise. Make sure you choose a card that has a data analytics option if this kind of tracking is something you’ll find useful. With data analytics within your fleet card account you can:

• Easily track KPIs
• Focus on key cost drivers
• Quickly and accurately budget fleet expenses
• Spot anomalies and card misuse

Fleet Management Factoring

Factoring helps you get paid faster and protect your fleet from lost revenue by giving you immediate access to your accounts receivable. It’s not a loan, the money you’ll receive is money that’s already owed to you.

Get a factoring program tailored to meet your needs to keep things running smoothly for your company and your customers. With benefits such as same-day funding, cost-effective solutions, and reliable service, a factoring program with your fleet fuel card company can help you manage the ins and outs of your finances in a flexible, efficient way. Look for a program with no hidden fees, no monthly minimums, and no limits on the amount of funding provided. Some companies even offer a factoring funded fuel card where fuel is paid for directly from existing invoices. With some of these factoring fuel cards, you even get discounts and rebates on fuel, tires, maintenance, and more.

Theft Control For Fleet Management

Due to a rise in oil prices coupled with the state of our economy, a greater temptation exists for employees to use the company’s dollar for their own personal use. This kind of fraud is currently at an all-time high. When you distribute a gas card or credit card to your employees for company use, you’re at a disadvantage as compared to those who use fleet fuel cards for fleet purchases. Gas cards and credit cards do not provide a company full control over what their drivers purchase—employees can easily purchase convenience store items or fuel their personal vehicles, without raising alarms. Fleet cards help companies identify and prevent unauthorized purchases.

With a fleet fuel card, a fleet manager can set restrictions unique to each driver. Some common restrictions include the types of purchases an operator can make (fuel only, fuel and maintenance, etc.), how much fuel a driver can purchase per day and where drivers can make purchases. For example, one type of control would intervene if a driver tries to purchase fuel after work hours. The system will block the transaction and send an alert to the fleet manager identifying the driver trying to make the purchase. With an instant alert, the situation can be rectified immediately.

Vehicle Maintenance Support

Sophisticated fleet cards provide your company with data about each individual fleet vehicle so you can track and respond to maintenance needs before they become problematic. Preventative maintenance saves your company time and money and brings peace of mind. When maintenance oversight is handled within the support offered by your fleet card provider you have time to focus on more pressing concerns and expand the time allotted to bigger picture planning.

Decrease The Burden On Your Drivers

For many independent contractors driving in fleets across the country, the system dictates that they pay upfront for any expenses on the road, submit receipts, and be reimbursed at a later date. With a fleet card, the individual drivers no longer have to pony up cash at the outset. By decreasing the burden on your drivers, you offer them a better work environment which will make for a more engaged and loyal fleet of drivers.

Discounts Offered At The Pump

Many fleet cards offer an additional incentive: rebates and discounts. You’ll have the potential to save your company money every time your driver pulls up to a fuel station. Fleet cards connect you to a large network of authorized fuel and maintenance merchants, giving your drivers a range of acceptance stations. You’ll typically have the opportunity to negotiate volume savings on monthly purchases with most fuel card companies. Most fleet cards also offer additional company benefits such as 24/7 emergency roadside assistance programs, which ensure that your drivers are supported and can get on the road quickly and safely.

How Do I Get a Fleet Fuel Card For My Business?

It’s easy to sign up for a fleet fuel card, and you can learn what steps to take to sign up here.

What Is WEX Edge And How Does It Help Fleet Management?

WEX Edge is a service that WEX customers automatically receive when they become fleet card customers with us. The WEX EDGE savings network offers exclusive discounts on the things that keep small businesses moving—like fuel, tires, wireless, and more. WEX customers get the buying power of a major corporation. WEX Edge allows you to use your account to pay for goods and services beyond fuel. You can consolidate and control your business spending in a single, seamless application while saving money on tires, accommodation, wireless services, and cashing in on fuel rebates. WEX Edge is one more example of how fleet fuel cards have evolved in recent years to fulfill the needs of growing fleet companies.

Fleet Cards Can Help Fleet Management Protect Their Business During The COVID-19 Pandemic

As we continue to navigate our way through the COVID-19 pandemic, one way for fleet management to protect their businesses from unnecessary risk, and gain greater control over fleet behavior is by signing up for a fleet fuel card. Learn more about what WEX has to offer to fleet managers here.

To learn more about WEX, a growing and global organization, please visit wexinc.com.

Resources:
Society for Human Resources Management
Washington Post