What Are Fleet Cards
Fleet cards are a type of payment card that allows businesses to manage expenses associated with the vehicles that they own and operate. They are provided by a business to personnel operating company vehicles. Fleet cards are used by transportation employees for fuel as well as vehicle repairs and maintenance.
BREAKING DOWN Fleet Cards
Fleet cards are unique to the transportation industry. Unlike a corporate credit card, which can be used for a broad set of authorized purchases such as travel, fleet cards are designed to be used specifically for expenses related to managing vehicles. Fleet cards have also been a target for new fintech solutions in the payments industry with a number of fleet payment servicers innovating in this area of the transportation market.
Fleet Card Benefits
Companies may decide to issue a fleet card to each employee that is authorized to use company vehicles rather than have each employee use a personal card. This reduces the administrative expenses associated with maintaining a reimbursement program to pay employees for the money they use on gas and vehicle maintenance. It also helps companies to review and manage itemized expenses for their equipment assets.
Generally, fleet cards can provide a level of oversight that lets businesses better manage their expenses, as well as identify cost-related trends. Business accountants may also use accounting analysis to adjust payment card limits and usage.
For example, a delivery business may issue a fleet card to each of its drivers to use to buy fuel and pay for maintenance. Since each fleet card is linked to an individual employee, the business is able to monitor how much each employee spends on his route and also create estimates for budgeting. If the company notices that a particular driver fills up their assigned vehicle more frequently than average, it may make a downward adjustment on the limit of the assigned card.
Fleet Card Providers
Emerging payment technologies have been advancing to offer many new and innovative solutions across a variety of industries with the transportation industry particularly being a key target. Numerous service providers in transportation payments have been expanding with Fleetcor providing one example. Fleetcor is a fleet card payment service provider offering corporate fleet card products. Some of their leading fleet card partnerships include MasterCard, FleetCards USA, The Fuelcard Company and Fuelman. Fleetcor also helps to simplify business accounting for transportation companies by partnering with businesses across the transportation industry for modern fleet payment solutions.