Selecting the Right Fuel Card Program for Your Fleet

Utility fleets pay an average of $0.17 per mile for fuel; other types of fleets pay $0.14 per mile. It’s no wonder fleet managers turn to fuel cards to help manage expenses.

Even when organizations operate on-site fuel tanks, there are often instances when drivers must purchase fuel from an outside retailer or truck stop. A fleet fuel card is an efficient tool for centrally tracking and managing all fuel expenditures in real time, preventing unpleasant surprises from unauthorized purchases.

But given the array of fleet fuel card programs to choose from, how do managers determine which one will work best for their fleet operations? Use this eight-point checklist as a guide.

1. Identify your needs.
Begin by analyzing current and predicted fuel usage patterns as well as the work profiles of the utility’s fleet assets. A fuel card can do more than simplify payments; it can be a gateway to better spending control and maintenance planning.

At Colorado Spring Utilities, fuel purchased with fleet cards accounts for only about 5% of overall fuel usage, but the card program remains an essential part of fleet management, according to Brad Pritekel, the company’s fleet supervisor. “Our fleet cards are for one-off situations or remote work individuals.”

CSU has about 1,300 vehicles and 400 trailer units that require fuel. Pritekel said the fleet includes E-85 vehicles, CNG units and 18 electric vehicles that are fueled and tracked via fuel cards; most other vehicles and trailer units are fueled at fleet hubs. Using the fuel card for EV charging enables the utility to expand its EV fleet without investing in infrastructure.

2. Look for a program widely accepted by fuel suppliers.
“A fuel card should offer broad acceptance to keep drivers fueled anywhere they need,” said Justin Pozega, manager of fuel and taxable benefits for Element Fleet Management (www.elementfleet.com).

To further control fuel spend, some suppliers (e.g., Circle K, Shell) offer cards that are only accepted at their company locations; they may also offer premium-level cards accepted at non-branded stations that provide additional benefits such as maintenance discounts and 24/7 roadside assistance.

3. Assess the fuel program’s key features.
These should include real-time card and PIN management, which allows for immediate card activation or cancellation, helping to prevent misuse. Managers should also be able to set spending controls for the fuel account.

Some programs combine maintenance and fuel purchases under one card for added convenience. Other essential features to look for include robust fraud monitoring; a mobile app to locate the nearest and most affordable fueling locations; after-hours call center support; and the ability to capture additional pump data – like odometer readings, job numbers and driver PINs – for more accurate reporting.

4. Check for flexibility and value-added services.
Beyond basic functionality, leading fuel card programs stand out with added flexibility that allows them to tailor their programs to a fleet’s unique needs. Enhanced fraud protection tools like real-time alerts help to reduce risk. Consolidated reporting and billing simplify expense tracking and reconciliation.

5. Determine which programs are keeping pace with technology.
Many programs are rolling out cardless payment options, allowing drivers to fuel up through mobile apps or other digital means.

Integration with telematics systems is also on the rise, linking fuel transactions with vehicle data for enhanced fraud detection and operational insights. Utilities typically track vehicle usage through mileage to guide maintenance intervals, but that doesn’t always present an accurate picture given the work profiles of utility vehicles. CSU’s Pritekel said the company is looking for a solution that will link telematics to track hours and mileage rather than fuel usage alone, especially for units that may not travel many miles but run all day long: “That would give us a backup, so we’re not just tracking one means to quantify how much usage we’re getting for maintenance intervals.”

6. Ensure the program supports EV charging.
Numerous fuel card providers are expanding their support for EV charging at public stations. This capability, already available for many clients, is quickly becoming a must-have as sustainability goals and mixed-energy fleets become more common.

7. Establish what success looks like for your fleet.
Success is measured by both program usability and cost-effectiveness. Fleets must consider total cost – not just per-gallon fuel prices but administrative time, fraud losses and support costs as well. A strong fleet fuel card program will deliver rich data that supports fraud prevention, carbon dioxide tracking, cost analyses and profit-and-loss management.

8. Decide if now is the time.
“Typically, fleets look into fuel card programs when they grow to the point where tracking fuel manually becomes overwhelming,” Pozega said.

A fraud incident may also push a fleet to seek more secure fueling solutions. Additionally, the potential to generate revenue through an interchange share or to take advantage of discounts and rebates from card issuers can make fuel card programs an appealing business decision.

Switching vendors often comes down to the need for better integration so that fuel data can be linked with maintenance schedules, vehicle replacement planning and cost analyses. Limited card acceptance, especially in remote areas, can be a major problem as well. Fleets could also be seeking lower program costs, stronger fraud mitigation tools or the ability to capture Level 3 transaction data – such as product codes and job numbers – for more granular reporting.

The Bottom Line
“Start by identifying all your operational needs and any special requirements. Make sure the fuel card network aligns with where your drivers go most often,” Pozega said. “Regularly test the market through [requests for proposal or requests for information] to ensure your program stays aligned with new innovations and evolving features.”

About the Author: Gary L. Wollenhaupt is a Colorado Springs-based freelance writer who covers the transportation, energy and technology sectors for a variety of publications and companies.