What is a fleet card and how do they work? A Guide to Fuel Costs and Control

Managing fuel expenses for a large fleet is a significant challenge. Without the right tools, fleet managers struggle with volatile fuel prices, a lack of spending visibility, and the administrative burden of tracking countless receipts. This often leads to uncontrolled costs, potential for misuse, and missed opportunities for efficiency. A comprehensive fleet card program provides the solution by centralizing fuel procurement, offering robust data insights, and enabling strict spending controls to transform your fleet’s largest variable expense into a strategic advantage.

Before we explore the benefits a fleet card can bring to your company, let's cover the fundamentals. What is a fleet card, and how does a fleet card work? This blog will break down the basics, providing a clear foundation for understanding how these cards can streamline your fleet's fuel management program and increase overall operational efficiency.

Key takeaways

• Strategic Fuel Card Selection is Crucial: Choosing the right fleet card programs is essential for maximizing savings and operational benefits. The best programs offer more than just payment processing; they provide data and tools for comprehensive fuel management.

• Data Drives Decisions: One of the primary fleet card benefits is gaining visibility to the data it captures. This information tracks fuel consumption, monitors driver behavior, and makes informed decisions to optimize your fleet's efficiency.

• Control and Security are important considerations: Fleet cards offer customizable spending controls and enhanced security features that significantly reduce the risk of fraud and unauthorized purchases, protecting your company’s bottom line.

• Efficiency Through Consolidation: Fleet card programs consolidate fuel-related expenses into a single, easy-to-manage platform, reducing administrative burdens and simplifying accounting processes.

What is a fleet card?

A fleet card, also known as a fuel card, is a payment card that drivers use for vehicle-related expenses. Unlike standard credit cards, its primary function is to purchase fuel and manage vehicle-related expenses.

How does a fleet card work?

A fleet card is designed for efficiency and control. When a driver uses a fleet card at a fueling station, the transaction captures critical data, such as the purchase amount, location, time, and fuel type. This information is sent to a central platform where fleet managers can monitor spending, analyze trends, and address non-compliant purchases. Fleet cards provide a powerful tool for overseeing your second largest transportation expense.

What are the primary benefits of a fleet card program?

A strategic fleet card program offers far more than just a convenient payment method. It serves as the foundation for a data-driven approach to fuel procurement. Here are six key fleet card benefits that can reduce costs and enhance operational efficiency.

1. Consolidate spending into a single platform

Fleet cards bring your fuel spending into one centralized system. Instead of chasing down paper receipts and reconciling multiple credit card statements, all transaction data flows into a single platform. This consolidation simplifies accounting, streamlines expense reporting, and gives you a clear, comprehensive view of your fleet's fuel expenditures.

2. Implement customizable spending controls

With fleet cards, you gain greater control over your driver’s purchasing behavior. You can set specific limits and restrictions tailored to your company's policies. These controls can include:

• Transaction Limits: Set daily or per-transaction spending caps.

• Purchase Restrictions: Limit purchases to fuel only or allow for specific maintenance items.

• Time and Day Controls: Restrict when the cards can be used.

These customizable controls ensure that spending aligns with your budget and company guidelines, preventing misuse and unexpected costs that can hurt your bottom line.

3. Enhance security and prevent fraud

Fleet cards are equipped with advanced security features that are superior to traditional payment methods. Driver-specific Personal Identification Numbers (PINs), transaction monitoring, and alerts for suspicious activity help safeguard your accounts. This enhanced security minimizes the risk of fraudulent charges and unauthorized use, protecting your assets and promoting driver accountability.

4. Track and analyze fuel transactions

The data captured by fleet cards is one of the most powerful benefits for your procurement and operations strategy. You can access detailed reports that provide insights into fuel consumption patterns against odometer readings, driver behavior for fuel efficiency training, and non-compliant purchases that left 50-70 cents-per-gallons at the pump. By analyzing this data, you can identify opportunities that enhance operational efficiency and support initiatives like driver compliance monitoring.

5. Extend your fueling network coverage

Leading fleet card programs are accepted at fueling stations across the country. This broad coverage ensures your drivers can find convenient and approved fueling locations, no matter where their routes take them. For fleet managers, this means you can direct drivers to preferred, cost-effective fueling stations without adding unnecessary out-of-route miles.

6. Integrate with fleet management systems

Many modern fleet cards integrate seamlessly with your existing fleet management systems. This integration automates data syncing and streamlines workflows, connecting fuel purchase data with operational metrics like telematics and route planning. The result? A holistic view of your fleet's performance and time saved on manual data entry and analysis.

Find the right fleet card with Breakthrough

Fleet cards are a powerful tool for enhancing operational efficiency and cutting unnecessary expenses. When paired with the right providers and technologies, they provide the insights and control needed to optimize your fuel management strategy. By consolidating fuel spend, enhancing security, and providing data insights, fleet cards empower you to reduce costs, streamline administrative tasks, and drive continuous value.

Ready to take the next step in maximizing your fleet's potential? Discover how Breakthrough's Fleet Solutions can elevate your fuel card program to deliver real savings and operational clarity.

Frequently asked questions about fleet cards

What is the main difference between a fleet card and a regular credit card?

The primary difference is control and data. A regular credit card only provides basic transaction information (vendor and amount). A fleet card offers Level III data, including volume purchased, odometer readings, fuel grade, and driver/vehicle identification. This allows for detailed reporting and the ability to set specific purchasing restrictions that aren't possible with standard credit cards.

What should I look for in a fleet card program?

When evaluating fleet card programs, look for features that align with your business needs. Key considerations include the size and relevance of the fueling network, the robustness of spending controls and security features, the quality of the reporting and analytics tools, and the ability to integrate with your other fleet management software.

Where can drivers use a fleet card?

Fleet cards are typically accepted at a wide network of fueling stations. For example, Breakthrough’s fuel card program offers access to thousands of locations nationwide, including major truck stops and retail stations, ensuring your drivers can find fuel wherever their routes take them.