Fleet Cards

What Are Fleet Cards?

Fleet cards are a type of payment card that permits businesses to oversee expenses associated with the vehicles they own and operate. Fleet cards, otherwise called fuel cards, act just like charge cards and are given by major oil or potentially specific credit companies. Businesses give their faculty — in particular transportation employees — with fleet cards for fuel, vehicle repairs, and maintenance.

How Fleet Cards Work

Fleet cards have been around in the United States since the 1980s, and are issued by companies to employees who use and operate corporate vehicles. The majority of companies that utilization fleet cards work in the transport industry. Fleet cards are normally involved by shipping companies as well as those that give delivery and ridesharing services.

Fleet cards will more often than not be issued by a single company. This means cardholders can utilize them at specific areas owned, operated, and franchised out by the issuer. Just like a standard payment card, fleet cards are embossed or laser-printed with subtleties including the card number, expiry date (if applicable), company name and, at times, the name of the authorized user. More up to date cards accompany a computer chip on the front alongside a magnetic stripe on the back so they can be utilized at point-of-sale (POS) terminals.

Businesses give these cards to their drivers and different employees who can utilize them rather than personal cards. This permits the card issuer to bill the company straightforwardly instead of the employee, who might need to file expense reports to be reimbursed sometime in the not too distant future. Card issuers generally issue companies a single bill that is itemized with individual charges by each authorized client. Just like charge cards, fleet cards are sans interest. That is on the grounds that companies are required to pay the outstanding account balance in full by the due date.

Fleet card balances must be paid in full by the due date.

Yet, not at all like a corporate credit card — which can be utilized for a broad set of authorized purchases like travel — fleet cards are intended to be utilized specifically for expenses connected with overseeing vehicles. Fleet cards have likewise been a target for new fintech arrangements in the payments industry with a number of fleet payment servicers improving around here of the transportation market.

Benefits of Fleet Cards

As verified above, companies might issue fleet cards to employees who are authorized to utilize company vehicles as opposed to have every employee utilize a personal card. This decreases the administrative expenses associated with keeping a reimbursement program to pay employees for the money they use on gas and vehicle maintenance. It additionally assists companies with exploring and oversee itemized expenses for their equipment assets.

Fleet cards generally give a level of oversight, permitting businesses to better deal with their expenses, as well as recognize cost-related trends. Business accountants may likewise utilize accounting analysis to adjust payment card limits and usage.

For instance, a delivery business might issue a fleet card to every one of its drivers to use to buy fuel and pay for maintenance. Since each fleet card is linked to an individual employee, the business can monitor how much every employee spends on his route and furthermore make gauges for budgeting. Assuming the company sees that a specific driver tops off their assigned vehicle a lot of habitually, it might make a descending adjustment on the limit of the assigned card.

Instances of Fleet Cards

By far most of fleet cards are issued by major oil and gas companies like Shell, ExxonMobil, Chevron, and Texaco. Companies that utilization their cards are generally limited to utilizing the areas of the card issuer.

Be that as it may, emerging payment advancements have been progressing to offer numerous new and imaginative arrangements across different industries with the transportation industry especially being a key target. Various service providers in transportation payments have been extending. Fleetcor is a fleet card payment service provider offering corporate fleet card products. A portion of its leading fleet card partnerships incorporate MasterCard, FleetCards USA, The Fuelcard Company and Fuelman. Fleetcor additionally assists with working on business accounting for transportation companies by banding together with businesses across the transportation industry for modern fleet payment arrangements.

Features

• Fleet cards permit businesses to oversee and budget for vehicle-related expenses without the extra issue of administrating exorbitant expense reports and reimbursements.
• Fleet cards permit businesses to oversee expenses associated with the vehicles they own and operate.
• Companies furnish employees who operate corporate vehicles with fleet cards for fuel purchases, vehicle maintenance, and repairs.
• Cards are generally utilized by shipping, delivery, and ridesharing companies.