A fleet card is a specialized payment tool designed to help businesses manage and control fuel costs efficiently. It allows people to purchase fuel without using cash, checks, or personal credit cards, while providing fleet managers with enhanced oversight. These cards streamline operations by consolidating transactions, reducing administrative burdens, and offering detailed tracking on fuel usage.

Understanding how fleet cards work involves examining two key aspects: authorized users and where the card is accepted. These factors determine how efficiently a business can leverage a fleet card to optimize its fuel management strategy.

Where the Card Is Accepted: Closed Loop vs. Open Loop Systems

Another crucial consideration when choosing a fleet card is where it can be used. There are two main types of fleet card networks: closed loop and open loop.

Closed Loop Fleet CardsClosed loop fuel cards are limited to a specific network of gas stations. This means card users must ensure they refuel only at participating locations, which may not always be the most convenient or cost-effective choice. Many legacy fleet payment solutions fall into this category, requiring businesses to carefully plan routes around designated fuel stations.While closed loop systems sometimes offer discounts on fuel transactions within their network, they can create inefficiencies by forcing drivers to go out of their way to find an approved station. This can lead to unnecessary detours, delays, and higher fuel consumption—ultimately increasing operational costs.
Open Loop Fleet CardsOpen loop fleet cards, such as those backed by Visa, offer much greater flexibility. They’re are accepted at nearly all fuel stations, allowing card users to refuel at the most cost-effective and convenient locations without being restricted to a specific network.The ability to stop anywhere along a route for fuel helps businesses save money by allowing the team to choose the lowest-priced station nearby. It also improves efficiency by eliminating unnecessary detours, reducing downtime, and keeping employees focused on completing their deliveries or service calls.Additionally, they often provide enhanced security features, such as live tracking and consumption controls, giving businesses better oversight of fuel costs.

Authorized Users: How Fleet Cards Are Assigned

Fleet cards can be assigned in different ways depending on how a business wants to manage access and track transactions. There are two primary methods of authorization:

Vehicle-Specific Cards with Driver PINsOne common approach is to assign a fleet card to a specific car or truck rather than an individual. The vehicle’s name or ID is typically embossed on the card, and any person using that car or truck must enter a unique PIN at the fuel pump to complete a transaction. This method ensures that all fuel purchases are tied to the car or truck, rather than a particular employee, making it easier to track fuel consumption and identify any unusual patterns.Many businesses favor this approach because it allows different team members to use the same car or truck while maintaining accountability. Since the fleet manager can see which driver used a particular card at any specific moment, it becomes easier to monitor fuel usage, enforce limits, and detect potential fraud.
Flexible Driver-Based Fleet CardsIn contrast, some businesses prefer a more flexible system where any employee can use any fleet card. Employees would check into a card and vehicle through a quick mobile verification system, such as sending a text message before refueling.This eliminates the need for PINs at the pump, reducing the risk of forgotten credentials or unauthorized usage. It also allows fleet managers to track who is driving which car or truck at any given time, providing instant visibility into fleet operations.

Each authorization method has its advantages, and the best choice depends on the size of the fleet, the number of employees, and the company’s preferred level of security and oversight.

Why Fleet Cards Are Essential for Businesses

Fleet cards play a vital role in simplifying fuel management for businesses of all sizes. They offer:

Better Financial Control – Businesses can monitor and manage fuel costs more effectively by setting purchasing limits, tracking transactions in real time, and receiving itemized reports.
Reduced Administrative Work – Instead of handling piles of fuel receipts and reimbursement claims, businesses receive a single consolidated bill that simplifies accounting and tax reporting.
Fraud Prevention – Modern fleet cards come with security features like PIN verification, instant alerts for suspicious transactions, and even instant card-locking capabilities to prevent unauthorized use.
Increased Driver Efficiency – With an open loop fleet card, drivers no longer need to waste valuable minutes searching for an approved fuel station, reducing stress and allowing them to focus on their work.

By selecting the right fleet card, businesses can significantly improve operational efficiency, reduce costs, and gain better oversight. Whether operating a small fleet or a large enterprise, the benefits of a well-chosen fleet card can have a direct impact on a company’s bottom line.