How to Properly Use a Fleet Card for Your Company

A fleet card is a specialized payment tool for businesses to manage vehicle expenses, primarily fuel and maintenance. It offers streamlined financial oversight, consolidating transactions and providing detailed usage insights. Unlike standard credit cards, fleet cards provide enhanced control and reporting tailored for fleet operations, reducing administrative burdens and improving expense management.

Setting Up Your Fleet Card for Use

After receiving fleet cards, the initial setup involves activating them within the provider’s management system. This requires information such as the card number, a unique activation code (if applicable), and company identification details.

Individual driver and vehicle information is necessary for assignment and tracking. Businesses input employee names, unique driver IDs, and vehicle identification numbers (VINs) into the system. Linking cards to specific drivers or vehicles is fundamental for tracking and reporting accuracy. Activation can be completed through an online portal or a dedicated phone service.

Once activated, configuring purchase controls and restrictions is important for responsible spending. Fleet managers can set spending limits per transaction, daily, or monthly, aligning with company budgets. Controls extend to specifying allowed fuel types (e.g., regular unleaded) and restricting purchases to certain merchant categories like fuel stations or authorized maintenance centers. Time-of-day or day-of-week restrictions can also prevent unauthorized use outside operational hours.

Completing Transactions with Your Fleet Card

Using a fleet card at a fuel pump involves a specific sequence for proper recording and authorization. Drivers swipe or insert the card at the pump terminal, similar to a standard credit card. A PIN must be entered to authenticate the user and proceed. Systems then prompt for additional data, such as the vehicle’s odometer reading and a unique driver or vehicle identification number. Accurate odometer readings are important for calculating fuel efficiency and mileage.

Once information is entered, the driver selects the fuel type. The card’s pre-set controls, configured during setup, dictate whether the transaction is approved or declined. For instance, a card may decline if it purchases an unauthorized fuel type or exceeds a daily spending limit. Understanding these immediate responses is important for drivers, as declines indicate a policy violation or an attempt outside permitted parameters.

Beyond fuel, fleet cards can also be used for vehicle maintenance or repairs at service centers. When presenting the card, the service provider may need to contact the fleet card company for authorization prior to performing any work. Drivers may need to provide their driver ID and odometer reading for authorization. If a fleet card is lost, stolen, or damaged, report it immediately to the fleet manager or supervisor. Prompt reporting allows for immediate deactivation, preventing unauthorized charges and mitigating financial exposure.

Tracking and Reviewing Fleet Card Activity

Monitoring fleet card activity is a continuous process, leveraging detailed system data. Businesses access comprehensive transaction data via their provider’s online management portal or dashboard. This platform provides a transparent view of all purchases, including date, time, location, fuel volume, and cost.

The management portal allows generation of various reports, offering insights into fleet operations. Common reports include fuel consumption, maintenance spending, and driver activity logs. These reports can be customized to analyze spending patterns, track mileage, and calculate cost-per-mile, aiding in identifying inefficiencies. This reporting simplifies expense substantiation for tax purposes, as the IRS requires adequate records for business deductions.

Interpreting usage data helps businesses make informed decisions about resource allocation and policy enforcement. For example, anomalies in fuel consumption might indicate a need for maintenance or a review of driver behavior. Fleet card systems also offer automated alerts for unusual activity or policy violations. Alerts can notify managers of transactions outside normal business hours, unauthorized product purchases, or spending exceeding predefined limits.

Reconciliation of fleet card statements with internal financial records is simplified by consolidated billing. This streamlines accounting by reducing manual data entry and managing numerous receipts. Regularly reviewing data and alerts enables businesses to maintain control over expenditures and optimize fleet operational efficiency.