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The start point for the best source of fleet information |
It's the turn of fuel cards to fall under the spotlight as BusinessCar continues its '10 questions' series looking at various areas of the fleet industry. Rachel Burgess asks three fuel card experts to provide the answers
The main advantage across all fuel cards is the administration benefit they offer, according to The Fuelcard Company marketing director Jakes De Kock.
"Fuel cards tie all fuelling transactions into one place - a detailed VAT-approved invoice which is itemised and shows individual transaction information i.e. date, time, location, quantity.
"This offers companies the ability to keep track of their fuel spend easily and eliminates any issues with lost receipts and unrecorded transactions."
Some fuel cards offer a fixed weekly rate for fuel, which will typically save companies around 3p per litre, so there is a cost saving on fuel as well as reduced administration time.
Using fuel cards also enables companies to reimburse the exact amount that drivers spend on fuel, meaning they don't overpay expenses, while at the same time drivers aren't left out of pocket, says Meryl Gilbert, head of business development - fuel at Arval.
Some fuel cards operate through a restricted network of fuel sites, normally constrained to a particular brand of fuel, which means drivers have to travel out of their way to find a forecourt where they can refuel. This wastes time, fuel and money so it is important to select a fuel card provider with a comprehensive network, says Gilbert.
The Fuelcard Company offers accounts to trading businesses that spend more than £300 per month on fuel, so if your firm forks out less than this, there may be limitations.
Fuel cards allow fleets to accurately measure their carbon footprint which is essential in understanding current CO2 emissions, setting reduction targets and measuring them, resulting in a greener fleet, says Gilbert. This can also mean increasing fuel efficiency.
De Kock adds: "Our customers can receive reports detailing the accurate mpg of each fleet vehicle, allowing the company to highlight less efficient drivers/vehicles and improve fuel economy within their business."
The Fuelcard Company charges £6 per card per year for a standard account. This covers the printing costs for the cars and the setting up of the fuel card account. Gilbert says the cost of a fuel card varies from product to product but there is often an annual card fee attached. All the companies BusinessCar spoke to insisted whatever the charges, they provide good value compared to the cost savings.
BP's UK fuel cards manager Ranjeev Baines says the company charges a "small card fee", but added "the savings you make on fuel and other benefits offset this cost".
Payment terms are shorter than credit cards at The Fuelcard Company, says De Kock.
"Standard payments terms are an invoice every week with the payment for this taken by direct debit a week later. Fortnightly billing is available pending sufficient credit insurance.
He adds: "Having weekly billing can help companies with cash flow as the monthly cost of fuel is split out in smaller bills."
BP's Baines agrees that payment terms tend to be slightly shorter then credit cards, but Arval's Gilbert says it all depends on the customer: "Fuel cards are not credit cards and are not governed by the same regulations. Therefore, it is standard practice in the business-to-business environment that payment terms vary depending on a customer's business needs."
Some fleets only want their drivers to buy fuel and some are happy to allow purchase of anything on the forecourt including oil, carwash and shop products. This is entirely down to customer preference and fuel card companies allow businesses to set purchase options when setting up a new card.
"Fuel cards provide the flexibility that drivers need to effectively do their jobs, which sometimes means, allowing them to fill up when and where they need to," says Gilbert.
"However, our reporting does identify any suspicious behaviour such as drivers refuelling late at night or more regularly than expected."
BP customers can use BP Alerts, a system that allows fleet managers to set up trigger alerts on fuel card usage. For example, a fleet manager might want to be warned straight away when cards are used at the weekend, a large amount of fuel is bought or when fuel outside of a specific area is purchased.
"The advantage is early fraud detection and more control and relevant information for the fleet manager," says Baines.
Aside from the reporting discussed in the previous question, the easiest way to do this is to specify the vehicle registration number on the fuel card. This needs to match the registration number of the vehicle being filled up or the payment will be refused at the petrol station.
Chip and pin is definitely the next step, says De Kock.
"Most networks are working on this at the moment and rolling out across all their stations. Once this is in place and the technology within the petrol stations becomes more advanced, this will open up the ability to place transaction limits on each card and set restrictions by time and date."
Arval will be moving its fuel cards to chip and pin at the end of this year.
Gilbert says: "The move will deliver a range of security and optional fleet service benefits for our customers, further strengthening our card offer."
The types of firms using fuel cards is changing. Traditionally, fuel cards were marketed to haulage and courier companies and other similar industries. But as more and more firms learn about the benefits of fuel cards, customers are diversifying, says De Kock. Other changes will include broader product offerings, for example the ability to pay for tolls and other services using fuel cards, allowing companies to tie-in fleet expenditure with their fuel spend on one account.
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