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The UK's largest fuel card supplier Arval will start to introduce a chip and pin system from the second half of 2010.
The technology will be introduced across the whole of Arval's fuel card range next year in order to offer "a range of security and optional fleet service benefits for customers", said an Arval spokesman.
Arval said the main motivation for the move is the convenience and extra services it would offer. It would enable drivers to fill up at petrol stations that allow payment at the pump with a chip and pin card.
Arval added it will enable fleets to have more control over what can be paid for on the card.
Although the technology would boost services offered, it would also help increase the card's security and help combat fraudulent use.
In September a conman used an Arval fuel card to pay for £3000 worth of fuel, which he then sold on at a discounted rate.
An Arval spokesman said: "We are aware that fraudulent activity involving our fuel card has taken place in the Birmingham area but are unable to comment on the specific case other than to say that we are working closely with the police to support them with their investigations."
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