By Maura Keller
In Part 1, we discussed some of the history of the modern fleet card, technological advances and the appeal of such programs. In Part 2 we look at embracing and optimizing the successful programs that are available today, what’s on the horizon and a look at safety and security in fleet card programs.
Embracing Successful Programs
S. David Padgett, sales and marketing executive of Davison Fuels launched the Fuel Masters Fleet Card on the U.S. Bank Voyager Network a little over two years ago. “We did it because we had spoken to others in the industry who confirmed Voyager’s reputation in the marketplace for being a quality partner to wholesale petroleum distributors like us,” Padgett said. “The Voyager Network has nationwide acceptance and excellent online tools to help our customers manage their fleet programs.”
Padgett said the main advantage of a co-branding relationship is that it allows you to build your own brand with the help of another well-respected company. Davison Fuels has experience with this kind of arrangement.
“For 25 years we have sold our ‘Pride’ brand of quality lubricants, which has been very successful,” Padgett said. “So when we decided it was time to launch the Fuel Masters Fleet Card, it only made sense to take a similar approach, and it only made sense to go with Voyager, one of the most established and respected fleet networks in the marketplace.”
Co-branded fleet cards are those cards issued by the major fleet card processing companies such as WEX, Fleetcor, or Voyager. As Dyer explains, the cards are programmatically the same as the issuer’s card, and the carry the issuer’s logo on the front. However they are co-branded with the marketing company’s logo as well.
“The marketing company is paid a commission in most cases for marketing the card,” Dyer said. “The card typically works in every location where the card is accepted. Therefore a petroleum company wanting to issue a card through one of these major processors, and have that card only work at their own sites, would not want to issue a co-branded card.” Instead they would issue a “private label” card through the major processor. It’s the same card programmatically, however it is restricted to the designated locations and doesn’t carry the card issuers logo on the card.
Whether co-branding or going solo, industry experts agree that creating and implementing the proprietary card is the easiest part. Where most proprietary fleet card issuers fail is in successfully creating and following though on a marketing campaign that includes the hiring and training of effective salespeople.
“The old adage of ‘build it and they will come’ doesn’t apply,” Dyer said. “Also, a common mistake is the failure to recognize the importance of having a quality billing system capable of delivering the best value to the fleet customer. Billing systems are not all created equal when it comes to managing a proprietary fleet card, and they can spell the difference between success and failure.
Padgett said one of the U.S. Bank Voyager Network’s biggest strengths is its internet-based program management tool, which they call Fleet Commander Online.
“It’s a very user-friendly portal that helps end users in many different ways to organize their cards: setting up accounts, deleting them, setting up security, and accessing data that gives them what they need to manage their business,” Padgett said. “Our customers have really benefitted from that.”
But be careful, Padgett stresses that if you partner with an organization that does not live up to the quality and service expectations your customers are used to having from you, you can do great damage to your brand.
“Your name is on the front, you’re the one they blame,” Padgett said. “You need to chose your partners carefully. Our choice of U.S. Bank Voyager has been fantastic. They hold us and all of their partners to high standards for creditworthiness and other key criteria. We were impressed with that.”
Prior to jumping on the proverbial private fleet card program, you should consider if it can help you build your brand, and that the partner has the same high standards that you do.
“For us, teaming up with U.S. Bank and the Voyager Network is paying off,” Padgett said. “We started from zero and are now doing millions in volume. It has pleasantly exceeded our growth expectations for two years running and we look forward to keeping it growing.”
On the Horizon
Indeed, the future is bright for proprietary cards. Here’s why: “As the industry continues to consolidate towards monopoly status, which I think we are already there in a couple of instances, the desire for fleets to have alternatives is going to increase,” Dyer said. “The proprietary card issuers will be in a great position to capitalize on this.” Dyer’s prediction is that fees to the end user are going to increase through those monopolizing the industry. This, in turn, will drive demand back to the proprietary providers.
“There’s a point when big becomes too big,” Dyer said. “I believe we’ve reached that point in our industry.”
Lindsay also points out that the technology around card programs is constantly advancing.
“We’re also currently rolling out pump shut off technology to enforce adherence to fleet policy spending limits,” Lindsay said. “It leaves nothing to chance: drivers cannot exceed established spending thresholds when purchasing fuel, maintenance or additives at participating locations. This year U.S. Bank updated its mobile app with a routing and price optimization tool to help drivers find the lowest prices on a given route.”
This will give drivers and fleet managers a third way to locate merchants-the others being a web-based merchant locator and, of course, 24/7 access to our customer service representatives.
“Mobile solutions in general are the next major evolution in the fleet space,” Lindsay said. “Some oil companies already use them for their rewards programs. Our own product development is focused on how to incorporate more of our solutions into the so-called mobile wallet.”
Finally, EMV is on the way in the U.S. to provide an extra level of security for cardholders. EMV (Europay Visa Mastercard) cards are imbedded with a computer chip that generates a unique code for every transaction, thus greatly reducing fraud risk.
Side Note…
Safety & Security in Fleet Card Programs
There are several best practices that U.S. Bank Voyager recommends managers and drivers do to ensure success from an efficiency and security standpoint.
Fleet Managers should:
• Review transaction reports frequently, between monthly billing statements
• Be mindful of how card data is stored and destroyed
• Keep driver account records current
• Ask for and schedule fraud control reports from your card provider to verify that appropriate fraud controls are in place and that adjustments are being made as appropriate
• If a driver leaves the organization for any reason, ensure the card is returned to the fleet manager
Drivers should:
• Store cards in a safe and secure location – never leave them out in the open
• Store driver ID/contract information in a separate secure location – never in the same wallet as the card
• Report lost or stolen cards immediately
• Report any questionable transactions to fleet managers immediately
• Never let an unauthorized person use the card
• Never use fuel pumps that appear to have been tampered with
• Watch cards carefully during in-store transactions and ensure they are returned promptly
