To help minimize company fuel card abuse and other types of fraud, many fuel card companies offer fuel card purchase controls to restrict a card’s ability to purchase fuel. Setting restrictions that are right for the drivers and vehicles that make up your fleet can be tricky. If controls are too restrictive, your drivers may not be able to buy the fuel they need. If they are too lax, then the company is vulnerable to fraud. So, how can you determine the fuel card purchase controls that are right for your business?
Know Which Fuel Card Purchase Controls are Available
To find the fleet card controls that are best for your business, it is important to first understand what type of controls can be placed on company fuel cards. Most fuel card services have the following restrictions available:
- Gallons or dollars per transaction
- Gallons or dollars per day, week, or month
- Transaction per day
- Authorized fueling times and days
- Fuel only or fuel and maintenance
- Driver PINs or Driver IDs
While not widely available, some cards (like OTR fleet cards and CFN fuel cards) can restrict the fuel or product type that cards can purchase. Product type restrictions are not only valuable for their ability to prevent fraud, but also prevent drivers from inadvertently putting the wrong type of fuel into vehicles or equipment.
Setting Up PINs and Driver IDs
When drivers use their card, they will first be asked to enter a PIN or driver ID. This 4-6 digit code verifies the driver’s identity and helps to ensure that only your authorized employees use your card.
While they are mostly similar, there is a critical difference in card setup that distinguishes PINs from driver IDs. PINs are used with driver cards, while driver IDs are used with vehicle cards. Driver cards work with one and only one PIN, while vehicle cards draw from a pool of driver IDs. By using driver IDs vehicle cards allow you track both the vehicle and driver for every transaction, information that could be critical if fraud occurs.
When you set up your PINs or Driver IDs you want them to be easy to remember, but not easy to guess. So, while the PIN 1234 may be the easiest code for a driver to remember, it is also one of the first codes someone that is not authorized to use the card would guess. On the other hand, a series of random numbers may be the hardest code for someone to guess, but would be difficult for a driver to remember.
A solution to this problem is to use numbers that hold meaning to that driver, and that driver alone. This could be the last 4 digits of the social security number, an designated employee ID number. Regardless of the number you choose, it is important that the code is not shared with others and is never written on the card. This number is the first line of defense between you and fraudulent use and should be kept secure.
Customize Fuel Card Controls by Driver and/or Vehicle
Once you understand the restrictions available to you, you can start applying these restrictions to your cards. If all your drivers and/or vehicles have similar needs then it is ok to create one fuel card restriction template and use it for all your cards.
However, if you have different types of vehicles or if your employees have different fueling needs it is highly recommended that you customize your fleet card purchase controls so that they match the individual needs of each driver or vehicle. A pickup doesn’t need as much fuel as a box truck, which doesn’t need as much fuel as a semi. Fleet card controls are fully customizable so only give drivers as much fuel as they need.
Avoid Overly Strict Fleet Card Limits
You might think setting the strictest fleet card limits possible would be best for reducing company fuel card abuse and fraud. While they might be best for stopping fraud, overly strict limits can also stop your drivers from getting the fuel they need.
In these cases, an authorized company employee would need to contact the fuel card company and approve changes to limits before any changes can be made. This issue can be mitigated through the effective use on online tools, but, depending on the circumstances, overly strict card restrictions can still delay drivers significantly.
Drivers that are unable to purchase fuel because of overly strict fuel card purchas controls might have to use alternative forms of payment to avoid delays. This prevents cards from collecting transaction data, leading to problems with fuel card alerts and reports. It also exposes the company to risk, as it bypasses your cards’ ability to restrict unauthorized purchases.
Don’t Set Limits Too High
With the problems that can arise from overly strict card controls, it might seem better to set card limits far above a driver’s or vehicle’s expected fuel usage to prevent any unnecessary delays. However, overly lax fuel card restrictions are as bad, if not worse, than overly strict limits.
When card controls are set to too high, unauthorized purchases cannot be effectively prevented. Furthermore, if fraud occurs, transactions can continue for an extended period, allowing unauthorized purchase totals to add up to large sums before they can be detected and stopped.
How to Set Fuel Card Purchase Controls That Are Right for Your Business
The key to using fleet card controls effectively is setting limits that match your fleet’s needs as closely as possible. To do this ask yourself this series of questions so that you can properly frame your cards expected usage around your available fuel card controls.
- What type of vehicle or equipment will the card be used for?
- How much fuel do you expect this vehicle or equipment to use?
- When will drivers need to use their cards?
What type of vehicle or equipment will the card be used for?
First, consider the type of vehicle or equipment that a card will be used for. If your company fuel cards include restrictions based on fuel type or product, only include the products that each vehicle or piece of equipment uses. Dollars or gallons per transaction limits should be set to accommodate the entire fuel tank so that drivers are capped at the maximum amount of fuel they could use at one time.
If you opt to use driver cards, consider all of the vehicles and pieces of equipment that a card will be used for. Make sure to set your restrictions so that they accomodate the largest piece of equipment.
How much fuel do you expect this vehicle or equipment to use?
Next, consider how much fuel each vehicle or piece of equipment is uses. Large trucks driving long distances likely need high daily, weekly, and/or monthly limits. Smaller vehicles that travel locally should have significantly lower daily, weekly, and/or monthly limits. Be sure to include reefer units or other equipment that needs fuel when you calculate a card’s expected fuel use.
Also consider how many transactions per day a vehicle and/or piece of equipment requires. If you use driver cards, think about how often drivers need to fuel the vehicles and equipment they are responsible for. It is best to allow cards one extra transaction above this figure per day. This is because fuel card denials can count against a card’s daily transaction limit. If there is no buffer to accommodate this, there can be issues when a driver tries to use their final daily transaction.
When will drivers need to use their cards?
Finally, consider when drivers will need access to their card. While it is not always the case, time and day fleet card restrictions should usually match company hours. This helps prevent employees from using company cards for personal vehicles.
Alerts Offer a Secure Solution When Fleet Card Controls are Too Restrictive
There are a number of situations where fuel card controls are too restrictive and would prohibitively limit drivers’ ability to purchase fuel. In these cases, it is best to relax your card controls and use fuel card alerts to help protect your business from fraud.
For example, some companies have employees that need 24-hour access in case of emergencies. In these situations, time and day restrictions would be prohibitively restrictive. Instead, an alert that sends an email whenever a transaction is made outside of business hours allows drivers to get the fuel they need, while still keeping you informed of any irregular transactions.
Changing Your Fuel Card Limits
When you first set your fuel card purchase controls you may have anticipated your company fleet card use to be higher or lower than what your fleet uses. In either case, you can adjust your fleet card controls so that they better match your fleet’s needs. You should also adjust your fleet card restrictions if the fueling needs of your fleet changes so that drivers can always get the fuel the need and you are always protected against fraud.
Adjustments can be temporary, or permanent and should be regularly reviewed to ensure they accurately reflect your fleet’s needs. Some fuel card services offer online tools that allow you to view and adjust your cards’ restrictions at any time, making this process quick and easy.
The purchase controls you establish should fit the unique needs of your business. This starts by understanding the controls available on your company fuel card, then asking key questions about how you expect cards to be used. Alerts can also help notify you of suspicious transactions, but it may be more important to establish a fuel card policy with you drivers. This makes drivers aware of their expectations and the controls on the cards, stopping fraud before it can be attempted.
Topic: Fleet Fuel Cards