The Benefits of Combining Fuel Cards and AVI
Written by Leon Du Plessis, Key Account Manager at The ai Corporation | Original article published in Fleetpoint, may be found here
Navigating the complexities of fleet fuelling management presents fuel retailers with a crucial decision: embrace the established fleet and fuel card technology, or invest in the more recent, and often costly, vehicle recognition software. Both avenues offer distinct advantages and drawbacks, demanding a careful analysis of your specific operational needs.
Leon Du Plessis, Key Account Manager for MEA at The ai Corporation (ai) discusses the benefits to fleet operations of combining AVI with fuel cards.
Automated Vehicle Identification (AVI) technology, though present for three decades, caters to a niche market. It relies on Vehicle Identification Units (VIUs) installed within vehicles, enabling seamless, friction-free refuelling at participating fuel merchants. For fleets grappling with card fraud and control issues, AVI offers a compelling alternative. It ensures the correct vehicle is on the forecourt, the right fuel is dispensed, and, with Anti-Syphoning Devices (ASDs), deters fuel theft.
However, AVI’s effectiveness hinges on a robust network of participating merchants, all equipped with compatible technology. This necessitates intricate integrations with forecourt controllers to enable the AVI service provider to conduct authorization, repricing, and transaction clearing. Critically, AVI lacks interoperability, limiting users to the participating network and excluding purchases of fuel outside of the participating network as well as purchases normally associated with running a fleet such as oil, maintenance, and fines.
Conversely, fleet and fuel card service providers champion the security and versatility of EMV chip and PIN cards. They emphasise cost-effectiveness, widespread acceptance, and the ability to impose purchase restrictions. Yet, managing cards across multiple vehicles and drivers, with constant personnel and vehicle changes, can be a burden for fleet managers. They must balance this administrative load with ensuring operational efficiency, a challenge AVI aims to alleviate. Both systems claim to mitigate fraud and identify vehicles and drivers at the point of purchase.
The optimal solution, therefore, depends on your unique fleet operating model. A hybrid approach, integrating both AVI and card technology, presents a compelling and stronger customer value proposition, and capitalises on the strengths of both systems, mitigating their individual weaknesses.
For fleets with fixed routes and specific fuel discount requirements, particularly those in commercial road transport (CRT) or large corporations with complex operations, AVI eliminates the card management burden. Its enhanced security and precision are invaluable in these contexts. However, cards retain their utility for purchases beyond the AVI network, such as oil, tolls, and car washes.
Modern EMV chip and PIN cards extend this functionality to accommodation, licenses, and fines, consolidating all expenses onto a single payment method. This dual-system approach allows for secure fuel purchases via AVI, while facilitating other transactions through cards, all under a unified account and credit limit.
This integration offers redundancy and operational continuity. Should a card be lost or stolen, or an AVI unit malfunction, the alternative system ensures uninterrupted refuelling and purchasing. Furthermore, in situations where an AVI site is temporarily unavailable, card functionality can be instantly activated for fuel purchases, minimizing disruption.
Rather than viewing AVI and card technology as mutually exclusive, fleet customers and fuel retailers should recognise their complementary nature. By combining these solutions, you can create a more robust and versatile fleet solution, addressing the limitations of each individual approach and maximising operational and business efficiency. This integrated strategy provides a comprehensive solution for diverse fleet needs within the dynamic fleet & fuel ecosystem.