Fleet FAQ? Fuel Management

Q. Is security a big issue in the fuel business?

January 16, 2018

by - Also by this author

A. Absolutely, and fuel cards are a key control.

Most what open-loop networks do is controlled by the Merchant Category Code. So, for example, if Walmart sold you fuel, the MCC code is going to be “convenience/chain.” So a vehicle manager would have to say: “I want to allow that.” But can drivers then purchase products inside, vs. at the station?

There are ways open-loop networks can control that, but it’s not as clean cut as the product-type controls on a closed-loop network, where everything is restricted by the product that’s bought. So even though service locations and fueling stations will have a convenience store attached to them, if a fleet says, “I only want driver to buy fuel,” the drivers are only going to get fuel if they are on a closed-loop network. With an open-loop network, you can’t be sure.

Author Bio

Bernie Kavanagh

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Senior Vice President and General Manager

A 27-year fleet professional, Bernie Kavanagh currently serves as Senior Vice President and General Manager of Large Fleet at WEX Inc. He joined the company in 1996 and his career has been a steady progression of increased sales and marketing responsibility. Kavanagh serves on industry related boards and is a frequent speaker at payment industry conferences focusing on fuel trends and technology in the payment space. He earned a bachelor’s degree from the College of New Jersey and is an active member of NAFA, AFLA, NCSFA and AALA. Prior to joining WEX, Kavanagh held a number of roles with Enterprise Rent-A-Car and Enterprise Fleet Management.

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