leet cards are proprietary charge cards used to purchase gasoline, diesel fuel and vehicle maintenance services. Issued to businesses and government agencies that have vehicular fleets, they enable organizations to predetermine credit limits, how often and during what periods charges can occur, and exactly what can be charged.

Fleet cards allow companies to track miles per gallon fluctuations, pattern discrepancies, product variances, excess fuel purchases and various transactions made to the account. They are essential to any fleet-owning business needing to regulate and maintain expenditures and adherence to internal policies.

As a merchant level salesperson, if you are serious about diversifying in the petroleum market, the ability to offer fleet card acceptance is imperative. To understand this market, you must be able to answer the following questions:

• Who issues fleet cards?
• Who can process these cards?
• Can I make money on these transactions?
• What steps are involved in setting up merchants to accept fleet cards?

The issuers

Key players in fleet card issuance include Wright Express, U.S. Bank Voyager Fleet Systems Inc. and Fleet One LLC.

Wright Express, located in South Portland, Maine, has a customer base of over 290,000 fleets with more than 4.3 million vehicles. Its cards are accepted at over 90% of retail fuel locations nationwide.

Houston-based Voyager provides fleet fueling and maintenance cards for more than 1.5 million vehicles. The Voyager-branded card is accepted at over 200,000 retail locations in all 50 states. It provides comprehensive fleet management information.

Fleet One, a Nashville, Tenn.-based provider of financial service solutions to companies with fleets of vehicles, is accepted at 4,600 merchant locations.

The processors

Who processes these transactions? Fleet card issuers do. Their authorization process is very similar to that of American Express Co. and Discover Financial Services LLC.

Merchants can be set up to dial directly to fleet card companies, or they can be referred to card companies for authorization by another processor's front end. Be sure to check with your ISO to see how its fleet card transactions are authorized and settled.

This is very important because merchants need to know how they will be paid. Will payment come directly from the fuel card company, or will the processor fund the transactions?

Some fleet cards require a direct dial for authorization and settlement. A separate terminal may be necessary.

In some cases the fleet card may be certified on only one terminal. They may be too challenging to implement through your processor. If so, merchants should go directly to the fuel card company for setup. Your role is to put the parties in touch.

Check your area's footprint. See who the active fuel card players are. Then build a relationship with them so the application process will be easier.

The setup

There is money to be made in this market. Some processors will pay a residual on Wright Express and Voyager transactions. As you get into this segment, find out if your ISO receives and pays residuals on these transactions.

Although it is nice to receive residuals, it is more important to get your merchants up and running. Lots of ISOs don't know how to set up fleet cards. In some instances, the only thing you may have to offer over the competition is the ability to enable your merchants to accept these cards. When you can do this, you gain accounts and the normal revenue that comes with them.

It may not be a bad trade-off for you. Being out on the street, up against competition is tough enough. Having another ancillary service to offer may give you a competitive edge.

Each company has its own applications and underwriting procedures. You can obtain some of the applications from your ISO. You'll have to get the others directly from the fleet card companies. Be sure to know what terminals are certified for fleet cards with the processor you use, and whether separate equipment is needed.

For most fleet card programs, a PIN pad is required so drivers can enter employer-issued PINs. This allows every purchase to be tracked. The terminal will prompt for other information such as product codes, vehicle numbers and mileage. Some education may be required to get the merchant up and going smoothly.

The legwork

As you get more involved in the petroleum market, you will find many players in the fleet card arena. Stay informed about the ones that reign in your region. Also, be familiar to the national issuers for when you have large deals that have a national footprint.

Take time to ask how your ISO implements these products. Start talking about fleet cards when you're out prospecting and networking.

Don't forget, companies that offer maintenance services are good candidates for fleet card acceptance. Approach glass companies, oil and lube centers, tire dealers, service stations, and any other merchant who may offer a service a fleet of vehicles could use. The effort may just land you a new merchant account.

I hope the last few articles on petroleum have answered some of your questions about the independent petroleum market. Partner with the right ISO, one that can support your sales efforts in this market.

Ask lots of questions, and be sure your partner is competent in this field. Do what you do best: sell, sell, sell. Let your ISO do the hard work.

Dee Karawadra is the founder, Chief Executive Officer and President of Impact PaySystem based in Memphis, Tenn. He and his team have a wealth of knowledge on the merchant services industry, with a niche in the petroleum market. Dee's experience on the street as an agent has guided him in laying a foundation for an agent program that is both straightforward and lucrative for his agents. Contact him at 877-251-0778 or dee@impactpaysystem.com.