Case Profile: Innovations in fleet card security

TABLE OF CONTENTS

CHAPTER 1 EXECUTIVE SUMMARY 3

This case profiles investigates which security services are valued by different fleet segments and advises on which of these services should be offered 3

Trends 3

Recommendations for card providers 3

Protection against fraud is a key requirement of a fuel card for customers, second only to high network acceptance 4

The more innovative security services largely involve the implementation of technical features and card limits/restrictions/parameters 5

Security is the area where most fuel card product innovation has occurred 5

CHAPTER 2 INTRODUCTION 13

This case profile assesses the demand for advanced fuel card security services and outlines how providers have responded to it 13

This case profile comprises four further sections 14

Customer context 14

Implementation study 14

Seizing the innovation 14

Recommendations 14

This case profile focuses on a number of fuel card security services/features, for which definitions can be found in the Appendix 15

Fuel card security services 15

Innovative fuel card security services 15

Fuel card security relevant services 15

This report is aimed at those needing a greater insight into customer requirements in the area of fuel card security features 16

Strategists 16

Product development teams 16

Marketing and service managers 16

CHAPTER 3 CUSTOMER CONTEXT 17

Customer context 17

Protection against fraud is a key requirement of a fuel card for customers, second only to high network acceptance 18

Following comprehensive network coverage, enhanced security is the core feature fleet managers across Western Europe expect from their fuel card provider 19

Protection from employee fraud is almost as much as a concern to fleet managers as theft from an external party 20

Analysis of the relationship between security features and fleet size reveals that exception reporting and vehicle analysis become more important the larger the fleet size 21

The value of �security relevant� management tools is most pronounced among larger fleets 22

Fraud is rated as the most significant factor preventing non-users of fuel cards from converting to this form of payment 23

CHAPTER 4 IMPLEMENTATION STUDY 24

Implementation study 24

The more innovative security services largely involve the implementation of technical features and card limits / restrictions / parameters 25

There is a high variance in the importance of more innovative security services by segment, but instant card stopping is highly valued by all 26

Large fleets value internet based security measures more than smaller fleets, partly because they are more informed of features such as online authorisation 27

Regional differences in the value placed on security features are less pronounced 28

Customers are generally satisfied with online implementation of all innovative security services 29

There are significant differences, by country, in how a transaction outside of the predefined limits should be handled 30

CHAPTER 5 SEIZING THE INNOVATION 31

Seizing the innovation 31

Security is the area where most fuel card product innovation has occurred 32

Technical security features such as velocity checking and online authorisation are now very much the norm 33

More innovative transaction parameters are slowly being added to the more established fuel value and product limits 34

Shell�s card has the greatest number of security features 35

Repsol is the only major provider which allows fuel card users to specify the days on which the card can be used 36

Customers are not always aware of the security features offered by their card 37

Arval compares poorly to the other suppliers in an analysis of instant online card stopping by provider 38

Repsol and Arval are the suppliers with a weak penetration of PIN services into their customer bases 39

UK suppliers lag behind in the implementation of chip and PIN 40

CHAPTER 6 RECOMMENDATIONS 42

There are four key recommendations for fuel card providers hoping to alleviate their customers� security fears 42

Recommendations 42

CHAPTER 7 APPENDIX 43

Glossary of terms 43

Research methodology 45

Related research 45

SPP writing team 46

LIST OF FIGURES

Figure 1: Card PIN codes are the third most important fuel card feature 19

Figure 2: PIN codes are demanded by fleet managers irrespective of fleet size 21

Figure 3: A fear of fraud can dissuade non-users from subscribing to this form of payment 23

Figure 4: The three services in the upper right quadrant are highly valued by particular market segments 26

Figure 5: There is a positive correlation between fleet size and the importance of instant online card stopping and online authorisation 27

Figure 6: Southern European fleet managers value innovative security features the most 28

Figure 7: The preferred method of implementation is online, although indifference is apparent, the smaller the fleet size 29

Figure 8: The majority of fleet managers in Southern European want transactions made outside of limits to be refused 30

Figure 9: Number of security services by provider 35

Figure 10: Number of limiting features by provider 36

Figure 11: Based on customers� understanding of what features their cards have, instant online card stopping and velocity checking are the only two services with 60%+ penetration 37

Figure 12: 46.2% of Arval respondents have instant online card stopping as a service 38

Figure 13: 5.4% of Arval respondents said they have a PIN code for their card when the supplier does not yet offer it 39

Figure 14: Those providers which offer 7 or more services score in excess of 3.75 out of 5 for the level of security against external theft 41

Figure 15: European Fleet Managers Research, 2004 � Survey sample 45