Why Fleet Card Payments Need EMV Chip Technology & Testing Tools

In the fast-evolving world of retail payments, fleet cards and EMV testing might not always get the visibility they should, but both are essential components in maintaining the overall health and security of the payment industry.

According to a Mercator Advisory Group report, fleet card purchases in the US alone hit $93.5 billion in 2023, accounting for 10% of all B2B card spending.

Given the sheer size of the fleet card segment, all fuel retailers and C-Store operations that accept fleet cards must modernize their point-of-sale (POS) systems to support EMV chip transactions. This is not just a technological upgrade; it’s a critical step in reducing fraud and ensuring seamless transactions for businesses relying on fleet services.

Understanding Fleet Cards: Closed Loop vs. Open Loop

Fleet cards are a specialized payment tool used primarily for fuel and vehicle-related expenses. Unlike standard consumer credit cards, fleet cards often operate on either closed-loop or open-loop networks, each with unique capabilities and requirements:

Cards on closed-loop networks, such as WEX and Voyager, are highly specialized. They capture detailed, transaction-specific information, including driver identity, odometer readings, and vehicle-specific data. This granular data helps businesses manage fuel expenses and monitor fleet operations efficiently.

Open-loop or universal fleet cards, often Visa or Mastercard branded, operate on the same payment rails as consumer credit cards. While they lack the detailed transaction data of closed-loop systems, they offer broader acceptance and versatility, making them suitable for a variety of business needs.

The Push for EMV Fleet Card Adoption

For retailers who support fleet card payments, particularly at the pump or in convenience stores, EMV should be a priority. EMV chip technology is widely recognized for its ability to reduce counterfeit card fraud. 

The transition to EMV for fleet cards mirrors the standards set by EMVCo for consumer cards but with variations depending on network requirements for Level 3 (L3) certification (you can learn more about the different levels of EMV testing in our blog - Navigating the EMV Testing and Certification Process).

Why is EMV Certification Important?

Fraud prevention remains a significant driver for EMV adoption. For example, a Chevron report revealed a sharp rise in global fraud losses tied to magnetic stripe fleet cards, increasing from $21.8 billion in 2015 to $31 billion in 2020. The primary culprit? Credit card skimming and cloning. EMV chip technology effectively combats these threats by adding layers of encryption and dynamic data verification to payment transactions.

To accept EMV fleet cards, merchants must undergo rigorous testing and certification processes. Level 3 certification ensures compliance with network-specific requirements, whether for closed-loop or open-loop systems. These tests verify that POS systems handle transactions accurately and securely, reducing the risk of data breaches and operational errors.

What Merchants Should Know

Fuel and C-Store retailers planning to support EMV fleet cards must prioritize two key aspects of their business operations:

Evaluate your POS systems to confirm compatibility with EMV chip technology. Many legacy systems built for magnetic stripe cards require significant upgrades to meet the demands of EMV chip processing.

Implement testing solutions tailored for both consumer and fleet EMV cards. These solutions should address the specific testing requirements of each network to streamline certification and ensure compliance.

The Road Ahead: Making EMV a Priority

Fleet cards represent a vital payment tool for businesses managing vehicles, fuel, and logistics. As fraud risks rise and payment technologies evolve, the shift to EMV fleet cards is no longer optional - it’s a necessity. By adopting EMV, fuel retailers merchants not only protect their businesses, they can deliver seamless and secure payment experiences to their fleet customers.

With a team of experts who have significant experience with EMV chip technology, Paragon Application Systems has been providing innovative payment testing solutions to the payment industry for more than 30 years. 

Our Web FASTest platform includes full EMV contact and contactless testing capabilities, including full ARQC and ARPC processing. The simulator can be used to initiate EMV messages as if it is an acquiring network or respond to chip card messages by behaving like an issuer host.

Web FASTest users get full access to EMV tag data and can calculate cryptograms with built-in encryption logic. Processing traces provide complete details of all the unique EMV processing that takes place on each message. Individual message fields can be edited down to the bit level, either setting specific values or assigning dynamic values using built-in processors.

Whether you are an independent fuel station or a multi-location operator, investing in the right technology and testing solutions today will future-proof your operations against the challenges of tomorrow. In the payments industry, overlooking fleet cards and EMV testing is no longer an option; it’s time to make them a central focus of your operational roadmap.

Are you interested in learning more about how Paragon Web FASTest can help support EMV testing for Fleet cards? Please reach out today and request a consultation with one of our payment industry specialists.