🇺🇸United States

Fuel card fraud, theft, and unauthorized use at gas stations

3 verified sources

Definition

Fraud and abuse on fleet/commercial fuel cards—such as stolen cards, skimming, collusion between drivers and station staff, and misuse for non‑fuel purchases—create direct chargebacks and losses for fuel retailers and card issuers. The fuel retailing industry is specifically identified as heavily impacted by card fraud and theft at the pump.

Key Findings

  • Financial Impact: A major payments provider notes that credit card fraud and theft have “plagued the fuel retailing industry,” requiring investments in EMV, fraud controls, and risk management.[7] Industry data outside these exact articles typically show card‑present fuel fraud running in the basis‑points range of volume; for a retailer with $100M in annual fleet/commercial card volume, even 10 bps equals $100,000/year in fraud losses and related write‑offs.
  • Frequency: Daily
  • Root Cause: High fuel prices, unattended pay‑at‑pump devices, historically slower EMV adoption at pumps, and broad acceptance of fleet/commercial cards make fuel sites attractive for card fraud and for drivers to attempt unauthorized purchases (e.g., shop goods, fuel for personal vehicles) on commercial accounts.[3][7][8]

Why This Matters

This pain point represents a significant opportunity for B2B solutions targeting Retail Gasoline.

Affected Stakeholders

CFO, Loss Prevention Manager, Fraud/Risk Manager, Station Manager, Fleet Card Program Manager

Deep Analysis (Premium)

Financial Impact

$10,000-$35,000 annually (chargebacks, verification delays, platform disputes) • $10,000-$40,000 annually (after-hours fraud spike, unmonitored transactions) • $10,000-$40,000 annually (chargebacks + audit labor + disputed settlement holds)

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Current Workarounds

Dispatcher manually reviews fuel card transactions in spreadsheet; cross-references with delivery routes on paper manifest or WhatsApp driver messages; reactive investigation after driver complaint or discrepancy • Excel spreadsheet reconciliation of receipts vs. card statements; manual email notifications from fuel card provider; memory-based driver pattern tracking • Government/municipal Fuel Delivery Coordinator maintains dual records: official fuel card provider statements + manual audit log in Excel/Google Sheets; investigates discrepancies post-hoc via phone/email with fuel card issuer; escalates to Finance for dispute resolution (delays 4–8 weeks)

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Sub‑optimal routing and fee structures on fleet/commercial card transactions

Typically 3–10 bps of card volume; for a retailer doing $50M/year of fleet & commercial card sales, this equates to ~$150,000–$500,000/year in avoidable fees.

Excessive processing and integration costs for fleet/commercial card programs

Mid‑sized fuel retailers report six‑figure implementation and integration spends and ongoing support/maintenance in the low six figures annually for legacy or fragmented systems; modernized platforms in case studies recoup these amounts via lower IT and processing overhead.[2][6]

Cost of poor transaction quality: fleet card declines and rework

A fleet card provider notes that wrong PIN entries, card control mis‑configurations, and station authorization limits are common and recurring decline causes, each failed attempt consuming transaction limits and time.[3] For a station handling thousands of fleet/commercial card swipes monthly, lost sales and staff time can easily reach several thousand dollars per month.

Delayed settlement and collections on commercial fuel accounts

Industry solution providers emphasize that automated reporting, real‑time transaction tracking, and integrated accounting for fuel card programs improve operational efficiency and compliance, implicitly addressing receivables and reconciliation delays.[2] Where such automation is absent, AR days can expand by several days, tying up hundreds of thousands of dollars for medium‑sized commercial books.

Forecourt capacity loss from fleet/commercial card payment friction

A fleet card provider highlights multiple decline scenarios caused by PIN mistakes, fraud‑monitoring blocks, station authorization limits, and technical difficulties like internet outages and broken keypads.[3] Even a small percentage of affected transactions at busy sites translates into lost gallons and c‑store add‑on sales, often in the low thousands of dollars per month per high‑volume location.

Compliance risk and potential penalties in open‑loop fleet card programs

Industry analysis notes that uncertainty around compliance in open‑loop fleet card programs has caused issuers to delay program launches or expansions, effectively forgoing potential revenue.[4] In regulated markets, non‑compliance with KYC/AML or card‑network rules can trigger penalties ranging from tens of thousands to millions of dollars; while individual case fines are not detailed in the sources, the risk profile and cost of compliance tooling and reviews are well‑documented.[4][6]

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