More than 800 Pilot, Flying J and One9 fuel locations have begun accepting Relay Payments, a contactless, cardless form of payment that provides for negotiated discounts and direct billing for fleets, while also reducing fuel fraud, the companies said.
With the average diesel fillup for a large semi-tractor trailer involving about 100 gallons, card-skimming and other forms of fuel fraud can amount to large losses for trucking companies.
“We take fraud protection seriously and are always looking for innovative solutions to support the needs of our fleet customers,” said David Hughes, senior vice president of sales at Pilot Co., based in Knoxville, Tennessee.
Pilot Co. owns Pilot Travel Centers, Flying J Travel Plazas and One9 Fuel Network locations. Pilot is expanding with new locations and remodels this year. It plans to open over a dozen travel centers and add over 20 dealer locations by the end of the year, the company said.
Besides reducing fuel fraud, Hughes said, the contactless technology simplifies diesel transactions for fleet customers. Drivers open the Relay app ahead of time to plan where they can fuel up to save money. At the travel center, they enter a Relay Code to fuel and pay without swiping a credit card, which cuts down on card skimming.
“Fuel fraud and outdated payment technologies hurt the entire supply chain, costing fleets, merchants and drivers hundreds of millions of dollars each year,” said Spencer Barkoff, Relay’s co-founder and president. Atlanta-based Relay Payments, founded in 2019, is a venture-capital-backed fintech company serving the commercial fleet and trucking industry.
Fleet drivers also can take advantage of direct billing arrangements and negotiated savings using the Relay Payment platform. “A fleet that has a pre-negotiated discount with Pilot will end up enjoying their existing benefits with Pilot, without the risk of card skimming that comes with traditional card-based payments,” said David Barak, chief marketing officer for Relay Payments, told CSP Daily News.
Fuel fraud takes several forms, such as fuel card abuse, fuel pump tampering and falsifying fuel consumption records, he said. “To effectively combat this problem, it’s crucial fleets maintain vigilance, implement proactive measures, foster a culture of heightened awareness and transition their drivers away from vulnerable payment methods like fuel cards that are susceptible to theft and hacking,” Barak said. “Carriers tell us they are losing tens of thousands of dollars per month due to fuel fraud resulting from card-skimming incidents,” he said. When fraud occurs, drivers have to spend time disputing the transaction, requesting a new card be issued and seeking assistance paying for fuel when their card is blocked.
While owner-operator truck drivers can add credit cards to the Relay Payment app, they also have the option of pre-funding their Relay account or using a direct-bill arrangement with merchants to eliminate credit card payments. Relay Payments doesn’t work with Apple Pay or Google Pay, Barack said.