Fleet Management News & Business Info | Commercial Carrier Journal
Issue link: http://read.uberflip.com/i/923471
28 commercial carrier journal | january 2018 technology Peer payments Digital wallets change how transportation funds move BY AARON HUFF P ayment systems in the trans- portation industry are begin- ning to resemble "digital wal- let" technologies used by consumers. Fleets may welcome this trend, since traditional card-based systems and money transfers require more over- sight to manage. Full-service logistics provider Choptank Transport uses a traditional money transfer system to send cash advances for fuel expenses to owner-op- erators and small carriers. e Preston, Md.-based company occasionally re- ceives fraudulent phone calls from people claiming to work for motor carriers, said Marcia Wood, chief financial officer. e callers ask for a cash advance on a load, and they might be using apps to switch their actual phone number to a legitimate carrier's number. Choptank employees are told to hang up the phone and call the number listed for the motor carrier in the Federal Motor Carrier Safety Administration's Safety and Fitness Electronic Records database. "We verify the carrier and go through questions about the load," Wood said. P2P networks In the consumer space, "peer-to-peer" payment systems are growing rapidly. ese cloud-based systems store a user's bank account or credit card information to draw funds and use an app that serves as a digital wallet to execute transactions. Popular P2P systems include Pay- Pal, Venmo, Apple Pay and Android Pay. Similar platforms are coming to the trucking industry and have the potential to create more efficient and secure payment processes. U.S. Bank's Voyager Network is planning an app for release this year that will allow drivers to generate vir- tual single-use accounts to pay for fuel and maintenance if their fleet manag- ers grant them access. "ese virtual card accounts will have the same pre-established purchasing limits as drivers would have on their Voyager card," said Marie LeMoine, the company's senior vice president. Fleet managers also will be able to use the new app to pay monthly invoices to U.S. Bank from their mobile device and to order cards, close cards, reset PINS and change spending limits. LeMoine believes the new app is a logical step toward allowing drivers to store permanent card numbers and pay at the pump via their phones. "is capability will likely coincide with the 2020 date by when all auto- mated fuel dispensers need to make the switch to EMV chip technology," she said. Easy freight payments In April 2017, Comdata announced Comchek Mobile, a P2P system that includes an app and expands on the capabilities of its Comchek Express money transfer system. Once drivers or other parties sign up and are registered to use the app, they receive a unique Comchek Mobile ID number and a Comdata debit card. Fleets can transfer funds to drivers or vendors electronically by using the unique IDs of each party. Drivers also can transfer funds to third parties such as lumpers or merchants using their Comchek Mobile IDs. Drivers also are able to use Comchek Mobile to transfer funds to their per- sonal bank account or to their Comda- ta debit card to make purchases at fuel stations, hotels and other over-the-road locations. Another application for Comchek Mobile is to issue payments for freight transactions. e technology elimi- nates the need for a freight broker or shipper to collect payment information from the carrier. e only information needed to issue payment is the carrier's Comchek Mobile ID number. In April 2017, Comdata announced a partnership with FR8Star, a web-based freight operations platform specializing in oversize, overweight and open-deck loads. Carriers that book open-deck loads from brokers using FR8Star can receive payment through Comchek Mobile. Carriers that haul loads booked on FR8Star.com are able to receive fuel advances at the moment of pickup, as well as full payment quickly aer proof of delivery is received. ese latest developments in pay- ment processes give fleets and drivers new options to increase flexibility, convenience and security. in focus: ELECTRONIC PAYMENT SYSTEMS