Shell Oil Products U.S. and Citigroup Inc. today announced the launch of the Shell Drive for Five proprietary credit card, which offers cardholders savings on fuel purchased at Shell petroleum stations. Citi issues the card and processes the transactions.
The credit card enables consumers to save 5 cents per gallon on Shell gasoline and diesel fuel as long as they purchase at least 45 gallons up to 100 gallons during the month, the company notes in the release. The product is one of the first proprietary cards from an energy company to offer everyday savings, Shell contends.
The Shell Drive for Five credit card offers cardholders additional benefits, including the ability to separately track gasoline purchases, online account management, ATM cash access with a cash-advance fee of either $10 or 5% of the amount, and Citi’s identity-theft protection. Moreover, consumers also may use the card for car washes and repair services, and food and drinks from Shell convenience stores.
The credit card limit varies based on each consumer, and the interest rate for the card is 24.99%. The annual percentage rate for cash advances is 29.95%. The card carries no enrollment, monthly or annual fees.
Ron Shevlin, an analyst at Boston-based Aite Group LLC, tells PaymentsSource the new Shell card likely is the first proprietary petroleum card to offer everyday savings. The card represents a move to “drive loyalty at the pump and offer consumers a way to track their spending, which is a trend a lot of issuers are trying to offer for better management,” Shevlin says.
Because consumers may use the card only at Shell, there is “no downside for risk of the company’s credit portfolio,” he adds.
Consumers may start applying for the card in-store or online.
Shell’s latest card joins a long line of other Shell-branded products, such as the Shell Saver Card, which settles transactions over the automated clearinghouse system by using magnetic ink character recognition information from personal checks to access customers’ checking accounts. The Saver Card offers 2 cents off per gallon and the ability to purchase anything, except lottery tickets, from the retailer’s convenience store (see story).