CH Jones, the Walsall-based company behind Keyfuels and Diesel Direct networks in the UK, is set to introduce a microchip-carrying fuel card in the next few months.
Instead of the traditional magnetic strip, the new card's details and authorisation will be held on microchip and granted using a personal identification number, in the same way that cashpoint cards work.
Chief executive Chris Welsh said: 'Smart card technology can deliver benefits on a number of different levels.
'In many ways the by-products in terms of accurate management information and the ability to tailor card usage in a flexible but controlled way can be just as important as the fundamental benefit, which is massively increased security.
'The chip card, used in conjunction with a pin number, will eliminate the vulnerability of some companies' conventional magnetic strip cards to fraud and misuse.'
The introduction of chip cards in France has almost eliminated fraud, he claimed, and by 2005, use of chip cards by banks is set to be standard.
Welsh said: 'We are making use of technology to provide additional management information benefits to customers.'