(By Balaseshan) U.S. Bancorp (NYSE:USB) said its subsidiary U.S. Bank is entering the large commercial truck market with the acquisition of TransCard's Class 7-8 fuel card network, including the product technology and its nationwide acceptance network.
The platform was developed by TransCard in partnership with U.S. Xpress, a privately owned truckload carrier, which will become the premier client of the new dual-function U.S. Bank Over The Road Card program, scheduled to launch in September.
With one of the largest over-the-road acceptance networks in United States, the U.S. Bank Over The Road Card's fleet functionality can be used for any company-authorized expense, including fuel, maintenance and tolls at thousands of locations.
To provide greater convenience and accessibility for drivers, the card also features a "dual wallet", combining the charge functionality with a prepaid account of MasterCard (NYSE:MA).
"This acquisition extends our suite of fuel and maintenance solutions and allows us to serve the full spectrum of fleet clients, from cars to heavy duty trucks," said Kurt Adams, President of U.S. Bank Corporate Payment Systems.
The MasterCard prepaid account allows direct deposit of payroll or other funds onto the card, which can be used wherever Debit MasterCard is accepted. This will make it one of the only OTR solutions that combines MasterCard-branded prepaid functionality for personal purchases with fuel charging capability for corporate purchases -- all on the same card.
USB is trading down 0.48% at $33.26 on Tuesday, while MA trades down 1.85% at $408.30.