When you are evaluating toll payment systems for your fleet, what is the best way to ensure that payments are going through so that you can avoid fines and penalties? Setting up the best toll system for fleets is one of the best investments you are going to make, because the automation makes it easier than ever to stay ahead of the ongoing bills and transactions. The goal is to reduce errors and avoid payment delays, which helps to reduce the likelihood of unnecessary costs.
In this article, we are taking a look at the pros and cons of both transponders and toll-by-plate systems. The more you know about your options, the better prepared you will be to maintain compliance and ensure that you are managing your budget at all times.
How Transponders Work in Fleet Toll Payment
It’s easy to see why transponders are a popular solution for fleet management and toll payment systems. These small devices are placed in each vehicle with technology that automatically processes the payment when the driver moves through the toll booth. For example, you might have E-ZPass or SunPass that are linked to digital payment accounts.
One of the undeniable benefits of using transponders is that drivers can move through the toll booth without stopping. The technology sends an instant payment, without manual transactions (which can increase the risk of mistakes and errors). If you are managing high-volume travel with your fleet, then this is the ideal solution to help you stay ahead of all of the transactions.
Some of the benefits of transponders include:
- Automatic payments
- Decrease administrative work in the office
- Reduce the risk of missed toll payments
What Is Toll-by-Plate and How Does It Work?
The next option you might consider is toll-by-plate for your fleet management system. While toll-by-plate still uses modern technology, it isn’t quite as automated as transponders – which can increase the risk of manual mistakes and possible penalties.
With a toll-by-plate system, the driver moves through the toll booth and a camera captures a photo of the license plate. Then, a bill is sent to the registered owner of the vehicle. Depending on the tolling authority, you have a specific amount of time in which the bill needs to be paid. For example, most of the time these toll payments are usually due within a month. If you miss the payment window because of administrative delays, then it will result in higher penalties and fees.
This method can be good if your drivers are occasionally moving through out-of-network roads. But most fleet managers agree that they don’t prefer to rely on toll-by-plate systems for all of their toll payments.
The benefit of toll-by-plate is that it is a bit more flexible in the way the system works. But there is also a higher risk when it comes to toll violations, especially if the invoices get lost in the stack of paperwork in your office.
Transponders vs. Toll-by-Plate: Breaking Down the Key Differences
So, which system is best for you to use for your fleet management? In most cases, we recommend the use of transponders because of the additional benefits they offer that aren’t available through toll-by-plate systems.
For example, payment processing is much simpler with transponders since they automatically charge the accounts. These systems allow you to avoid the hassle and headaches relating to manual payments. At the same time, automated payments also reduce the risk of unexpected charges relating to extra processing fees or late penalties.
When it comes to efficiency, transponders are the clear winner. This automated technology is much faster, especially when you have a high volume of toll payments coming through. It makes sense to leverage digital automation so that you can reduce the busy work and administrative requirements in the office.
The final benefit of choosing transponders is that these tools often integrate well with modern fleet management tools. You can see all of the transactions in a centralized admin area, giving you data and insights that can be used to improve future planning.
Which Toll System Is Best for Your Fleet?
If you are running a large fleet and you have standard toll road usage, then it probably makes sense to use transponders as your main form of toll payment. But when it comes to one-off trips or unusual routes, then toll-by-plate is often sufficient. Many fleets use both transponders and toll-by-plate systems. The transponders take care of the majority of the transactions, then toll-by-plate covers the gaps when drivers are outside of the transponder network.
As you are making these important decisions for your fleet management, it makes sense to evaluate your drivers’ travel patterns, budget, and ways to improve administrative efficiency overall. Put in the effort and work right now to set up an effective system, and it will make your life much easier in the future.
FAQs
What is the main difference between transponders and toll-by-plate?
The difference between these systems is in the way the payments are processed. Transponders allow automatic toll charge processing, while toll-by-plate sends the bills to the registered owner of the vehicle.
Which system is more cost-effective for large fleets?
If you are managing a large fleet, then it is usually more cost-effective to use transponders. This allows you to keep up with the transactions while minimizing the in-office administrative processing.
Can fleets use both transponders and toll-by-plate simultaneously?
Yes, you can use both systems based on where your fleet is driving. It often makes sense to integrate transponders in your main areas and then use toll-by-plate when the drivers are out of the region in other locations.
How do transponders improve toll payment efficiency?
The system is more automated when you are using transponders instead of toll-by-plate. This digital technology helps you avoid manual billing, which reduces the risk of human errors (and associated fines and fees). Also, drivers can move through the toll booths faster since they don’t need to stop for manual payments.
Your Decision: Choosing the Best Toll System for Fleets
Every fleet is unique, which is why there isn’t a one-size-fits-all solution. It’s important to consider your own unique needs so that you can determine whether reliability or flexibility is more important based on your typical fleet routines.
If you need help setting up the best toll system for fleets, then reach out to our team at Innovative Toll Solutions. Contact us today to learn more about toll payment systems and the ideal solutions for your unique needs.