Credit cards. Processing and fees. Paying bills on time. It’s a lot to manage that’s for sure, but the fluid nature of all the credit card brand changes creates constant flux, compounding the complexities associated with overall costs.
As a business owner in the oil and propane industry, it is essential to leverage best-in-class financial technology (fintech) tools to automate processes and help control cash flow. Partnering with an experienced electronic payment professional to help navigate the intricacies of interchange (the complex credit card pricing mechanism) and the specialized programs available to the heating fuels industry are critical first steps but just the beginning. The big four card brands semi-annually release updated pricing and program changes which often require back-office tweaks and technical adjustments to ensure seamless interchange optimization.
This in itself is tricky and timely as technology plays a big role in adapting to these changes but the key prerequisite needed to pivot in a seamless manner is working with a knowledgeable professional who fully understands and properly interprets the updated rules and requirements necessary for transactions to continue to qualify correctly. Once mapped out, on to navigating these complex changes and understanding the technical requirements and compatibilities of the different products and technologies utilized by fuel dealers. Yes, this can be a daunting process for sure and it takes an expert to quarterback all these moving parts to sync up the technical processing requirements along with multiply technology platforms. That’s OK, I’m here to help you along the way. That’s why I personally compiled this guide to help provide a quick birds-eye view of some of the key elements of electronic payment processing for the heating fuels industry.
Credit Card Merchant Fees & Interchange
You will always be charged a processing fee whenever you accept a credit card payment. No exceptions. This fee is always set by your credit card provider and takes several factors into account, including interchange fees, services fees, and markups.
Although credit card merchant fees are unavoidable, I have a lot of experience lowering them as I am the visionary behind utility rate processing for the heating fuels industry resulting in billions of dollars of savings.
Payment Processing: Who’s Involved?
In the world of payment processing, there are often too many cooks in the kitchen. Outside entities like credit card associations, issuing banks, acquirers, processors, and payment gateways all have their own interests and agendas which change over time. These agendas help establish rules and regulations that end up affecting business owners like you.
The Big 4 Credit Card Brands: How Do the Processing Fees Differ?
Generally speaking, each card brand establishes its own pricing schedules and programs which are updated semi-annually as noted above. A deep understanding of all the programs is critical in order to properly orchestrate all the nuances associated with industry-specific programs and their technological requirements.
I hope this article was informative and answered your most pressing questions. To schedule a personal consultation where I can develop a treasury strategy for your business, please visit my website or call (617) 843-5700.
