Payment processing is different for every industry. In the home heating and fuels industry, you have to be on top of your game, incorporating a fluid strategy that enables your organization to pivot. Taking your eye off the ball for just a few weeks, could cost your companies thousands of dollars. Yes, that’s right I said thousands of dollars!
As the nationally recognized electronic payment industry leader to the Heating Fuels Industry, my clients are insured optimum processing efficiencies that deliver more profits to the bottom line. Back in 2005, I was the visionary entrepreneur behind utility rate credit card processing for the Heating Fuels industry, resulting in billions of dollars of saving. You need to be hyper-focused at all times as recent changes last month alone have drastically shifted the payment landscape and it’s not a good thing to say the least for Fuel Dealers.
With the right strategy in mind, you can achieve your business goals. Here are a few tips to help you build out a fluid plan:
1. Card Brand and Program Changes
As eluded to above, organizations need to be aware of interchange (complex core pricing matrix) updates and changes as they can significantly affect your processing costs overnight. With this in mind, on April 16th, Visa Credit enacted several changes that adversely affects Fuel Dealers to the likes that haven’t been seen before.
Not only did Visa roll out one of their largest general rate increases in company history, but eliminated a program I advocated for more than 15 years ago that’s been utilized by Fuel Dealers. This compounded bad news which rolled out simultaneously last month, equates to Visa Credit increases of 20%-45% on many of the prominent consumer card types! That’s extremely painful when you factor an average transaction sizer of $350
2. Reduce fraud
One of the greatest enemies to small and medium-sized business owners is fraud and chargebacks. Every time you have to deal with a chargeback, it costs you significant time and money. Not only do you have to refund the money for the service you provided, but you also have to pay the chargeback fee determined by the processor.
To help avoid chargebacks in the first place, consider upping your customer service and acting quickly by contacting customers directly. The sooner you act, the easier it is to build trust and peacefully resolve disputes.
Additionally, you can make sure your documentation is up to date so you have proof if you encounter a false charge.
As thousands of business owners adjust to the new digital age brought on by the COVID-19 pandemic, I suggest implementing security measures like multi-factor authentication and CW code requirements.
3. Oversee and secure customer data
With every transaction, you’ll gain access to valuable customer data through your management system.
If you’re able to analyze the data, you’ll better understand your customers’ buyer personas. When sifting through the data, you’ll also notice signs of illegitimate customers. You can have your system flag abnormalities and notify you immediately. It’s vital you make smart, data-driven decisions to optimize the system and protect your business.
4. Work with the right payment strategist who’s an expert in your niche
As a business owner, you’re juggling many tasks at once. There’s absolutely no way you’ll be able to manage all aspects of payment processing outside of a high-level overview and constant monitoring is a must going forward.
That’s why you need the right strategist to guide you in the right direction and help deploy a customized payment solution tailored to the accounting functions and necessities of Fuel Dealers . At Richmond Financial Services, my goal is to create the perfect payment processing plan that works for you. Visit my website or call (617) 843-5700 for more information.
